American film and television production is facing increasing competition from abroad. More than 120 jurisdictions worldwide, including the UK, Canada, Australia, and New Zealand, now offer national production incentives, and many of these countries layer national incentives on top of regional or provincial programs. The result is a steady shift of high-value productions away from United States soundstages.
Congress is now considering a federal production tax incentive to help address this gap. A majority of states already offer their own production incentives, and pairing a federal incentive with those existing programs would give the United States a stronger position to compete for productions that can be made almost anywhere in the world. NCTA recently joined the newly formed U.S. Film & TV Production Coalition to support this effort.
The Industry’s Economic Footprint
Film and television production is a significant part of the U.S. economy. Nationally, the industry:
- Supports more than 2 million American jobs
- Pays over $200 billion in annual wages
- Maintains a trade surplus with nearly every nation in the world
- Supports roughly 162,000 businesses across all 50 states, 93% of which are small businesses with 10 or fewer employees
NCTA’s TV company members contribute directly to this footprint, supporting more than 350,000 American jobs and investing over $30 billion annually in programming and production.
What A Federal Incentive Would Deliver
A study released today by the Motion Picture Association and endorsed by the newly formed U.S. Film & TV Production Coalition examined the potential impact of a federal incentive. The study found that restoring the U.S. share of global production to its historic high of 65%, up from about 45.5% today, would:
- Generate nearly $250 billion in additional economic activity
- Add an average of more than 143,000 jobs annually across all 50 states
Separate state-level studies point to similar returns. Research on existing state incentive programs has found returns as high as $5 to $8 in economic activity for every incentive dollar spent.
Federal and State Incentives Working Together
The United States does not currently have a federal production incentive, leaving American locations at a disadvantage against countries that offer national incentives, or that combine national and regional programs. A federal incentive would not replace state programs. It would work alongside them, giving productions an additional reason to stay in the United States rather than relocate overseas.
This approach mirrors incentives Congress and state governments already use in other industries, including semiconductors, broadband, advanced manufacturing, and biopharmaceuticals.
A Coalition Backing the Effort
NCTA is a member of the newly formed U.S. Film & TV Production Coalition, an alliance of studios, guilds, unions, vendors, film commissioners, and other industry stakeholders representing nearly 400,000 creative professionals. The coalition recently sent a letter to the leaders of the Senate Finance Committee and House Ways and Means Committee urging Congress to enact a federal production incentive.
A federal incentive would help ensure that American film and television production, and the jobs, small businesses, and communities that depend on it, remain competitive in an increasingly global industry.
