Protecting a Vital American Industry from Going Dark

The Heart of American Culture and Economy

The American film and television industry is more than just a source of entertainment; it acts as a powerful economic engine that supports hundreds of thousands of well-paying jobs, nurtures small businesses, and disseminates American culture on a global stage. From the glitz of Hollywood to the vibrant scenes in cities like Atlanta and New York, the industry has been a pillar of American identity and economic stability.

Yet, in recent years, this cornerstone of American culture faces an urgent threat from rising international competition.

The Challenge of Foreign Competition

Foreign governments have become increasingly adept at luring away American film and television productions through aggressive tax incentives and subsidies. These fiscal advantages have made it financially appealing for production companies to shoot films and TV shows abroad, shifting jobs and economic opportunities away from American workers. Films that are meant for initial release in the U.S. are now increasingly shot overseas, leaving American labor stuck in a shrinking industry.

Sadly, the impact of this exodus extends far beyond just actors and directors; it affects a broad spectrum of roles, from grips and gaffers to caterers and set designers. These are not just numbers on a spreadsheet; they represent thousands of families and communities grappling with economic hardship.

The Decline in Job Opportunities

According to reports from the International Alliance of Theatrical Stage Employees (IATSE), tens of thousands of jobs have been lost across the United States within just two years. The sound of applause has faded for many as they face the realities of unemployment or underemployment. Communities reliant on this creative sector are feeling the financial pinch, as local businesses catering to film crews and their families see a decline in revenue.

While some U.S. states have offered tax credits and incentives to enhance local production, the competition continues to intensify. The current strategies are simply not enough to prevent the migration of productions to countries that recognize the economic value these projects bring.

The Danger of Inaction

If this trend continues without a comprehensive federal policy response, the United States risks turning its back on a signature source of American culture and economic vitality. It’s crucial to remember that this crisis is not merely on the horizon; it’s already knocking at the door.

Federal Support: A Necessity

To counter this decline, IATSE is advocating for robust federal policy measures aimed at sustaining American film and television jobs. A cornerstone of this effort is the call for a Federal Film & TV Production Tax Incentive. A competitive labor-based incentive would serve as a crucial tool to encourage domestic production, thereby uplifting the industry and the workers within it.

Key Proposals Worth Exploring

1. Implement a Federal Film & TV Production Tax Incentive:
   A globally competitive incentive for U.S. production is essential. This should supplement existing state-level incentives, ensuring that productions remain in America and that American workers are prioritized.

2. Reinstate Section 199:
   The restoration of the Domestic Production Activities Deduction is vital. This would allow for tax relief for companies that produce films and TV shows in the U.S. using American workers, thus leveling the playing field against foreign competitors.

3. Extend Section 181 Expensing:
   This measure would help prevent further offshoring of production while preserving existing U.S.-based projects, especially smaller-budget films and television series.

4. Establish Fair Trade Practices:
   Any trade policy must ensure equitable competition for all IATSE members while also protecting the interests of Canadian counterparts. Fair competition will be critical as the industry finds its way back to robust health.

The Road Ahead

The road to revitalizing the American film and television industry must be paved with intentional and well-structured policies. It requires collaboration among multiple stakeholders—government officials, industry leaders, and labor unions—to brainstorm effective strategies that merge economic viability with cultural significance. In supporting these proposals, we can collectively ensure that this vital industry not only survives but thrives, safeguarding American jobs and culture for generations to come.