A bipartisan group of U.S. lawmakers introduced legislation on September 24 that would create a federal tax credit for qualifying film and television production work performed in the United States.
The proposal, called the Motion Picture, Television, and Entertainment Revitalization Act, would establish a 20% base credit on qualified compensation for eligible productions. It also includes a separate 20% base credit for qualifying traditional post-production and visual-effects work when at least 75% of those service costs are incurred in the United States.
The legislation has been introduced, but it has not become law. Its terms may change as it moves through Congress.
Featured photo: Nirvana Studios – Custom Circus, via Wikimedia Commons, licensed under CC BY 4.0. The image is illustrative and is not connected to the legislation.
Why it matters
For working crews and independent producers, the most consequential details are the bill's focus on labor, its inclusion of post-production and visual effects, and a proposed bonus for qualifying independent productions. If enacted in its current form, the federal credit could work alongside state incentives, changing how producers compare U.S. locations with international alternatives. That possibility is meaningful, but it should not be treated as available financing until the legislation passes and implementation rules are published.
What the proposal includes
According to IATSE's same-day summary of the introduced legislation, eligible feature films, television pilots, and television seasons would need total costs above $1 million and would generally need to complete at least 75% of principal-photography days in the United States.
Qualified compensation would cover payments for labor-based services performed in the United States, including pre-production and post-production work. The proposal also creates a path for traditional post-production and visual-effects services to qualify independently when the domestic-spending threshold is met.
Additional 5% credits could raise the total incentive to a maximum of 30% for productions meeting specified conditions. Those conditions include qualifying as an independent production, filming in certain rural opportunity zones or federally declared disaster areas, and meeting a multi-state production test. The bill also contains an incentive tied to increasing domestic production relative to a historical foreign-production baseline.
What independent producers should watch
The independent-production bonus could matter, but the practical value will depend on definitions, application procedures, refundability or transfer rules, timing, and how the federal incentive interacts with state programs. Those implementation details can determine whether a credit improves working cash flow or arrives too late to help finance production.
Producers should also watch the proposed $1 million minimum cost and the 75% domestic principal-photography requirement. Projects below that threshold would not qualify under the terms summarized by IATSE, and international co-productions may need careful analysis before assuming eligibility.
For now, filmmakers should not place the proposed credit into a locked finance plan. The useful move is to model it as a possible future scenario while continuing to budget from incentives and funding sources that are already enacted and available.
Industry support—and the unanswered question
IATSE endorsed the bill on the day of its introduction and identified passage as a top federal legislative priority. The Television Academy also urged Congress to pass it, emphasizing the inclusion of post-production and visual effects and the possibility of combining a federal program with existing state credits.
Senator Adam Schiff, one of the lawmakers backing the effort, described the proposed federal incentive a day before introduction as a response to production moving overseas and said it was designed to stack with state programs. Support from unions, industry organizations, and lawmakers in both parties gives the proposal momentum. It does not guarantee passage.
What happens next
The bill must move through the legislative process in the House and Senate before it can become law. Committee action, amendments, budget scoring, and negotiations could change its eligibility rules or credit percentages.
Spotlight News will update this report when official bill text and identifiers are available through Congress, and again if the proposal advances or its production requirements change.
Primary sources
Update note
Published September 24, 2026, using statements released by IATSE, the Television Academy, and Senator Adam Schiff's office. This story will be updated when Congress publishes stable bill text and identifiers or if the proposal changes.