Donald Trump wants to save Hollywood with a tax credit

The American president wants to put in place a federal tax credit to bring filming back to the United States, while Hollywood sees part of its production going abroad.

How to bring the troops home?

While Hollywood film shoots are increasingly being relocated abroad, Donald Trump is looking for a way to put Hollywood back at the center of the game.

And he is now putting forward an idea that seems to have unanimous support in the industry and within the political class: the American president announced Monday his support for the creation of a federal tax credit intended to encourage film and series productions to remain in the United States. In a post on Truth Social, Trump called on Republicans and Democrats to work together to quickly pass new legislation.

“I am going to suggest that Republicans and Democrats come together and immediately pass legislation to save America’s film, television and entertainment industry.”he writes. “Congress should immediately approve federal production assistance to create entertainment jobs in the United States. It can be done quickly, precisely, efficiently, and most importantly, it will benefit all of America.“

A sober measure but certainly more effective than the threats he has been making for months, promising to impose up to 100% customs duties on films produced abroad… Hollywood was pushing for another, more virtuous solution: a tax credit, along the lines of those proposed in Canada, the United Kingdom or in 39 American states. And this is the direction the American administration is now heading.

The head of the Motion Picture Association, Charles Rivkin, welcomed this position:

“A federal incentive would be a historic step to bring more productions back to local communities in all 50 states, strengthening our economy and making our country more competitive in producing, creating and telling great stories.“

Defenders of this measure point to the collapse of American production since the bursting of the streaming bubble in 2022. Nearly 73,000 jobs would have disappeared across the country, including around two thirds in Los Angeles. Several projects are already circulating. A proposal put forward last year by Senator Adam Schiff included a 15% tax credit on labor costs incurred in the United States. The Motion Picture Association is working for its part with Jon Voight, appointed by Trump as a “special ambassador” for Hollywood, around a credit that could reach 20%.

Trump claims to have recently met with Voight to discuss the subject and echoes the actor’s particularly harsh diagnosis of the state of American industry.

“He hates what happened to him! It is disappearing completely. She moved to Canada and other countries, with very little work yet done in the United States. Hollywood is a total disaster!”writes the tenant of the White House. According to Trump, the money invested in these tax credits would be largely recovered thanks to the economic benefits generated by the filming.

“The amount spent on tax credits will be recovered ten times by the money that enters the state coffers.he says.

A federal measure could be added to the measures already proposed by certain states such as California, New York, Georgia or New Jersey. Nearly 80 countries today use tax advantages to attract production, while several new centers have emerged in Central and Eastern Europe, Australia and South Africa.

It now remains to convince Congress. Trump sums up his ambition in a few words: “Let’s make our film and television industry GREAT AGAIN again!”