Trump Calls for Federal Tax Incentives to Bring Hollywood Productions Back to U.S.
On Monday, President Donald Trump fired a warning shot at Hollywood’s exodus, urging Congress to adopt a nationwide tax incentive that would keep film and television productions on American soil. In a post on Truth Social, Trump called the U.S. film industry a “complete and total disaster” and accused other countries of siphoning off jobs with more generous subsidies.
The call came after a meeting with veteran actor Jon Voight, a longtime advocate for a federal production credit. Voight and other industry leaders, according to Trump’s post, urged the president to push for a tax break that would help retain U.S. productions. Trump urged bipartisan cooperation, arguing that the incentive would be paid back “tenfold” through boosted economic activity and tax revenue.
Hollywood’s decline is no longer a distant rumor. Last year, the Los Angeles Times reported that 45 percent of American movies and scripted television shows were shot abroad—up from roughly 33 percent in 2022. Canada, the United Kingdom, and Hungary have become the primary destinations for projects that once filmed in California and other U.S. states.
Voight is part of a coalition that includes the Motion Picture Association (MPA), the Directors Guild of America, and several entertainment unions. The group has drafted a proposal that would grant a 20 percent federal tax credit on labor costs for productions filmed in the United States. The MPA welcomed Trump’s support; its chairman and CEO, Charles Rivkin, called a federal incentive a potential “landmark step” toward bringing productions back to local communities.
California’s Senate Majority Leader Adam Schiff, a Democrat, also expressed support. Schiff said a federal incentive could help the state’s film industry recover from the loss of jobs and revenue caused by the shift to foreign locations. However, the proposal faces challenges in Congress, where bipartisan support is not guaranteed.
The federal credit would complement the state incentives that many U.S. states already offer to attract film production. New York, Georgia, and Louisiana, for example, provide cash rebates or tax credits that have helped keep productions within their borders. A federal credit would aim to level the playing field with the generous subsidies offered by Canada, the UK, and Hungary.
Industry analysts note that while tax incentives can stimulate local economies, the overall return on investment is mixed. Some studies suggest that the cost of subsidies outweighs the benefits, especially when a significant portion of the money goes to out‑of‑state talent. Nevertheless, the MPA and other industry groups argue that the broader economic impact—jobs, hospitality, and ancillary services—justifies the expense.
Trump’s push reflects a broader debate over how the United States can compete with other countries that have aggressively marketed themselves as film‑friendly destinations. The proposal has drawn attention from both sides of the political spectrum, with some lawmakers expressing caution about the fiscal impact and others emphasizing the potential for job creation.
As the discussion moves forward, the next steps will involve drafting legislation, negotiating the specifics of the credit, and securing bipartisan support in Congress. The outcome will determine whether the U.S. can reverse the trend of production migration and restore Hollywood’s position as a global center for film and television.
The proposal remains in the early stages, and no formal bill has yet been introduced. The industry will be watching congressional activity closely as lawmakers weigh the potential benefits and costs of a federal film and television tax incentive.
