What's Happening?
Jon Voight, a special ambassador to Hollywood under President Trump, is advocating for the extension of the federal tax deduction for domestic film and television production. The proposed legislation, known as the Creative Relief and Expensing for Artistic Entertainment Act (CREATE Act), aims to extend Section 181 of the Internal Revenue Code. This section allows productions filmed in the U.S. to deduct production costs within the same year. The CREATE Act, introduced by bipartisan lawmakers including Rep. Judy Chu, Sen. Raphael Warnock, Sen. Marsha Blackburn, and Rep. Nicole Malliotakis, seeks to continue this provision through 2030. Voight, alongside his business partner Steven Paul, emphasized the importance of this deduction in supporting American values and local economies, referencing their recent film project, The Last Firefighter.
Why It's Important?
The extension of Section 181 is significant for the U.S. entertainment industry as it encourages domestic film production, potentially boosting local economies and preserving American cultural narratives. By allowing productions to deduct costs, the Act could make U.S.-based filming more financially viable, supporting jobs and businesses related to the industry. This aligns with President Trump's 'America First' agenda, which aims to prioritize domestic interests. The bipartisan support for the CREATE Act indicates a shared interest in maintaining the competitiveness of the U.S. film industry against international markets, which often offer attractive incentives for filmmakers.
What's Next?
If the CREATE Act is passed, it could lead to increased domestic film production, benefiting local economies and the U.S. entertainment industry. The coalition supporting the Act, including industry unions and the Motion Picture Association, may continue to push for additional measures, such as a federal film tax incentive. This could further enhance the attractiveness of filming in the U.S. by layering federal incentives on top of state tax credits. The success of the CREATE Act could pave the way for more comprehensive legislation aimed at bolstering the domestic film industry.
Beyond the Headlines
The push for the CREATE Act highlights broader discussions about the offshoring of American film and television productions. Voight and Paul have previously engaged with President Trump on this issue, advocating for measures to keep production within the U.S. The Act's passage could signal a shift towards more protectionist policies in the entertainment sector, reflecting wider economic and cultural priorities under Trump's administration.
