President Trump urged Congress on Monday to approve federal tax incentives aimed at reviving American film and television production, arguing that the domestic entertainment industry has been hollowed out by projects moving to Canada and other countries.
Push for Bipartisan Legislation
In a social media post on Truth Social, Trump announced he had met with actor Jon Voight, whom he has designated as his “Hollywood Ambassador.” According to the president, the meeting led to the conclusion that there is “no incentive” to work in Hollywood anymore and that the downturn is “hurting California very badly.”
https://x.com/senadamschiff/status/2094564609248149580
“Jon, and many others in the Industry, are suggesting we do Federal Tax Incentives in order to Make our Movie and Television Production Business GREAT AGAIN, Perhaps GREATER THAN EVER BEFORE!,” Trump wrote.
Trump stated that meetings are already being arranged with lawmakers from both parties. He emphasized that he wants the discussions to be bipartisan, pointing out that “so much money is being lost in California, and other largely Blue States.”
“I am going to suggest that Republicans and Democrats get together, and immediately craft Legislation to save the Movie, Television and Entertainment Business in America,” Trump added.
While specific details regarding the structure of the proposed incentives remain scarce, Trump asserted that “the amount of money spent” on tax breaks would be offset “tenfold by the money pouring into the Treasury’s coffers.”
Industry Response and Political Context
Charles Rivkin, chairman and chief executive of the Motion Picture Assn., applauded the announcement in a statement.
“For over a century, American studios, casts, and crews have produced the films and series that the world wants to see,” Rivkin said, adding that a federal incentive “would be a landmark step toward bringing more production to local communities in all 50 states, strengthening our nation’s economy, and making our country a more competitive place to produce, create, and tell great stories.”
The proposal was quickly embraced by Democrats, particularly in California, who have otherwise been critical of the president. The push comes as production continues to shift overseas. Data shows that last year, 45% of all U.S. films and scripted television shows were shot internationally, rising from approximately 33% in 2022.
This off-shoring trend has drawn sustained concern from California lawmakers, including Sen. Adam Schiff (D-Calif.). Although California and other states have bolstered their own regional production incentive programs, Schiff argued at a March event that local measures alone are insufficient.
“State programs cannot simply substitute for the kind of global, federal and competitive tax incentives that are needed to bring production back to American soil and stop its offshoring,” Schiff said at the time, adding that “the urgency could not be greater.”
Previous efforts by Trump to address the issue included a floated threat to impose tariffs on foreign-made films, though that concept ultimately failed to gain traction among lawmakers.
