The Federal Film Credit Fixes the Back End. The Front End Is Still Wide Open.

Last week, a bipartisan group in Congress introduced the Motion Picture, Television, and Entertainment Revitalization Act. It is the first serious attempt this country has made at a national production incentive. If you’ve spent any time watching productions pack up for Vancouver, London or Budapest, that alone is worth a pause.

For decades, dozens of countries have competed for American production with national money. The U.S. answered with nothing at the federal level. Individual states were left to bid against entire nations, and a production slump has cost Los Angeles alone tens of thousands of jobs in the last four years.

The bill also arrives at a moment when federal support for production is otherwise thin. Section 181, which let producers deduct production costs as they were spent, lapsed for productions starting after 2025. This bill is Washington stepping back in, and in a much bigger way.

What’s actually in it

• A 20% base credit on qualified U.S. labor. This includes above-the-line talent, which is often one of the largest lines in an independent budget.
• Four possible 5% uplifts, capped at 30% total. They reward independent productions, shooting in opportunity zones or federally declared disaster areas (Los Angeles County currently…