Reviving American Film and TV Production: The Push for Federal Tax Credits and Competing Global Markets
The importance of local film and TV production was emphasized by Sen. Adam Schiff at a Burbank City Hall event. Schiff highlighted the loss of jobs and opportunities due to productions being lured abroad by foreign governments. He stressed the need for a federal tax credit to bring production back to American soil and stop offshoring. Industry leaders agree that a federal incentive program would significantly boost domestic production activity and benefit U.S. production overall. However, bipartisan congressional support and President Trump's approval are necessary for such a credit to be implemented.
The United Kingdom has become a prominent destination for Hollywood productions, attracting major projects like Marvel Studios' "Avengers: Doomsday" and Universal Pictures' "The Odyssey." The U.K. offers attractive incentives, experienced crews, and state-of-the-art facilities, making it a preferred location for many high-profile productions. With a strong crew base, infrastructure, and fiscal incentives, the U.K. continues to be a reliable choice for filmmakers in a competitive environment.
Canada has been a popular choice for U.S. producers since the 1980s, offering federal and provincial tax credits that can stack up to more than 60% in certain regions. Major productions like HBO's "The Last of Us" and FX's "Shogun" have been filmed in Canada, particularly in provinces like Alberta and British Columbia. Despite challenges from declining broadcast TV and streaming service cutbacks, Canada remains optimistic about its future in the film industry.
Eastern Europe, particularly Hungary and Germany, has seen a significant increase in production spending, offering flexible incentives and lower production costs compared to the U.S. and U.K. Hungary's 30% rebate and Germany's federal incentive program have attracted big-budget projects like Warner Bros.' "Dune: Part Two" and Disney-owned Searchlight Pictures' "Poor Things." These countries provide purpose-built stage spaces, trained crews, and infrastructure that pose new competition for the U.S. film industry.
Ireland has emerged as a top filming location, with a 32% base tax credit and specific incentives for visual effects and unscripted series. The country's attractive incentives have drawn U.S.-based productions like game shows and series, showcasing the cost-effectiveness of filming in Ireland. With a growing presence in the film industry, Ireland continues to be a preferred choice for filmmakers seeking incentives and unique filming locations.