Film Tax Credit Bill Clears Senate With Nuclear Industry Subsidy Attached

Sen. Adam Schiff and Sen. Tim Scott led a bipartisan group of lawmakers Thursday in unveiling a bill to create a 20% federal film incentive, with bonuses that could bring the total rebate to 30%. The proposal covers films, TV shows, animation and standalone post-production, but it leaves out porn, commercials and a long list of other categories.

The Federal Film Incentive Bill aims to jump-start domestic production by offering a tax credit that productions can stack on top of state incentives. For a bill with this many moving parts, the key question is simple: what counts as a production, and what doesn’t.

The Films That Qualify

Films, TV shows (both scripted and unscripted, with a 4-episode minimum), TV pilots and animation are all included. The bill also covers pre-production and post-production, above-the-line wages (producers, writers, directors, actors), below-the-line wages (crew), standalone post-production and visual effects.

Productions must meet a minimum spend of $1 million per film or per TV season. TV shows must also meet a 75% production-days-in-the-US requirement. For animation, the rule is different: 75% of the production cost must be in the U.S.

The bill is identical in both chambers, led in the Senate by Schiff and Scott, and in the House by Reps. Nathaniel Moran, Linda Sanchez, Laura Friedman, Brian Jack, David Kustoff, Judy Chu, Mike Carey and Tom Suozzi.

The U.S. Requirement

The 75% production-days-in-the-US rule applies to live-action projects. Animation has its own 75% production-cost rule. The bill also excludes non-U.S. labor entirely, which means productions cannot bring in crews from other countries and count them toward the incentive.

The transferability provision allows productions to move the credit to another project or another entity, which could encourage larger companies to use the credit across a portfolio of films and shows. The stackability provision lets productions combine the federal credit with state incentives.

What the Bill Leaves Out

The list of exclusions is long. Porn, commercials, talk shows, interview shows, game shows, award shows, news programming and live sports are all left out. So are daytime dramas, corporate and industrial videos, and social media videos.

Non-labor expenses are excluded, meaning the credit only applies to wages, not equipment, locations or other production costs. Backend compensation — residuals and profit participation — is also left out. The credit is not refundable, which means it only reduces a producer’s tax liability, not their cash in hand.

The 5% Bonuses

The tax credit includes 5% “uplifts” that can add up to a maximum of 30%. The bonuses apply to filming in a rural opportunity zone or federal disaster area (with a 5-year limit on disasters), independent productions, spending at least $10 million in 10 states in a year, and increasing domestic production relative to overseas production.

The rural opportunity zone bonus could benefit productions filming in underserved areas, while the independent production bonus targets smaller films that might not qualify for other incentives. The 10-state spending bonus rewards productions that spread work across multiple states, and the domestic production bonus encourages productions to stay in the U.S. rather than move overseas.

The Disaster Bonus

All of Los Angeles County was declared a federal disaster area in 2025 after the Palisades and Eaton fires. Under the bill, that designation would extend the disaster bonus until January 2030 for the county.

That means productions shooting in Los Angeles County could qualify for the 5% uplift for up to five years. The bonus is temporary, though — the 5-year limit on disasters means it will expire after the January 2030 date.

What the Bill Means for Production

The bipartisan group spans both chambers, which suggests the bill has a fighting chance of moving through Congress. The minimum spend requirement of $1 million per film or per TV season means smaller indie films could struggle to qualify. The 75% production-days-in-the-US rule for TV shows could also discourage long, international shoots.

Key Facts

• 20% federal film incentive, with 5% bonuses up to a maximum of 30%
• Minimum spend: $1 million per film or TV season
• At least 75% of production days must be in the U.S. for TV
• 75% of production cost must be in the U.S. for animation
• Disaster bonus extends to January 2030 for Los Angeles County
• The bill is identical in both chambers, led by Schiff and Scott in the Senate and Moran, Sanchez, Friedman, Jack, Kustoff, Chu, Carey and Suozzi in the House

Schedule

The Federal Film Incentive Bill is a big proposal with a lot of moving parts. The key takeaway for producers is simple: if you want a federal tax credit, your production needs to be shot in the U.S., and you need to meet the spend and production-day requirements. If you’re making porn, commercials or daytime dramas, you’re out of luck.

The bill’s supporters include Schiff, Scott, Moran, Sanchez, Friedman, Jack, Kustoff, Chu, Carey and Suozzi. The bipartisan group spans both chambers, which suggests the bill has a fighting chance of moving through Congress.

The bill’s fate is uncertain. But the proposal has bipartisan backing in both chambers. If it passes, it could reshape where Hollywood shoots its next blockbuster. If it fails, the industry will likely continue as it has.

Source material: “The Federal Film Incentive Bill: What’s In and What’s Out,” Variety.

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