What Independent Producers Need to Know About the Film Tax Credit

"A bipartisan bill introduced in Congress in late September would create the first federal tax credit for film and television production, and it includes a specific boost for independent producers. The Motion Picture, Television, and Entertainment Revitalization Act, H.R. 10582, is sponsored in the House by Reps. Nathaniel Moran (R-Texas) and Linda Sanchez (D-Calif.) and in the Senate by Sens. Tim Scott (R-S.C.) and Adam Schiff (D-Calif.), according to a Grant Thornton analysis.

The bill offers a base credit of 20% of qualified compensation for U.S. production services, rising to 30% through four five-point enhancements. One of those enhancements goes to independent producers that are not publicly traded or majority-owned by a public company. The others reward filming at least 30% of days in rural opportunity zones or disaster areas, production activity across at least 10 states, and increasing U.S. production relative to foreign work. Feature films, pilots and TV seasons must cost more than $1 million and shoot at least 75% of principal photography days in the U.S. The credit is transferable, so companies without enough tax liability can sell it, and it would apply to productions starting principal photography in tax years after December 31, 2026. It has been introduced only, and the chairs of the tax-writing committees have not taken a position.

The proposal has drawn strong union backing. At an October 6 rally in Glendale led by Rep. Laura Friedman, lawmakers and leaders from SAG-AFTRA, WGA West and other guilds urged passage, the Beverly Press reported. Separately, Section 181, the federal provision that let producers immediately expense up to $15 million in costs per production, expired at the end of 2025, and a separate bill from Rep. Judy Chu would reinstate it for five years."