Soon after President Trump Hollywood surprised with his call for definitions On films produced abroad, California Governor Gavin New Roiri traders in the discussion with an unexpected show.
despite General enmity between the twoThe Whites arrived at the White House in the hope of working together to create a $ 7.5 billion federal tax motivation to maintain more products in the United States
Hollywood people who are familiar with Hollywood wanted a federal tax incentive program all the time. some in public The proposal on Mondays chanted.
Many legislators, including Senator Adam Chef, and MP Laura Friedman, have called for a national program to try to put the United States equally with foreign countries that offer generous incentives.
But such an initiative faces great obstacles.
This will be a difficult sale of ordinary American taxpayers, which may not be keen to support the industry seen as a political and liberal political. It is not clear where the financing for the American entertainment industry is classified in a list of constantly growing national priorities.
“I will give it 50/50 at best,” said Sanjay Sharma, who is studying the media and entertainment at the Marshall Business College at South California University.
On Tuesday, an alliance of Hollywood unions and industrial trade groups – including the ASSN animated image. The unions representing the script book, managers and actors have supported the idea of local production incentive. They said that the proposal will strengthen the goal of the administration of reshaping American jobs and providing economic growth throughout the country.
“With the Congress pledged to tax legislation 2025, we urge legislators to include a production incentive to support cinematic and television production by the workers in America,” the coalition said in a statement.
But with many competing priorities facing the country, including infrastructure, displacement and the O opioid crisis, lawmakers may face a difficult battle in justifying voting to support the entertainment industry effectively.
“Political optics will be very difficult,” said George Huang, a professor of script writing at the theater, cinema and television school at the University of California, Los Angeles. For most people, [the entertainment industry] It seems like a trivial thing. “
He said that even if there is a tax incentive for federal films, this is not a guarantee that filming will automatically return to the United States, especially if other countries choose to increase their tax credit programs in response.
However, such a proposal will provide the support that is needed for the entertainment industry, which has been beaten in recent years through the effects of the epidemic, the double -strike strikes and representatives in 2023 and decreased in spending by studios.
The situation has created what leaders call an employment crisis in cinema and television, especially in California.
“Now this industry swings,” Huang said. “This would take a long way to help the ship to correct it and return us to its path until we are the capital of the entertainment world.”
The federal tax motivation was part of a proposal from actor John Voette, one of the Hollywood ambassadors, a Hollywood ambassador, and his director Stephen Paul, who traveled to Mar Lago at the end of last week to present Trump’s plan to re -photograph jobs to the United States
This proposal included 10 % to 20 % of the federal tax credit that can be added in addition to the incentives of the individual state, According to a document published by the deadline.
Charles E also met. Revakkin, CEO of MPA, with Voight last week, according to a source familiar with the issue that was not allowed to comment.
After publishing the story of the deadline, Paul warned that the document was not intended as a complete political proposal.
“The document does not claim that it represents the collective views of the participating movie and television organizations, but it is a set of ideas that have been explored in our discussions on how to enhance our position as creative leaders,” Paul wrote.
Meanwhile, MPA and others pressed Congress to extend and strengthen Article 181 of the Federal Tax Law to encourage more films to stay in the United States
Such a move can enhance smaller and independent productions as well as studio films. The department that deals with film production was enacted in 2004 amid a recognition that more films are transferred to Canada and Europe, and the United States needed to remain able to compete.
Section allows 181 with up to $ 15 million of qualified film and television production expenses that can be deducted during the year in which it was incurred-or up to $ 20 million if the project is produced in a low-income area, according to MPA. Products can qualify if the costs of work are three quarters in the United States
This scale allows the filmmakers to take the discount at the cost, not after the release of the movie. It is important that independent filmmakers who often work on nutrition budgets and cannot wait for years to know the benefit.
“If there is a bright side, some US -based companies may start to take a look at local production levels,” said Frank Allalilla Junior, a KPMG partner in the Media and Telecommunications Unit, said. “Perhaps there will be more federal and state incentives here in the United States and this is what people hope for.”
