Hollywood stakeholders are pushing forward with efforts to secure a federal film incentive, despite initial momentum waning after President Trump’s comments on tariffs for foreign-made films. Independent film producers Steven Paul and Scott Karol have expressed optimism that a bipartisan bill will be introduced in Congress this year.
The proposal aims to address the global production downturn since 2022 by countering tax credits offered by countries like Canada, the UK, and Australia, which have lured US production jobs. California and New York have increased their incentives, but no federal level progress has been made.
A bipartisan bill, aiming to extend Section 181, a tax deduction for independent film producers, is taking shape on Capitol Hill. The deduction allows investors to write off production costs immediately and is set to expire December 31. Hollywood unions and the Motion Picture Association have called for an extension and increased cap to $30 million.
Another key provision, Section 461, which allowed companies to carry back their net operating losses, expired in 2022. Industry stakeholders believe this reauthorization could help film companies with uneven revenue streams.
While some critics remain wary of Trump’s comments on tariffs, producers like Paul acknowledge the president’s commitment to reviving American production. With no clear Republican support yet, a federal incentive remains uncertain, but Paul describes the current efforts as “a very good beginning.”
Source: https://variety.com/2025/politics/news/jon-voight-plan-save-hollywood-update-1236488611