Washington is Finally Talking About a Federal a Federal Film Tax Credit

For the first time in twenty years, a federal production tax credit is a live conversation in Washington. Over the past year, the Motion Picture Association (MPA), the major entertainment unions, and a growing coalition of producers have been meeting with lawmakers, commissioning economic-impact studies, and – as of this month – briefing the House Ways and Means Committee directly. It’s the most serious push this idea has gotten since the Section 181 was first signed into law back in 2004.

For readers less steeped in production financing: Section 181 was a federal tax provision that let qualifying film and TV productions deduct their costs immediately, rather than spreading them out over time – a rule that expired at the end of 2025 and is now part of this same lobbying push to bring it back.

Every story I've seen on it — including Variety's recent rundown of the lobbying push — covers the same angle: will this bring production jobs back to the U.S., will it help red states as much as it helps California, can the industry get the White House on board given the president's on-again-off-again threats of a 100% tariff on foreign-made films. All fair questions.