Sen. Adam Schiff (D-CA) weighed in on Donald Trump’s proposed 100% tariff on movies produced in other countries, warning of unintended impacts while calling for a more robust federal film tax incentive.
In a statement, Schiff said, “I share the administration’s desire to bring movie making back to the United States. While blanket tariffs on all films would have unintended and potentially damaging impacts, we have an opportunity to work together to pass a major federal film tax credit to re-shore American jobs in the industry. I welcome the opportunity to work with the administration and my Republican colleagues to pass a globally competitive federal film incentive to bring back run-away production.”
Schiff backed the idea of a federal film tax credit last year, as he was in the midst of his campaign to the U.S. Senate.
The Motion Picture Association, representing major studios and streamers, has yet to weigh in on Trump’s announcement on Sunday that he was starting the process for the 100% tariff. The White House has since said that no final decision has been made, and Trump himself said that he was planning to meet with industry representatives and that “I wanted to make sure they’re happy with it.”
While some producers have warned of the impact of the tariffs, SAG-AFTRA today was more receptive to the idea. “We look forward to learning more about the specifics of the plan announced by the President and to advancing a dialogue to achieve our common goals,” said the union’s Duncan Crabtree-Ireland.
There is an existing federal tax incentive — known as Section 181 — but it is not a credit. It permits a 100% deduction for the first $15 million of a film of TV production’s cost in the year that they are incurred, rather than depreciated over time. Compared to the incentives offered by other countries, though, the U.S. incentive has had limited impact.
