A proposed federal tax incentive for film and television production has drawn a warm reception in Hollywood, where an exhausted industry sees a potential lifeline after years of contraction.

The measure would stack atop subsidies already offered by more than three dozen states, including California, giving productions an additional layer of financial support as the industry continues to weather a prolonged downturn.

For a sector battered by streaming-era restructuring, strikes and reduced content spending, the prospect of federal backing signals what supporters describe as a rare piece of good news. The existing patchwork of state-level programs — from California to Georgia and New Mexico — has long shaped where productions choose to shoot, and a federal incentive would extend that competition to Washington.

California, home to the industry's historic core, maintains its own subsidy program and would see the federal incentive layered on top of it. Whether the proposed measure advances through Congress, and in what form, will determine how quickly Hollywood's weary workforce feels any tangible relief.