President Donald Trump has expressed support for a federal tax credit aimed at encouraging film production to remain within the United States, responding to concerns from the entertainment industry over the loss of jobs to foreign countries. The move comes as Hollywood has increasingly shifted shooting locations abroad to benefit from lower costs and government subsidies offered by other nations.
Historically, numerous U.S. states have provided incentives for film and television production, but the federal government has not implemented a nationwide program to compete with countries such as Australia, Britain, and Hungary, which have successfully attracted projects with generous subsidies. Industry groups and labor unions have long advocated for broader federal support to help stem the exodus of production jobs from California and other key markets.
On Monday, Trump took to social media to highlight the issue, urging bipartisan cooperation to establish a federal film tax credit. He pointed to the migration of film work to Canada and elsewhere, stating that this trend has negatively impacted California’s economy. “Republicans and Democrats get together,” the president wrote, “to write and approve legislation that would keep jobs in the United States.”
The proposed incentive is seen by supporters as a potentially significant boost not only for the entertainment industry but also for the broader economy. Charles Rivkin, chief executive of the Motion Picture Association—which represents major studios including Disney, Warner Bros., Universal, Netflix, and Amazon—praised the president’s endorsement, calling it a “landmark step” that could enhance production across all 50 states.
While the creative aspects of films—such as writing, casting, and editing—are typically based in the U.S., many productions have relocated physical filming abroad due to lower production costs and substantial foreign subsidies. This has led to job losses for thousands of American industry workers, including camera operators, set decorators, lighting technicians, and other skilled trades.
The idea of a federal tax credit has found bipartisan support. California Governor Gavin Newsom has proposed collaborating with the Trump administration on a $7.5 billion federal incentive program. Senator Adam Schiff and Representative Laura Friedman, both Democrats with ties to Hollywood, have advocated for swift congressional action on the matter, emphasizing the value of preserving domestic jobs in the film sector.
Last year, actors Mel Gibson, Sylvester Stallone, and Jon Voight were appointed by Trump as special ambassadors to support Hollywood efforts, and Mr. Voight has been directly involved in discussions on increasing domestic film production. According to reports, Voight and his associates have met with the president and White House officials, presenting proposed legislation that includes a 20 percent transferable tax credit stacked with existing state incentives.
Opponents of government subsidies caution that such incentives can generate limited taxpayer returns and contribute to competitive subsidies that drive up costs without guaranteeing long-term benefits. Nevertheless, the industry and political figures aligned with Hollywood remain optimistic that federal legislation will help reclaim jobs and revitalize the U.S. film production market.