Federal Film Credit Backers Await a Cost Score Before the Lame Duck
Summary
A Cato Institute economist puts the 10-year price at $33 billion to $49 billion, and the House sponsor says offsets depend on an official score.
"Supporters of a national film production credit are pressing to attach it to a year-end tax package or other must-pass legislation before the 119th Congress ends, Roll Call reported Thursday. The bill, introduced September 24 as H.R. 10582 and S. 5552, offers a 20% base credit on qualifying U.S. production, with 5% bonuses up to a maximum of 30%. Rep. Nathaniel Moran (R-Texas), the House sponsor, said backers want to ""find some offsets, but we need that score,"" referring to a Joint Committee on Taxation estimate that is still pending.
Adam Michel of the Cato Institute estimated the cost at $33 billion to $49 billion over 10 years, based on industry analysis, and argued that state credits have not meaningfully grown their film industries. Rep. Laura Friedman (D-Calif.) said the U.S. is the only major film-producing country without a national credit. SAG-AFTRA, the DGA, ASCAP, Disney, Netflix and the MPA have backed the effort, and the new American Entertainment Alliance spent $60,000 on lobbying in the third quarter.
The bill has no confirmed legislative vehicle yet. Fiscal hawks are wary of new costs during a possible debt-ceiling fight, and year-end tax packages tend to draw competing priorities."
