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Support is Growing for a Federal Film Tax Incentive

September 23, 2026

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Support is Growing for a Federal Film Tax Incentive

A Statement From Coalition for American Production (CAP) Executive Director Brian Papworth
"When productions flee overseas, the economic damage ripples far beyond the studios-it strikes at the heart of our local supply chains. The Coalition for American Production gives a voice to the thousands of crucial vendors behind the scenes, from paint stores and lumber yards to transportation companies, and equipment facilities. Our industry funds roughly 162,000 businesses nationwide, the vast majority of which are small, community-based operations employing 10 or fewer workers. Your local bagel stores, dry cleaners, and gas stations are all in the film business, even if they don't know it. Establishing a federal production incentive is essential to stopping this outward migration, leveling the international playing field, and bringing the economic engine of American storytelling back home where it belongs."

The release highlights the economic case for a federal production incentive and the importance of strengthening the United States' competitiveness as a destination for film and television production.

Key Projected Economic Impacts (Cumulative 2027-2035)
• $125.3 Billion in Additional Production Spend: The incentive is projected to reverse the decline in US production share, bringing the US share of global film and TV spending up to 65% and generating $125.3 billion in net additional direct production expenditure.
• $249.1 Billion in Additional GVA: The total contribution to US Gross Value Added (GVA) is estimated at $249.1 billion over the nine-year period.
• $133.1 Billion in Additional Labor Income: The boost in production would inject $133.1 billion directly into workers' wages and self-employed earnings.
• 143,500 Full-Time Equivalent (FTE) Jobs Annually: The policy would support an annual average of ~143,500 additional FTE jobs (or ~153,700 total annual jobs, including part-time/temporary roles) across direct, indirect, and induced sectors.

Without the incentive the report shows:

Loss of Global Production Market Share
• Continued Share Decline: The US share of global feature film production spending will drop from 34% in 2025 down to 25% by 2035.
• Television Share Shrinkage: The US share of global series production spending will fall from 42% in 2025 to 29% by 2035.
• Shift to International Hubs: Mobile US-funded productions will increasingly move offshore to take advantage of national and stacked incentive programs offered by competing countries (e.g., UK, Canada, Australia).