Congressman David Kustoff Co-Leads Bipartisan Motion Picture, Television, and Entertainment Revitalization Act

WASHINGTON – Congressman David Kustoff (R-TN-08) helped lead the introduction of H.R.10582, the bipartisan Motion Picture, Television, and Entertainment Revitalization Act. The bill would establish a federal tax credit for qualified film and television productions, with additional incentives for productions in qualifying rural communities and disaster areas.

“Film and television production supports workers and small businesses across the country, including in Tennessee,” said Congressman David Kustoff. “When productions are made in the United States, that work reaches far beyond the set. It supports the crews, local contractors, restaurants, hotels, and small businesses that bring a project to life. This bipartisan bill will help Americans compete for those jobs and keep more of that economic activity here at home.”

The Motion Picture, Television, and Entertainment Revitalization Act would:

• Establish a 20 percent federal tax credit for qualified compensation paid or incurred for qualifying services performed in the United States in connection with film and television productions. The credit rate could increase by five percentage points under specified circumstances, subject to a 30 percent cap.
  • For a film, television pilot, or television season to qualify for the credit they must generally have total costs exceeding $1 million and at least 75 percent of its principal-photography days in the United States.
• Encourage more production activity throughout the United States:
  • Producers that increase their domestic production activity relative to their prior foreign production activity could receive an additional five-percentage-point credit.
  • Producers that meet substantial production and payroll thresholds in at least 10 states could receive an additional five-percentage-point credit.
• Increase the credit by five percentage points for productions that conduct at least 30 percent of their principal photography days in a rural qualified opportunity zone or eligible disaster area.
• Increase the credit by five percentage points for productions completed by independent producers.
• Extend the credit to qualifying traditional post-production and visual effects projects when at least 75 percent of the associated costs are incurred in the United States.
  • These projects could receive an additional five-percentage-point credit if completed by an independent producer or performed in a qualifying rural opportunity zone or disaster area.
• Eligible labor costs would include work performed in the United States during pre-production, production, and post-production. Profit-sharing and residual payments would not qualify. Traditional post-production work would include editing, sound editing, scoring, music editing, and dubbing.
• The federal credit would supplement, rather than replace, existing state production incentives.

Congressman Kustoff introduced the legislation alongside Reps. Nathaniel Moran (R-TX-01), Mike Carey (R-OH-15), Brian Jack (R-GA-03), Laura Friedman (D-CA-30), Linda Sánchez (D-CA-38), Judy Chu (D-CA-28), and Tom Suozzi (D-NY-03). Senators Tim Scott (R-SC) and Adam Schiff (D-CA) introduced companion legislation in the United States Senate.

Background

• According to the Motion Picture Association, the American film and television industry supported 2.74 million jobs and paid $242 billion in wages in 2022. By 2024, those figures had declined to 2.01 million jobs and $202 billion in wages.
• Tennessee established its Film/TV Incentive Fund in 2006 and adopted its current grant formula of up to 25 percent in 2012. In 2021, the state authorized a tax credit for qualified production payroll expenses. H.R.10582 would build on these programs with a federal incentive, helping Tennessee compete with countries that offer national production incentives.
• The bill would apply to qualifying feature films, television pilots, and television seasons. News programs, live sporting events, talk shows, daytime dramas, social media content, advertising campaigns, and corporate productions would not qualify.
• The credit would be available for eligible productions beginning in taxable years after December 31, 2026.

Click here to read the bill text.

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