MPA and Unions Unveil Report on Federal Film Incentive Job Creation

The Motion Picture Association joined forces with a coalition of entertainment unions on Tuesday to present a comprehensive report demonstrating how a proposed federal film incentive could reverse declining domestic production trends. The study projects the creation of 143,500 jobs per year through a 20% credit on production labor costs, marking a significant potential expansion of the American entertainment sector.

The MPA organized a Zoom press conference featuring actor Jon Voight alongside Reps. Laura Friedman and Brian Jack, the Democratic and Republican co-authors of the forthcoming legislation. The bipartisan presentation emphasized broad political support for the measure, which proponents argue would fundamentally strengthen the nation’s position in global entertainment production.

According to the report’s economic projections, the proposed incentive would double the size of the domestic industry by 2032, generating $125.3 billion in additional cumulative expenditures through 2035. The analysis presents a compelling case for federal intervention in an industry that has seen increasing competition from international production hubs offering substantial tax incentives to filmmakers and studios.

Industry Leadership Emphasizes Urgency

Sean Astin, president of SAG-AFTRA, delivered a forceful statement underscoring the stakes involved in the legislation.

“The story it tells is undeniable. We have to do this. We are going to lose the primacy of entertainment production if we don’t do this. That’s not hyperbole,” said Astin.

The MPA has devoted considerable effort to building Republican support for the initiative and received a significant boost when President Trump endorsed the concept last month. The lobbying organization has framed the federal incentive as a nationwide economic development tool rather than a measure exclusively benefiting traditional production centers like Los Angeles and New York, arguing that workers in all 50 states would see employment gains.

Geographic Impact Beyond Traditional Production Centers

Rep. Brian Jack, a Republican representing the Atlanta suburbs, provided testimony about the production downturn’s impact on his constituents. He expressed commitment to collaborating with Democrats and the Trump administration on advancing the proposal, noting that his district has experienced severe economic disruption from declining production activity.

“I represent craftsmen, technicians, electricians that now are on second, third, fourth jobs because the jobs they thought they were moving to Georgia for are no longer there,” Jack said. “Over the coming weeks and months, it’s going to be critical for members of Congress across both chambers, from the House to Senate, to be aware of the positive economic impact.”

The congressman’s remarks highlight how production declines have affected workers who relocated specifically for employment opportunities in states that developed robust film industries through their own incentive programs. Georgia emerged as a major production hub over the past decade through aggressive state-level tax credits, making the current downturn particularly impactful for workers who built careers around that infrastructure.

Legislative Timeline and Strategic Approach

While formal legislation has not yet been introduced, supporters expect the bill text to be released sometime this month. Proponents maintain hope for passage by year’s end, though some stakeholders caution that the complex legislative process may require additional time to ensure the measure garners sufficient support and addresses technical considerations.

Charles Rivkin, chairman and CEO of the MPA, emphasized the importance of crafting legislation that functions effectively across diverse geographic and economic contexts during the Zoom conference.

“We have everything I think teed up in a nice way, but we’ve got to get this right. It’s got to really work and work for all 50 states and all Americans, and that’s what we’re striving to do right now,” said Rivkin.

International Competitive Landscape

A photograph of Rivkin with President Emmanuel Macron of France appeared visible in the background of his Zoom screen, prompting questions about whether international competitors might respond to a U.S. incentive by increasing their own subsidies. Rivkin acknowledged recent meetings with Macron and other international leaders, though the source text cuts off before completing his response regarding global competitive dynamics.

The international dimension represents a critical consideration for policymakers evaluating the proposal, as countries including Canada, the United Kingdom, Australia, and various European nations have implemented substantial production incentives that have successfully attracted American projects. A federal U.S. incentive would fundamentally alter this competitive landscape, potentially repatriating production that currently occurs overseas due to cost advantages.

Economic Structure and Implementation Details

The proposed 20% credit would specifically target production labor costs rather than broader production expenses, focusing the incentive on job creation and worker compensation. This structure distinguishes the federal proposal from many state-level programs that offer credits on total qualified production expenditures, suggesting a deliberate policy choice to maximize employment impact relative to revenue cost.

The report’s projection of doubling the domestic industry within six years represents an ambitious growth target that would require substantial shifts in production location decisions by studios, streaming platforms, and independent producers. The cumulative $125.3 billion in additional expenditures through 2035 would generate significant secondary economic benefits through spending on equipment, facilities, catering, transportation, and other production support services.

The coalition backing the measure includes major entertainment unions that represent workers across the production spectrum, from actors and directors to behind-the-scenes craftspeople and technicians. This unified front demonstrates how the production decline has affected diverse segments of the industry workforce, creating political alignment across traditionally separate labor organizations around the shared goal of restoring domestic production volumes.