Saving Hollywood: The Urgent Need for Federal Action

The American film and television industry is more than just entertainment — it’s a powerful economic engine that supports hundreds of thousands of good-paying jobs, fuels small businesses, and promotes American culture around the globe. But today, this industry faces an urgent threat from international competition. Foreign governments have successfully lured film and television productions, and the multitude of jobs they create, away from the United States with aggressive tax incentives and subsidies. Films intended for initial release in the U.S. are increasingly being shot overseas — and American workers are paying the price.

In just two years, IATSE members have lost tens of thousands of jobs across the United States. That’s thousands of families, small businesses, and communities across the country feeling the economic hardship of a shrinking industry. Movies and television shows created primarily for U.S. audiences are being produced abroad — not because of better talent or technology, but because other countries recognize the value of these productions and are offering robust financial incentives that the U.S. simply doesn’t match. While U.S. states have offered tax credits for production, generating billions in local economic output and creating thousands of jobs, in recent years state incentives have not been enough to prevent productions from moving overseas.

Without a comprehensive federal policy response, the U.S. risks turning its back on a signature American industry. The federal government must act to level the playing field and make the U.S. film and television industry more competitive on the global stage, either through a federal incentive or other measures to spur domestic production.

IATSE is pursuing all policy measures that can be implemented to return and maintain U.S. film and television jobs, while not disadvantaging our Canadian kin. Federal policymakers must act to level the playing field and make the U.S. film and television industry more competitive on the global stage, either through a federal incentive or other measures to spur domestic production.

IATSE calls on U.S. federal policymakers to:

1. Implement a Federal Film & TV Production Tax Incentive. A globally competitive, labor-based incentive for U.S. production that supplements state incentives is essential to keep film and television jobs in America.

2. Reinstate Section 199 Domestic Production Activities Deduction for Film & TV. Restoring Section 199 would make the American film and television market more competitive by offering tax relief for companies that produce in the U.S. with American workers, rather than overseas.

3. Extend Section 181 Expensing for American Film & TV Production. Returning production to the U.S. will require the more broad-based policy solutions above, but extending Section 181 will prevent further offshoring and preserve existing U.S. production – especially TV series and smaller budget and independent films.

4. Ensure reciprocal trade practices that ensure fair competition for all IATSE members. Any eventual trade policy must do no harm to our Canadian members — nor the industry overall.

The situation is dire, with President Matthew D. Loeb of IATSE stating, "The United States needs a balanced federal response to return film and television jobs. IATSE recommended that the Trump administration implement a federal film production tax incentive and other domestic tax provisions to level the playing field for American workers." This economic hardship has affected thousands of families, small businesses, and communities across the country. The situation is dire, with President Matthew D. Loeb of IATSE stating, "The United States needs a balanced federal response to return film and television jobs. IATSE recommended that the Trump administration implement a federal film production tax incentive and other domestic tax provisions to level the playing field for American workers."



The lack of competitive tax incentives and high production costs have contributed to this trend, leading to an employment crisis in the industry. The entertainment job market has also suffered from the ongoing exodus of productions from California, where costs are high and tax incentives are low. This has led to a situation where young creatives are questioning whether L.A. is the place to launch their careers. "The landscape is especially dry in television writing, according to a jobs report released last month by the Writers Guild of America. TV writing roles dropped 42% in the 2023-2024 season that coincided with the strikes, the report said. About a third of those cuts were to lower-level appointments." This data underscores the severe impact on entry-level positions, which are crucial for young professionals entering the industry.

In summary, the shift of film and television productions overseas has led to significant job losses and economic hardship in the U.S., with regions like California being particularly affected. The lack of competitive tax incentives and high production costs have contributed to this trend, leading to an employment crisis in the industry. The federal government must act to level the playing field and make the U.S. film and television industry more competitive on the global stage, either through a federal incentive or other measures to spur domestic production.