A bipartisan group of lawmakers unveiled federal legislation Thursday that would create a 20%-30% film and television production incentive in the United States, aiming to secure American dominance in entertainment production.

The proposed federal credit would stack on top of existing state tax credits. Combined, the subsidies would rank among the world's most generous for film and TV.

"If it passes and it stacks clean, shooting in Georgia or California or New York is the best deal on the planet," said Joe Chianese, senior vice president for incentives at Entertainment Partners. "Nothing overseas comes close."

The legislation results from a two-year effort by Hollywood unions and the Motion Picture Association, the lobbying arm of the major studios. A historic slump in production has cost more than 50,000 jobs in Los Angeles alone over the last four years, prompting calls to counter generous subsidies in the U.K., Canada, and 63 other countries. President Trump endorsed the push last month, calling on Congress to "immediately" craft legislation to save the industry.

How the Credit Works

The 20% base credit would apply to all labor costs, covering both below-the-line and above-the-line workers. A series of "uplifts" would grant 5% bonuses for filming in rural areas or for independent productions, bringing the potential maximum to 30% of labor costs. Los Angeles County would also qualify for a 5% bonus for the next five years as a federal disaster area.

"If we want to keep American storytelling in America, we have to level the playing field, and that's exactly what this bill does," said Rep. Nathaniel Moran, R-Texas, one of the bill's sponsors. "This isn't about subsidizing Hollywood — it's about supporting the American worker, one story and one production at a time."

The MPA released a study last week projecting that a federal incentive would double the nation's $20 billion film and TV production industry by 2032 and create roughly 143,500 jobs.

"We cannot stand by as more and more American film production moves overseas, taking jobs, investment, and an important source of American cultural influence with it," said Sen. Tim Scott, R-S.C. "This legislation will create jobs in communities across America, support local economies, and help ensure that the next generation of iconic American films is made right here in America."

Sen. Adam Schiff, D-Calif., said he has pushed for a federal incentive for years to stop the exodus of jobs overseas.

"Now, we have the best opportunity in decades to get it done," he said.

The Competition

Several states already offer tax incentives of 30% or more. California is debating whether to raise its state incentive, currently set at 35%-45% but capped at $750 million per year.

Abroad, Manitoba currently offers one of the world's most generous incentives, with a credit on below-the-line labor reaching as high as 65%. Lynne Skromeda, Manitoba's film commissioner, said it remains unclear how much impact a U.S. credit would have on production in the province.

"The devil is in the details," she said. "I think it definitely could have an impact. But Manitoba is the kind of place where you make it through no matter what."

Skromeda said some local producers have done back-of-the-envelope math and concluded Manitoba would still come out ahead due to the currency exchange rate.

Chianese noted that other countries' responses remain an open question.

"There's going to be some response," he said. "You have to imagine that the UK and Canada are going to do what they can to protect the industry they have."

If the bill advances, the immediate question will be whether the stacked federal-state credits actually shift production back to U.S. soil — or trigger a new global subsidy race.