Trump Urges Federal Film Tax Credit Amid Californias Expanded Incentives, Ventura County Could Benefit

On August 31, President Donald Trump urged Congress to approve a federal tax incentive designed to keep film and television production within U.S. borders.

The proposal, supported by a coalition of major Hollywood studios and labor unions, would grant a 20 % federal tax credit on labor costs for productions shot in the United States.

The Motion Picture Association and several entertainment unions have endorsed the plan, aiming to counter the industry’s “runaway production” trend, where projects relocate abroad to exploit lower costs and local incentives.

No federal legislation has yet been enacted, and the credit’s specifics remain under development. Trump has called for bipartisan meetings with lawmakers to move the bill forward.

California has taken its own steps to keep productions on U.S. soil. In 2024, the state’s Film and Television Tax Credit Program expanded its cap from $330 million to $750 million annually.

Assemblymember Jacqui Irwin, a Democrat from Thousand Oaks, has championed the program. In July, she warned that restrictions on business tax credits could erode the program’s competitiveness, citing the loss of more than 42,000 California film and television jobs between 2022 and 2024 and arguing that production incentives support both entertainment workers and ancillary businesses. Her comments underscore the importance of maintaining a robust incentive framework to preserve California’s status as a leading production hub.

During the first year of the expanded program, California awarded credits to 170 projects that are projected to generate $6.6 billion in economic activity and nearly 35,000 cast and crew jobs, according to state data.

A federal incentive would complement state programs. While the federal credit would make U.S. production more competitive against overseas locations, California would continue to vie with other states—such as Georgia, New York, and New Mexico—for domestic production sites.

Ventura County, situated in the southern part of the state and part of the Greater Los Angeles area, already plays a significant role in the industry. The Ventura County Film Commission reported that in 2025 the county issued 773 film permits, accounting for an estimated $26.1 million in economic activity. In 2023, the county recorded 1,486 filming days—a decline from 4,873 days in 2022 that generated $90.4 million in economic activity.

Location filming has broader economic effects. Hotels, restaurants, catering, transportation, construction supplies, equipment rentals, and other local businesses benefit from the presence of crews. These ripple effects extend to local supply chains, boosting demand for building materials, lighting equipment, and catering services. The county’s film permits also support employment for drivers, electricians, carpenters, and other crew members.

The potential impact of a federal tax credit on Ventura County depends on the program’s structure and qualifying productions. If the credit is applied broadly, the county could see an increase in filming days and associated spending. However, future activity will also hinge on state incentives and the competitive landscape among U.S. states. The credit’s design—whether tied to specific production thresholds or geographic qualifiers—will shape the extent of its impact.

At present, Congress has not acted on the federal proposal, and the specific qualifications for the credit remain unclear. Trump’s call for bipartisan cooperation suggests that the bill could become a priority for lawmakers, though no timeline has been announced.

In summary, the federal film tax credit proposal remains in the drafting stage, while California’s expanded tax credit program is already in effect and has attracted significant production activity. Ventura County’s film industry, which has experienced a decline in filming days and economic output in recent years, could benefit if the federal incentive is enacted and aligns with state and local incentives. If enacted, the federal credit could help offset the cost gap that currently drives productions to states with more generous incentives.

The next steps will involve congressional hearings, negotiations on the credit’s structure, and coordination with state programs. Industry stakeholders are closely monitoring the legislative process, awaiting further details on the credit’s parameters.