10/02/2026
The proposed bipartisan U.S. Federal Film Incentive was officially introduced on September 24th as the Motion Picture, Television, and Entertainment Revitalization Act. While this is a major development, it's important to emphasize that we are still at the very earliest stage of the legislative process.
At a high level, the current version of the bill creates a new 20 percent federal credit on qualified U.S. labor, with up to four 5 percent uplifts, bringing the potential credit to 30 percent for productions that meet specific criteria such as rural opportunity zones, disaster areas, independent producers, multi-state operations, or increases in domestic production. The current bill does not include a salary cap, program cap, or sunset date – something that can be expected to change.
If this incentive moves forward, it could spark a meaningful shift in where productions choose to land and strengthen the competitiveness of U.S. labor overall. The Olsberg SPI study offers a glimpse of what that impact might be, estimating more than 125 billion dollars in new production spending nationwide.
For Arizona, the federal incentive could create new momentum for the state's production industry. Stacking federal and state incentives would give producers a stronger financial reason to consider locating projects here. In turn, this could help attract a wider mix of productions, encourage continued investment in local crew and vendors, and open doors for both independent and studio driven work. However, it is doubtful the bill will advance this session unless it becomes part of a broader tax package. Best to consider the current activity as a movie trailer with a future release date in early 2027!
You can show your support by joining IATSE in sending letters to Congress:
https://actionnetwork.org/letters/tell-congress-pass-the-bipartisan-motion-picture-television-and-entertainment-revitalization-act-mptera/
