Federal Film Credit Proposal Targets 20 Percent Base Incentive

President Donald Trump is pushing for the creation of a federal tax credit for the film and television industry.

He posted about the effort on Truth Social on Friday, November 13, 2026. He said the support for the measure is "unbelievable." His goal is to bring production work back to the United States.

The push follows a recent midterm election where Republicans suffered sweeping losses. Despite that outcome, Trump said he is working with lawmakers from both parties. He argued that the entertainment industry has moved largely to Canada, the United Kingdom, and Australia. He noted that actors and producers want to return to the United States.

A bipartisan group of legislators has introduced the Motion Picture, Television, and Entertainment Revitalization Act. The bill proposes a base tax credit of 20 percent on labor expenses. This rate can increase to a maximum of 30 percent if projects qualify for specific bonuses.

To be eligible, a project must have a budget exceeding $1 million. Additionally, 75 percent of the filming must take place in the United States. The federal subsidy would stack on top of existing state incentives. This structure mirrors systems in other countries that have attracted Hollywood productions in recent years.

Trump claimed the bill would positively affect hundreds of thousands of blue-collar workers. He stated that money spent on these incentives would be made up tenfold by revenue flowing into the Treasury. He said meetings are being scheduled routinely with leaders from both political parties to finalize the deal.

Democrats are preparing investigations into the Trump administration. They will decide whether to focus on film subsidies during the upcoming lame-duck session. The tax credit is estimated to cost billions of dollars. Trump countered that much of the money currently lost to other countries is coming out of blue states.