Trump Backs a Federal Film Tax Break Hollywood Has Chased for Years

That is the real twist here. Trump, Voight and Schiff do not agree on much. They do agree that the current system leaves too many jobs on the table.

Photos: James McNellis from Washington, DC, United States · CC BY 2.0 · source; Greg2600 · CC BY-SA 2.0 · source

Why Hollywood Wants a Federal Credit

TheWrap laid out the problem in plain terms. Production incentives exist in 39 states, plus Washington, D.C. and Puerto Rico, but the only federal aid American productions can use is Section 181, a Bush-era provision that lets studios deduct up to the first $15 million in spending, or $20 million for shoots in low-income areas. That is not much help when other countries offer national credits on top of local ones.

The U.K. goes further, TheWrap reported, by letting productions count above-the-line salaries such as actors and directors toward the national credit. Productions with a U.K. partner can also get additional rebate payments after release to cover back-end deals. California, New York and New Jersey have raised their own program caps, but states can only do so much.

The numbers from Georgia tell the story. TheWrap reported that production in the state fell from 412 projects in 2022 to 245 in 2025. Disney and Marvel Studios moved the next two Avengers films to the U.K. after earlier installments, including Avengers: Endgame, were filmed at Trilith Studios outside Atlanta. That is the pressure the industry keeps talking about. The work leaves, then the crews, then the spending follows it.

Photos: Pamela Price · CC BY-SA 4.0 · source; HollywoodReporter3 · CC BY-SA 4.0 · source

California Wants the Credit, But Not the Whole Message

There is support for the idea in California, but not everyone wants the pitch to sound like a favor to one state. TheWrap reported that Schiff, Gov. Gavin Newsom and Rep. Laura Friedman have all urged Congress to pass a tax credit as California tries to stay competitive as a production hub.

Still, two lobbyists told TheWrap, on condition of anonymity, that they want California’s delegation to take a back seat if the bill starts moving. Trump told the California Post that he wants to bring the movie business back to Los Angeles in particular, but some industry advocates worry that would make the effort look like a handout to liberal states instead of a national jobs bill.

Chris Fenton has been selling the broader version of the argument. TheWrap reported that the producer, whose upcoming indie comedy Bad Counselors employed about 1,200 workers in North Carolina, Tennessee and California, has used Fox News and an upcoming interview with Lara Trump to push the case for a federal credit. He told TheWrap that the only way to get studios shooting in the U.S. again is to get Trump on board and to show work outside the coastal hubs.

The Timing Still Matters

The last piece is timing. Fenton and IATSE legislative director Tyler McIntosh both think there may still be a path this year. McIntosh told TheWrap that lawmakers sometimes rush bills after the midterms and before the holidays, especially if they expect a split Congress, and that a tax extenders package at the end of 2026 could be one vehicle.

Motion Picture Association chairman and CEO Charles Rivkin praised Trump’s support to Variety and said the group would keep working with the White House and bipartisan leaders in Congress to get a meaningful national incentive into law. That is where this now sits: a rare point of agreement, a messy coalition, and a legislative calendar that may decide whether Hollywood gets a federal credit or another round of speeches about one.

Every factual claim above is drawn from these. The reading of them is ours.