A coalition of entertainment unions, along with the Motion Picture Association, have come together to appeal to President Trump for his support in backing tax deductions that would benefit the entertainment industry. In a joint letter addressed to the President, signed by two of Trump’s industry ambassadors, Jon Voight and Sylvester Stallone, the unions expressed their gratitude for the President’s efforts in highlighting the issue of production jobs moving overseas.
The letter, which can be accessed here, acknowledged the President’s recent announcement of a 100% tariff on foreign-produced movies as a means to bring back production jobs to the United States. However, the letter did not directly mention the tariff but instead focused on the need for federal film subsidies and incentives to encourage more productions to take place in the U.S. The unions emphasized the importance of implementing policies that would make the U.S. market more competitive in the global entertainment industry.
The joint letter outlined three specific measures that the unions are urging President Trump to support as part of the budget reconciliation package currently being discussed in Congress. These measures include an extension of Section 181, which allows for the deduction of up to $15 million in production expenses. The unions are proposing to double this cap to $30 million, with the possibility of increasing it to $40 million for productions in low-income areas.
Additionally, the letter calls for the reauthorization of Section 199, a deduction that expired in 2017 but could help reduce corporate tax rates for domestic filmmaking. The unions argue that such incentives would not only make the U.S. market more competitive but also create and retain high-paying jobs in the industry. Another key point raised in the letter is the reauthorization of Section 461, which allows companies to carry back their net operating losses for up to five years, benefiting film companies with fluctuating income patterns.
The leaders of various entertainment guilds and associations, including the Directors Guild of America, SAG-AFTRA, and the Writers Guild of America, among others, signed the letter. They emphasized the importance of incentivizing domestic film and television production to create more job opportunities for industry workers. Russell Hollander, the national executive director of the DGA, stressed the need for comprehensive federal tax incentives to combat the decline in production within the U.S.
Matthew Loeb, the international president of IATSE, highlighted the impact of aggressive overseas incentives on American film and television workers, leading to job losses and economic uncertainty. He urged the federal government to provide a balanced response to support American jobs and level the playing field internationally.
While President Trump has floated the idea of a 100% tariff on foreign-made films, the White House clarified that no final decisions have been made. Trump expressed his willingness to meet with industry representatives to discuss the issue further, emphasizing his desire to help rather than harm the industry. Studio leaders have already convened to strategize on how to address the potential tariff, highlighting the entertainment industry’s significant trade surplus with the rest of the world.
Overall, the joint letter from entertainment unions and the Motion Picture Association underscores the importance of federal tax incentives and deductions in revitalizing the domestic film and television production industry. By implementing these measures, the industry aims to create more job opportunities, retain talent, and strengthen the U.S. market’s competitiveness on a global scale.
