WASHINGTON: US President Donald Trump has called for a federal tax credit to benefit the movie and television industry, saying it would help bring the production of Hollywood blockbusters back to the United States.
“Congress should approve, immediately, a Federal Production Incentive to create entertainment jobs in America. It can be done quickly, accurately, efficiently and, importantly, will benefit all of America,” Trump said in a social media post.
“What we watch on the silver screen should be made in what was once the movie and motion picture capital of the world.”
The US film and TV industry has lost jobs to overseas production hubs, which often feature lower cost labour and more generous tax credits.
In the United States, individual states often compete against each other with incentives to lure filmmakers, but there’s little in the way of federal subsidies.
The president said his idea came out of a meeting with actor Jon Voight. Trump named Voight to be a special ambassador to Hollywood in early 2025 and tasked him with the job of bringing back film production to the United States.
Trump last year floated a 100% tariff on foreign-produced films, but that idea met resistance from some in Hollywood, who countered with plans for expanded tax subsidies instead.
Voight, an actor known for his work in classic films like Midnight Cowboy and Coming Home, and the father of actress Angelina Jolie, has been leading one push for expanded tax incentives meant to support domestic film and TV production.
Supporters argue the incentives would encourage more domestic production, countering a recent shift as entertainment companies pared spending and moved production overseas.
Hollywood has a long history of mimicking the world on its sound stages.
Rick’s Cafe Casablanca was shot not in Morocco but on a 1940s sound stage in Burbank, California, while much of the fictional African nation of Wakanda in Walt Disney Co’s Black Panther came to life in and around Atlanta.
Yet tax credits especially from the United Kingdom and Canada have increasingly lured many domestic productions abroad.
Sony Group Corp and Marvel’s Spider-Man: Brand New Day, the biggest grossing movie of 2026 to date, filmed its New York City scenes in Glasgow, Scotland.
Trump didn’t detail specifics of his plan, but groups representing more than 400,000 industry professionals last year encouraged the revival and extension of the tax code’s Sec 199 deductions for manufacturing so they apply to film and TV production, as well as an extension of accelerated deductions under Sec 181.
They also recommended restoring a tax provision allowing businesses to use past losses to reduce future taxes.
In addition to the tax incentives, Voight has proposed additional measures such as support for industry infrastructure and workforce development.
Charles Rivkin, chief executive officer of the Motion Picture Association trade group, said film studios support the effort.
“A federal incentive would be a landmark step towards bringing more production to local communities in all 50 states, strengthening our nation’s economy, and making our country a more competitive place to produce, create, and tell great stories,” he said in a statement. — Bloomberg
