Entertainers Jon Voight, Sylvester Stallone, and various entertainment groups advocate for tax benefits to President Trump
Twisting the Tinsel Town Tango:
Signing Seals and Delaling with Dollars: Jon Voight, Sylvester Stallone, and co join forces in a letter to Trump, requesting tax breaks to propel film & TV production back home
In a marathon of power moves this week, Hollywood heavyweights have banded together in a delegation of sorts. The legendary duo, Jon Voight and Sylvester Stallone have teamed up with an assortment of entertainment industry bigwigs to pen a missive to President Trump. The purpose? To convince him to support tax measures and a federal tax incentive that could bring film and television production back to the good ol' USA.
The document, which has been publicly revealed, boasts signatures from household names as well as those from all the major Hollywood unions and trade groups. The likes of the Motion Picture Assn., Producers Guild of America, and Independent Film & Television Alliance are all on board, indicating that the support for this movement is wide and varied.
"Bringing production back to the United States requires a grand strategy and multifaceted policy adjustments ... Alongside these immediate changes, we need long-term initiatives such as implementing a federal film and television tax incentive," the letter lays out.
The Hollywoodlywood Hustle
Amidst the bustling schedules and coffee-fueled dealings of the Motion Picture Assn., the issue of President Trump's tariffs and Jon Voight's aid to Tinsel Town were central topics at a recent meeting. White House spokesperson Kush Desai issued a statement, stating, "Official policy positions will be articulated by President Trump alone." Despite this, Desai acknowledged that there's ongoing dialogue between the administration and industry groups as well as the Hollywood ambassadors.
In the this missive obtained by The Times, the groups express their endorsement of Trump's proposition of a new 15% corporate tax rate for domestic manufacturing activities, with a prototype from the suspended Section 199 of the federal tax code serving as a foundation. The groups claim that under this older provision, film and TV productions crafted in the U.S. qualified as domestic manufacturing, making them eligible for those tax perks.
The letter petitions Trump to extend Section 181 of the federal tax code, along with lifting the spending limits on the tax-deductible qualified film and TV production costs. The groups also campaign for the reintroduce of the ability to carry back losses, which they believe would contribute to greater financial stability for production companies.
The tax initiatives, particularly Sections 199 and 181, have long been strategic interests for Hollywood, according to two anonymous sources familiar with the situation. The assembly of the letter reportedly happened over the weekend, with the aim of presenting different measures aimed at boosting domestic production.
The Wages of Obligation
Susan Sprung, Chief Executive of the Producers Guild of America, shares the sentiment that any assistance provided to help producers manage their budgets is crucial: "In a dreamscenario, we'd want a federal tax incentive, in addition to these tax provisions, but we're here to champion making it as simple as possible to produce in the United States and as affordable as possible."
The past week has been filled with chaos in Tinsel Town, thanks to Trump's initial suggestions of a 100% tariff on films manufactured abroad, followed by California Governor Gavin Newsom's call for a $7.5-billion federal tax incentive to maintain more productions stateside. These discussions on the federal level occur while states are upping their own film and TV tax credits to compete with one another and other countries.
No Time for Slackers
Last week, New York Governor Kathy Hochul signed the state's budget, increasing the film tax credit cap to $800 million per year, marking a surge from $700 million. New York's program offers a series of incentives, like $100 million for independent studios and rewards for companies that produce a minimum of two projects in New York with a commitment to a minimum of $100 million in qualified spending. The program extends through 2036, making it attractive to TV producers keen on knowing the longevity of filming locations when embarking on a series.
New York has been experiencing sluggish production, substantiating the need for this financial boost. Michael Hackman, CEO of Hackman Capital Partners, congratulates the move, pointing out that the rise from New York might encourage California to increase its own film and TV tax credit program further. Last year, Newsom advocated increasing the annual amount allocated to California's film and TV tax credit program from $330 million to $750 million.
Currently, two bills are traversing the California legislature, aiming to expand state incentives, including increasing the maximum tax credit to cover up to 35% (or 40% in regions outside the Greater Los Angeles area), along with enlarging the array of productions qualifying for incentives.
So there you have it! The entertainment industry is chomping at the bit to return production to the U.S., and they're making their voices heard to the highest echelons of power. Let's see how things shake out in the high-stakes Tinsel Town game of politics!
Further Watching
Trump Introduces 100% Tariffs on International Films: A Shock to Studios Everywhere
Hollywood's Mixed Feelings on Trump's Movie Tariffs Idea
Why Newsom's Hollywood Dream Might Never Take Flight
Behind the Scenes
The current state of federal tax incentives for film and TV production in the United States revolves around ongoing advocacy to revive and reinforce various provisions, particularly Section 199. Industry groups, such as IATSE and the Directors Guild of America, are actively advocating for the restoration of this provision to strengthen the competitive edge of the U.S. market[1][4].
Some of the significant developments are unfolding in New York and Pennsylvania:
- New York State has recently taken substantial strides in enhancing its film and TV production tax incentives in the 2025-2026 budget. Key steps include:
- Boosting the annual film tax credit cap to $800 million, an unprecedented amount in the state's history, and extending the program through 2036.
- Discarding the tiered payment system for credits and instantly issuing them within the taxable year of allocation.
- Introducing a "Production Plus" bonus of an additional 10% credit for companies submitting significant qualified production costs ($100M+).
- Developing a new Empire State Independent Film Production Credit, offering a $100 million annual cap and further incentives for in-state labor and activities.
- Eliminating the $500,000 cap on above-the-line compensation, permitting full claims on qualified wages that make up 40% of total spending.
- Rejecting proposed withholding taxes on loan-out company payments, maintaining the more advantageous conditions for film workers and producers in the state[2][3].
- Pennsylvania is thinking about increasing the film tax credit cap from $100 million to $125 million for FY2025–26, with local backing for even higher levels (up to $300 million), addressing the frequent depletion of funds that hinders production demand[2].
The entertainment industry advocates for:
- Reestablishing Section 199 at the federal level, which would enhance competitiveness by offering tax relief to companies producing domestically, thereby keeping production in the United States and sustaining jobs[1].
- Continued expansion and stability of state-level incentives, exemplified by New York's recent legislative actions, which industry groups applaud as models to maintain and grow domestic production[2][3].
- Federal advocacy comparable to what was historically accomplished through Section 181, a previous federal tax incentive expanded to cover up to $15 million of production expenses for all U.S. films and TV productions, helping to stimulate domestic production[4].
In sum, the federal incentive landscape focuses on reviving and possibly expanding tax provisions like Section 199, while states like New York are aggressively refining their own incentive programs. The entertainment industry pushes for these measures to ensure that film and TV production remains competitive and flourishes in the United States[1][2][3][4].
- The legendary actors Jon Voight and Sylvester Stallone, alongside other Hollywood heavyweights, have banded together to write a letter to President Trump, advocating for tax measures and a federal tax incentive to bring film and television production back to the USA.
- The document, which includes signatures from well-known names and major Hollywood unions and trade groups, suggests an integrated strategy and necessary policy adjustments, including the implementation of a federal film and television tax incentive.
- During a meeting at the Motion Picture Assn., discussions centered around President Trump's tariffs and Jon Voight's support for Tinsel Town, with the groups expressing their endorsement of Trump's proposal for a new 15% corporate tax rate for domestic manufacturing activities.
- The letter also campaigns for the extension of Section 181 of the federal tax code, the lifting of spending limits on tax-deductible qualified film and TV production costs, and the reintroduction of the ability to carry back losses to provide greater financial stability for production companies.
- California Governor Gavin Newsom has called for a $7.5-billion federal tax incentive to maintain more productions stateside, as the discussions on the federal level take place while states increase their own film and TV tax credits to compete with one another and other countries.
- New York has increased its film tax credit cap to $800 million per year, offering incentives like a $100 million fund for independent studios and rewards for companies that produce a minimum of two projects in New York with a commitment to a minimum of $100 million in qualified spending.
- Two bills are currently traversing the California legislature, aiming to expand state incentives, including increasing the maximum tax credit to cover up to 35% (or 40% in regions outside the Greater Los Angeles area), along with enlarging the array of productions qualifying for incentives, in an effort to encourage the return of production to the U.S.
