Hollywood Lawmakers and Union Leaders Push for Federal Film Incentives Amid Outbound Production Crisis

GLENDALE, Calif. — Rallying in the intense 100-degree heat outside the historic Alex Theatre on Tuesday, a high-powered delegation of California Democrats joined forces with prominent entertainment union leaders to sound the alarm on a pressing economic issue: the steady exodus of American film and television production jobs to foreign shores.

The gathering was part of an aggressive, last-ditch legislative push to build undeniable momentum for a federal film incentive before the end of the year. Sen. Adam Schiff, alongside eight Democratic representatives from the Southern California region, delivered a unified message to the public and to Washington lawmakers. They argued that the United States can no longer afford to sit on the sidelines while at least 65 other countries dangle lucrative tax subsidies and financial packages designed specifically to lure Hollywood crews, soundstages, and high-paying creative jobs away from the domestic market.

"We are so close to getting this done," Schiff declared to the assembled crowd of union members, industry workers, and local officials, emphasizing the urgency of the moment under the blazing sun. "Whatever we can do to get this done, that is job No. 1. It just can’t wait. It’s too important. The losses so far have been too extraordinary."

The legislative vehicle driving this high-stakes campaign is a bill introduced just last month that aims to fundamentally level the playing field. The proposed measure would establish a national 20% to 30% transferable tax credit targeted directly at domestic labor costs for qualified film and television productions. According to updates provided by Schiff’s office, the measure has successfully brought a dozen senators on board—evenly split with six Democrats and six Republicans. Among the latest lawmakers to throw their support behind the bill as cosponsors are Sens. Thom Tillis, a Republican from North Carolina, and Chris Coons, a Democrat from Delaware.

Proponents of the legislation recognize that the window of opportunity to pass the bill is exceptionally narrow. Lawmakers will have roughly a five-week window during the upcoming lame-duck session of Congress, which will take place after the general election. Despite the political hurdles and the brief timeline, Rep. Laura Friedman, whose office organized the Tuesday press conference, expressed a measured sense of optimism regarding the bill’s prospects.

"We need to have this on the president’s president’s desk by mid-December, as far as I’m concerned," Friedman said during an interview following the event. She noted that she is "cautiously, guardedly optimistic" that the legislation will ultimately pass in essentially its current form, likely integrated as a key component of a larger end-of-year tax package.

Friedman reflected on the grueling legislative journey required to reach this point, highlighting the gradual buildup of political capital. "This has been almost two years of constant work," she explained. "It hasn’t just come together in the last few weeks. It’s been a snowball effect. It started out as this idea, and then we just kept building and building and building. So I feel like we have a great momentum."

The intricately crafted proposal features several strategic provisions designed to address specific economic hardships and regional needs across the country. Notably, the bill includes a specialized 5% bonus for productions that choose to film in designated disaster areas. Due to the devastating fires that swept through the region last year, this particular disaster-area bonus would apply to the entirety of Los Angeles County through January 2030. Furthermore, the legislative package contains targeted bonuses meant to support independent filmmaking endeavors, as well as incentives for shooting projects in rural opportunity zones.

Industry analysts point out that when these proposed federal credits are combined with existing state-level incentives—such as those already established in major production hubs like California and New York—the total cumulative tax credit could easily skyrocket to 50% or more. Supporters argue that such a powerful financial combination would instantly eclipse the competitive packages offered by foreign governments, effectively rendering the U.S. market highly attractive once again.

Labor leaders were quick to underscore the severity of the competition facing American entertainment workers. Duncan Crabtree-Ireland, the executive director of SAG-AFTRA, pulled no punches when describing the aggressive tactics employed by foreign nations seeking to capture the economic windfall generated by motion picture and television production.

"It is fair to say that these other countries—they recognize the quality of these jobs—that’s why they put these measures in place," Crabtree-Ireland stated passionately. "That’s why they are eating not only our lunch, but our breakfast and our dinner as well. And we have to change that. This is our opportunity to do it."

The economic argument for the federal incentive was bolstered significantly earlier in the week when a coalition of major industry unions published a comprehensive report on Monday. The document documented a staggering quarter-century erosion of U.S. production as a share of total global spending. According to the findings of the report, the American share of feature film production plummeted from a dominant 74% down to just 42% over the past 25 years. Similarly, the U.S. television production market share dropped from 94% to 64%, despite the fact that both the film and television sectors have experienced substantial overall growth in absolute terms during that same period.

The push for a federal incentive has also transcended traditional partisan divides. In August, President Donald Trump publicly urged Congress to take immediate action on the matter, calling on lawmakers to pass an incentive without delay and lamenting the current state of the domestic entertainment capital by declaring that "Hollywood is a Complete and Total Disaster!"

Meanwhile, the Motion Picture Association, which represents the major Hollywood studios, has worked to frame the legislation not merely as a localized bailout for traditional production capitals like California and New York, but as a broad-based economic driver that would benefit all 50 states. At the same time, the MPA has maintained a slightly more cautious stance regarding the legislative timeline. While studio representatives agree that moving expeditiously is crucial, they have repeatedly emphasized that it is equally important to "get this right" to ensure the long-term viability and effectiveness of the tax credit.

However, union representatives and entertainment industry workers on the ground argue that the crisis has reached a tipping point where further delay is simply not an option. Thousands of craftspeople, technicians, performers, and support staff have faced prolonged periods of unemployment or underemployment as runaway production drains projects away from domestic lots.

"When this passes in this lame-duck session, it will immediately impact production in 2027," said Mike Miller, vice president of IATSE, emphasizing the real-world stakes for the workforce. "And there are hundreds of thousands of entertainment industry workers that are counting on it."