A bipartisan bill offering up to 30 percent in federal tax credits on domestic production was formally introduced this week, with congressional insiders confident of passage before year's end.

Congress moved this week to close the gap between American production costs and the rest of the world. A bipartisan group of lawmakers formally introduced the Motion Picture, Television, and Entertainment Revitalization Act, a bill that would give qualifying film and TV productions a 20 to 30 percent federal tax credit on U.S.-based labor costs.

The base credit covers 20 percent of qualifying expenses, including above-the-line talent. Productions can reach the 30 percent cap through bonus criteria: shooting across at least ten states, qualifying as an independent project, or working in rural opportunity zones or federally declared disaster areas. Los Angeles, under a current disaster area designation, qualifies automatically for the 5 percent uplift through 2030. The bill covers animated projects and standalone VFX and post-production work, and stacks on top of existing state incentives.

The legislation was introduced in the House by Rep. Laura Friedman (D-CA) and Rep. Nathaniel Moran (R-TX), with Senate versions backed by Sen. Adam Schiff (D-CA) and Sen. Tim Scott (R-SC). "This bill tells every country outbidding us that we are done losing," Friedman said, according to The Wrap. The Motion Picture Association, IATSE, the Directors Guild of America, and SAG-AFTRA all endorsed the bill. President Trump gave his backing as well.

The Motion Picture Association projected the legislation could "inject $250 billion into the country's economy and deliver nearly 145,000 new jobs yearly." Congressional insiders say passage before the end of 2026 is possible, with credits set to take effect January 1, 2027.

Whether this reshapes where American films get made depends on whether the credits hold long-term. For now, the studios are watching.