The United States government is facing calls to implement federal film tax incentives as industry leaders look to reverse the trend of blockbuster productions moving abroad.
At the opening of the American Film Market (AFM), the push to keep major projects on domestic soil became a central point of discussion among studio executives and producers, who argue that the current system encourages “runaway productions” that benefit foreign economies.
Josh Rogin, Senior Vice President of Federal Government Affairs at the Motion Picture Association (MPA), identified actor Tom Cruise as a primary example of how Hollywood currently contributes to international markets rather than the U.S. economy, according to detikcom.
“When Tom Cruise makes a film in France, all the jobs created there belong to France. All the taxes he pays go to the French government. Our current system indirectly supports ‘runaway productions’ (moving production abroad). We need to bring Tom Cruise back to make films here!” said Josh Rogin.
Industry data indicates that the domestic share of film and television production for local audiences has fallen to approximately 39%, down from 60% a few years ago. While dozens of other countries offer competitive tax regulations to attract Hollywood studios, the United States currently lacks a federal film incentive program entirely.
Despite global competition, AFM executives said that the U.S. does not necessarily need to offer the largest incentives in the world. Instead, they are advocating for regulations that are competitive enough to stimulate the domestic film economy, increase local job opportunities, and secure tax revenue within the country.
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