A representative of a group focused on boosting TV and film production in the United States is urging Congress to take action on proposed legislation that would provide incentives to the industry.
In an op-ed published in The Hill, James Babbin, a film and audio producer, actor and member of the Coalition for American Production, voiced support for legislation proposed last month that would provide tax incentives for studios and other media production companies to boost media production in the U.S.
According to its sponsors, the bipartisan Motion Picture, Television, and Entertainment Revitalization Act could bring hundreds of thousands of production jobs back to the U.S. by establishing a 20% tax credit on labor expenses for American workers on qualifying film and television productions, with bonus credits worth up to 30% for productions that hire in rural or federal disaster areas, work across multiple states, or bring work home from overseas.
Noting that the U.S. film and television annually brings in approximately $9 billion more from overseas than the U.S., Babbin cited industry statistics that showed that the amount of such production is decreasing domestically, with 45% of U.S. films and scripted TV shows being produced outside the U.S., compared to one-third three years ago.
“That is not just a scene change,” Babbin wrote, “it is skilled work, artistry and investment leaving the U.S.”
A state is not a country. States can influence where projects land; they cannot alone ensure those projects stay in the U.S.
James Babbin
States have been aggressive going after media production, with Babbin citing Georgia, Kentucky, Oklahoma, Utah and Pennsylvania leading the way among the nearly 40 states that currently offer film incentives.
But that’s not enough, he added.
“A state is not a country. States can influence where projects land; they cannot alone ensure those projects stay in the U.S,” he wrote. “Even strong state programs can be outbid when other countries offer more competitive packages. Sixty-five countries offer national production incentives. Some, like Canada, Australia and Japan, combine them with regional programs, giving them an even greater advantage.
“A federal incentive won’t diminish competition among states; it will strengthen their ability to compete globally while rewarding those that innovate most,” he added.
Babbin also called for transparency, supporting a test that would verify that the act is producing the economic benefits touted in the act.
In the end, Babbin said such legislation is needed because “the industry won’t stand still.”
“Global competition, changing audience habits, and new technologies are rewriting the script,” he concluded. “Disruption isn’t necessarily a threat; it can be an opportunity if America strengthens the infrastructure that generations have built and prepares for the next act.”
The bill is led by Representatives Laura Friedman, Nathaniel Moran (TX-01), Linda Sánchez (CA-38) (CA-30), Brian Jack (GA-03), David Kustoff (TN-08), Judy Chu (CA-28), Mike Carey (OH-15), and Tom Suozzi (NY-03) in the House. In the Senate, the bill is led by Senators Tim Scott (SC) and Adam Schiff (CA).
A one-pager on the bill is available here. Full text is available here.
