A coalition of Hollywood unions is leaning on Congress to enact a federal film tax credit, citing new research that highlights the heavy outflow of productions from the U.S.
For decades, television was the part of Hollywood that stayed home. But over the last quarter-century, with the rise of streaming and the offshoring of production, the U.S. share of major-studio spending on TV episodes has fallen from 94% to 64%, according to a report commissioned by seven entertainment industry unions.
The study from Washington-based consulting firm EY Quantitative Economics and Statistics also found that the U.S. share of major-studio spending on film productions similarly fell from 74% to 42% between 1999 and 2024.
The findings are being released as the industry rallies for a new federal film and TV tax incentive bill. Congress isn’t expected to vote on the measure until after the November midterm election.
“Many generations who have made their living in this industry are now having to question whether there’s a future for this industry in the United States,” Rebecca Rhine, the Directors Guild of America’s associate national executive director, said in an interview. “This is not just about a few people in Hollywood. This is about an infrastructure that serves the whole country and stories that reflect the whole country.”
The DGA and other Hollywood unions, including the International Alliance of Theatrical Stage Employees (IATSE), the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the Writers Guild of America, tasked EY Quantitative Economics and Statistics with quantifying location changes for film and television productions between 1999 and 2024. The analysis focused on productions from larger studios that cost at least $5 million for feature films, $1 million for TV episodes under 41 minutes and $1.7 million for longer episodes.
This drastic decline over the last 25 years is one that the pending federal tax incentive aims to address. Last month, a bipartisan group of congressional leaders officially introduced the Motion Picture, Television and Entertainment Revitalization Act. The bill would establish a 20% tax credit on U.S. labor for eligible film and TV productions, including post-production and visual effects work. The uncapped credit would cover labor expenses for production crews as well as so-called above-the-line costs, such as salaries for actors and writers.
The credit could also increase to 30% with several uplifts, including 5% bonus credits for independent productions or those that film at least 30% of principal photography days in a rural qualified opportunity zone or a federally declared disaster area.
The effort is being led on the House side by Reps. Nathaniel Moran (R-Texas), Linda Sánchez (D-Whittier), Brian Jack (R-Ga.) and Laura Friedman (D-Glendale), and on the Senate side by Sens. Tim Scott (R-S.C.) and Adam Schiff (D-Calif.). Schiff said the new data further demonstrate “the urgent need to act and pass a federal film tax proposal to stop the exodus of production to other countries offering more competitive incentives.”
“The jobs in the film and TV industry are enormously important to our country and must stay here in the United States,” Schiff said in a statement. “With the support of the President, and our strong bipartisan and bicameral coalition, our bill will help create hundreds of thousands of jobs across the nation and bring the movie magic back to America. Now is the time to get this done.”
Friedman added, in a statement, that “America cannot afford another 25 years of playing second fiddle while film and television jobs leave for other countries.”
An earlier study commissioned by the Motion Picture Assn. estimated that a federal film and television tax credit could boost U.S. production spending by $125 billion and add more than 143,000 jobs by 2035.
The EY report shows that both the total cast and crew working on major U.S. studio television episodes and movies filmed in the U.S. separately declined nearly 30% between 1999 and 2024.
The job losses have been a source of deep anxiety across the industry.
DGA’s Rhine said the union’s members are increasingly concerned about their ability to support their families and maintain their healthcare plans, as jobs keep dwindling.
“There are stories that can be told all around the world by artists. We would never question that, but these are U.S.-based companies taking U.S.-based jobs outside of the country,” added Rhine. “We think that work should be done here.”
Times staff writer Samantha Masunaga contributed to this report.
A coalition of Hollywood unions is leaning on Congress to enact a federal film tax credit, citing new research that highlights the heavy outflow of productions from the U.S.
For decades, television was the part of Hollywood that stayed home. But over the last quarter-century, with the rise of streaming and the offshoring of production, the U.S. share of major-studio spending on TV episodes has fallen from 94% to 64%, according to a report commissioned by seven entertainment industry unions.
The study from Washington-based consulting firm EY Quantitative Economics and Statistics also found that the U.S. share of major-studio spending on film productions similarly fell from 74% to 42% between 1999 and 2024.
The findings are being released as the industry rallies for a new federal film and TV tax incentive bill. Congress isn’t expected to vote on the measure until after the November midterm election.
“Many generations who have made their living in this industry are now having to question whether there’s a future for this industry in the United States,” Rebecca Rhine, the Directors Guild of America’s associate national executive director, said in an interview. “This is not just about a few people in Hollywood. This is about an infrastructure that serves the whole country and stories that reflect the whole country.”
The DGA and other Hollywood unions, including the International Alliance of Theatrical Stage Employees (IATSE), the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) and the Writers Guild of America, tasked EY Quantitative Economics and Statistics with quantifying location changes for film and television productions between 1999 and 2024. The analysis focused on productions from larger studios that cost at least $5 million for feature films, $1 million for TV episodes under 41 minutes and $1.7 million for longer episodes.
This drastic decline over the last 25 years is one that the pending federal tax incentive aims to address. Last month, a bipartisan group of congressional leaders officially introduced the Motion Picture, Television and Entertainment Revitalization Act. The bill would establish a 20% tax credit on U.S. labor for eligible film and TV productions, including post-production and visual effects work. The uncapped credit would cover labor expenses for production crews as well as so-called above-the-line costs, such as salaries for actors and writers.
The credit could also increase to 30% with several uplifts, including 5% bonus credits for independent productions or those that film at least 30% of principal photography days in a rural qualified opportunity zone or a federally declared disaster area.
The effort is being led on the House side by Reps. Nathaniel Moran (R-Texas), Linda Sánchez (D-Whittier), Brian Jack (R-Ga.) and Laura Friedman (D-Glendale), and on the Senate side by Sens. Tim Scott (R-S.C.) and Adam Schiff (D-Calif.). Schiff said the new data further demonstrate “the urgent need to act and pass a federal film tax proposal to stop the exodus of production to other countries offering more competitive incentives.”
“The jobs in the film and TV industry are enormously important to our country and must stay here in the United States,” Schiff said in a statement. “With the support of the President, and our strong bipartisan and bicameral coalition, our bill will help create hundreds of thousands of jobs across the nation and bring the movie magic back to America. Now is the time to get this done.”
Friedman added, in a statement, that “America cannot afford another 25 years of playing second fiddle while film and television jobs leave for other countries.”
An earlier study commissioned by the Motion Picture Assn. estimated that a federal film and television tax credit could boost U.S. production spending by $125 billion and add more than 143,000 jobs by 2035.
The EY report shows that both the total cast and crew working on major U.S. studio television episodes and movies filmed in the U.S. separately declined nearly 30% between 1999 and 2024.
The job losses have been a source of deep anxiety across the industry.
DGA’s Rhine said the union’s members are increasingly concerned about their ability to support their families and maintain their healthcare plans, as jobs keep dwindling.
“There are stories that can be told all around the world by artists. We would never question that, but these are U.S.-based companies taking U.S.-based jobs outside of the country,” added Rhine. “We think that work should be done here.”
Times staff writer Samantha Masunaga contributed to this report.
