Hollywood presses Congress on Trump-backed film tax incentive
Por Daniel Miller — POLITICO – TOP Stories
LOS ANGELES — Hollywood is ramping up pressure on Congress to pass a federal film and television production tax incentive backed by Donald Trump, with a new report Tuesday projecting $125.3 billion in additional U.S. production spending over nine years.
The report, commissioned by the Motion Picture Association, comes as bipartisan legislation could be introduced as soon as this week, according to two people with knowledge of the matter who were granted anonymity to discuss private deliberations.
The analysis, generated for an industry group that lobbies on behalf of Hollywood’s major studios, follows Trump’s call last month for lawmakers to move “immediately” to create a federal production incentive, throwing his support behind a growing effort to stem the loss of entertainment work to other countries. The push comes amid a period of tumult for the sector, as it grapples with the rise of disruptive artificial intelligence technology and the prospect of mass layoffs linked to the proposed merger of Paramount Skydance and Warner Bros. Discovery.
“A federal incentive would be a gamechanger for our industry,” said Charles Rivkin, chief executive of the MPA, in a statement. “This study tells us that we can bring more opportunities to life for people in all 50 states who bring great stories to life — the casts and crews, the set builders, construction workers, truck drivers, caterers, and more. That’s precisely what’s bringing President Trump, Republicans and Democrats in Congress, studios and unions and all of us together: the need to leave a positive and enduring imprint on American creativity and America’s economy.”
The study, conducted by Olsberg SPI, a creative-industries consulting firm, assumes a transferable federal tax credit equal to 20% of U.S.-resident labor costs for productions with at least $1 million in qualifying expenditures — broadly consistent with press reports in recent weeks about thepotential incentive’s contours.
The report says its projections rely on a series of assumptions, including that the legislation would take effect Jan. 1, and that productions could layer the federal credit atop any state incentives they secure. It projects that the measure would support 143,500 additional full-time-equivalent jobs in an average year and generate $133.1 billion in additional labor income during the credit’s first nine years. In total, the U.S. economy would gain $249.1 billion in additional gross value added over that span.
“Every production that goes overseas takes electricians, carpenters, drivers, and small business revenue with it,” said Rep. Laura Friedman, the Burbank Democrat who has taken a lead role in the effort, in a statement. “A national film tax credit will create more than 140,000 American jobs in all fifty states and nearly $250 billion in economic activity. That’s a commonsense, bipartisan fix, and I’ll keep working to get it done.”
The measure has gained some bipartisan support in Congress, reflecting a political reality: Several states with sizable production ecosystems are led by Republicans, including Georgia, Louisiana and Texas.
Still, the prospective credit could face pushback from cost-conscious legislators. Earlier this month, Rep. Rich McCormick (R-Ga.) told POLITICO that he was “really not a big fan of federal subsidies because, once again, we’re in 30% deficit spending right now.”
“Georgia’s a major film-producing place, and I always want to help Georgia out,” he said. “But I also want to make sure that it makes sense for the American people when it comes to how we pay for it and how much comes back to us in tax money.”
The legislation would also need support from the House Ways and Means and Senate Finance committees, which write federal tax policy.
Members of the coalition working on the legislative effort — among them Hollywood labor unions, trade groups and others — were scheduled to hold a press conference announcing the study Tuesday morning. Speakers were set to include Friedman; Rep. Brian Jack, a Georgia Republican whose district includes a major film and TV production facility; and Jon Voight, one of Trump’s special Hollywood ambassadors.
The actor, along with his advisers Steven Paul and Scott Karol, met with Trump last month and successfully urged him to post a message on social media announcing his backing of a federal production incentive.
Fonte: POLITICO – TOP Stories