Hollywood could be on its way to producing more films and TV shows at home rather than moving productions to other countries. Members of Congress are working on a new bill that could benefit the Hollywood industry, helping it grow while also creating opportunities for other industries. Now, there have been conversations for a long time about introducing an incentive for film and TV production.

It seems the plan is finally moving forward. Although nothing has been confirmed yet, the proposal is promising and can reportedly be strong competition to subsidies from the UK and Canada.

As reported by Variety, a new bill is in the works that could create a 20% federal film and TV incentive. Moreover, with bonuses, the number could rise to as high as 30%. Rep. Nathaniel Moran, a Republican from East Texas, and Rep. Linda Sanchez, a Democrat from Whittier, California, are working on the bill, with both serving on the House Ways and Means Committee.

And as per many sources, the proposed bill is expected to be introduced this month. The proposed bill reportedly would provide a 20% federal tax credit on eligible labor costs, covering both above-the-line and below-the-line workers. It could apply to films, scripted TV shows, reality TV, and animation, while news and sports broadcasts would not qualify. The bill will reportedly also allow producers to claim an extra five percent if they meet any of the four criteria given to them. 

1. Production in a rural opportunity zone 

2. Make an independent production 

3. Bring a certain amount of filming back to the U.S. from abroad 

4. Spend at least $10 million in 10 different states in a year

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Now, the proposal has also received the nod from President Donald Trump.

President Donald Trump also seemed impressed by the idea. He also showed his support in a Truth Social Post back in August. He further added in his post that this can be done quickly and efficiently.

“I am going to suggest that Republicans and Democrats get together, and immediately craft Legislation to save the Movie, Television, and Entertainment Business in America,” he wrote.  

In the last few years, domestic production has declined. As per sources, attractive incentives in Canada and other countries have encouraged producers to move their projects abroad, and there are several examples. While the proposal is promising, whether it will pass and bring about meaningful change remains to be seen.

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What do you think about the proposal? Let us know in the comments.