What's Happening?
Hollywood is experiencing a significant shift in production as more films and television shows are being shot internationally. This trend is driven by foreign governments offering attractive incentives
to lure productions away from the U.S. In 2025, 45% of U.S. films and scripted TV shows were produced abroad, up from 33% in 2022. Countries like the U.K., Canada, and Ireland have become popular destinations due to their competitive tax credits and established film industries. U.S. lawmakers, including Sen. Adam Schiff, are advocating for a federal tax credit to counteract this trend and retain production jobs domestically.
Why It's Important?
The offshoring of film and TV production has significant implications for the U.S. economy, particularly in terms of job losses and reduced economic activity in the entertainment sector. The shift affects thousands of jobs and impacts local economies that rely on the film industry. A federal tax credit could help level the playing field, encouraging productions to remain in the U.S. and supporting domestic employment. The issue highlights the need for strategic policy interventions to maintain the competitiveness of the U.S. film industry in a global market.
What's Next?
The push for a federal tax credit to support domestic film production will require bipartisan support in Congress and approval from President Trump. The entertainment industry is likely to continue advocating for policy changes that enhance the U.S.'s attractiveness as a production hub. Meanwhile, international locations will continue to capitalize on their competitive advantages, potentially leading to further shifts in global production dynamics. The outcome of these efforts will shape the future landscape of the film industry and its economic contributions to the U.S.
