Rep. Adam Schiff expressed his support on Thursday for the implementation of a federal incentive aimed at preventing film and television production from relocating to other countries, highlighting the need for the U.S. to maintain its competitive edge in the entertainment sector.
As he prepares for a potential Senate seat representing California, Schiff has officially reached out to the Bureau of Economic Analysis and the Bureau of Labor Statistics by sending a letter requesting critical data regarding how overseas production incentives are impacting the livelihood of the domestic film industry.
“In order for the U.S. to maintain its standing as a leader in the film and television production industry and spur more American jobs, we must create competitive labor-based incentives for U.S. production,” Schiff asserted in his communication, emphasizing the necessity of such measures for the job market.
The industry has long advocated for the establishment of a nationwide film incentive to complement existing state-by-state tax credit programs found in film production hubs like Georgia, New Mexico, California, and New York, which currently offer enticing packages that attract filmmakers.
Production levels in the United States have declined sharply over the past three years, attributed not only to the 2023 strikes but also a broader contraction within the industry. Hollywood unions have pointed out that lucrative incentives from countries such as the U.K., Canada, Australia, and others have effectively lured productions away from American soil.
IATSE International President Matt Loeb voiced support for a U.S. incentive in a statement on Thursday, stating that it “would level the playing field and address this imbalance,” acknowledging the urgent need for change in a competitive global market.
“We support the concept of a federal incentive for the creation of film and TV, provided the plan also has mechanisms to uphold labor standards,” Loeb stated firmly. “We are committed to saving America’s entertainment industry, and we look forward to working with our members, local unions, allies, and lawmakers at all levels to get it done.”
In an interview earlier this month, Loeb expressed optimism, indicating he believed that a federal incentive is “not off the table in any sense,” reflecting the ongoing discussions around revitalizing the industry.
“Whether it can be done remains to be seen,” he acknowledged. “It’s a global industry. Every successful production center on earth has an incentive, except the U.S.”
California Governor Gavin Newsom proposed an increase of the state’s tax incentive for film production from $330 million to $750 million, an initiative aimed at bolstering employment in the struggling job market. In a press conference following his announcement, Newsom suggested that Vice President Kamala Harris could back a federal incentive if she were to run for president.
“That’s where the federal government can also play a role,” Newsom remarked. “And I’ll just tip a hat to an Angeleno who might be the next president of the United States. She may have a thing or two to say about that. Stay tuned.”
Charles Rivkin, the chairman and CEO of the Motion Picture Association, publicly endorsed Schiff’s proposal in a post on X, showing strong support for legislative advancement in the sector.
“The Motion Picture Association stands ready to work with Congress, and our key industry partners to support this important effort,” Rivkin concluded, echoing calls for a united front in restoring the dynamism of the American entertainment landscape.
**Interview with Rep. Adam Schiff on Federal Incentives for Film and TV Production**
**Editor:** Thank you for joining us today, Rep. Schiff. You’ve recently advocated for a federal incentive to keep film and television production in the U.S. What prompted you to take this step?
**Rep. Adam Schiff:** Thank you for having me. The backbone of our entertainment industry is at risk, and it’s become crucial to create a competitive environment for film and television production right here in the United States. Productions are moving overseas due to enticing incentives offered by other countries, and this trend not only affects our jobs but our cultural influence as well.
**Editor:** You’ve reached out to the Bureau of Economic Analysis and the Bureau of Labor Statistics for data on how these overseas incentives impact the U.S. film industry. What specific data are you hoping to gather?
**Rep. Adam Schiff:** I’m looking for comprehensive information on production levels, employment trends, and the overall economic impact of film and television productions relocating abroad. This data will help us understand the scale of the issue and the urgency required to formulate a robust federal incentive that works alongside state programs.
**Editor:** You mentioned establishing a nationwide film incentive to complement state-by-state tax credits. How do you envision this working in practice?
**Rep. Adam Schiff:** The idea is to create a standardized federal incentive that supports labor-based initiatives and encourages production within the U.S. This could involve tax credits, grants, or other financial solutions that maintain job standards and uplift American workers in the industry.
**Editor:** IATSE International President Matt Loeb has expressed support for a federal incentive as well, emphasizing the need to uphold labor standards. How do you plan to ensure that these standards are maintained?
**Rep. Adam Schiff:** It’s critical that any federal incentive includes strong mechanisms to uphold labor standards. By working closely with industry leaders like President Loeb and local unions, we can develop a plan that protects workers while simultaneously fostering a thriving film and television ecosystem.
**Editor:** Given the decline in production levels in the U.S., especially in light of recent strikes, how do you feel this federal incentive can revitalize the industry?
**Rep. Adam Schiff:** By implementing this incentive, we can create a more attractive environment for filmmakers and encourage them to keep their productions here. Revitalizing our industry means not just supporting jobs but also reinforcing the U.S. position as a leader in storytelling and creativity on the world stage.
**Editor:** Thank you, Rep. Schiff, for your insights. It will be interesting to see how this initiative progresses as you prepare for your potential Senate run.
**Rep. Adam Schiff:** Thank you for having me. I look forward to continuing this important conversation.
