Fighting the Flight: Senator Adam Schiff Proposes Federal Tax Incentives to Save American Film Production
The American entertainment industry is facing a critical turning point. For years, movie and television productions have migrated overseas, lured by aggressive tax incentives from foreign governments. To combat this “offshoring” of creativity and labor, U.S. Senator Adam Schiff (D-Calif.) is championing a new legislative push to establish a federal film tax incentive.
On March 20, 2026, Senator Schiff hosted a spotlight hearing titled “Lights, Camera, Competition”: Promoting American Film Production at Burbank City Hall. The event served as a rallying cry for the industry, bringing together experts and workers to highlight the urgent need for a globally competitive federal framework to keep production jobs on American soil.
The High Cost of Production Offshoring
The data presented during the hearing paints a sobering picture of the current state of Hollywood. The shift toward international filming isn’t just a trend. it’s a systemic loss of economic opportunity. Key statistics include:
- Job Losses: Los Angeles County lost more than 42,000 entertainment jobs between 2022, and 2024.
- International Shift: Last year, nearly half of all U.S. Films and scripted series were shot outside the United States.
- Studio Trends: In the last two years, Paramount Skydance and Warner Bros. Discovery combined for only 15 theatrical movies filmed within the U.S.
Senator Schiff argued that although state-level programs exist, they are insufficient. According to Senator Schiff’s official statement, state programs cannot substitute for a federal incentive capable of competing on a global scale.
Beyond Taxes: The Threat of Industry Consolidation
While tax incentives are the primary focus, the hearing also addressed the “unprecedented consolidation” currently shaking Hollywood. A major point of concern is the proposed merger between Paramount Skydance and Warner Bros. Discovery.
Industry advocates and Senator Schiff warned that such a merger could trigger further layoffs and negatively impact the global media market, small businesses, and consumers. The merger’s potential impact on the workforce in California and across the U.S. Remains a central part of the conversation as the industry seeks stability.
The Path to Bipartisan Legislation
Senator Schiff has already drafted a bill to create the federal incentive, but he emphasizes that for the measure to succeed, it must be bipartisan. He is currently working to secure Republican co-sponsors to ensure the bill has the broad coalition of support necessary to pass through Congress.
To underscore the human cost of the industry’s decline, the hearing featured testimony from IATSE President Matt Loeb and Noah Wyle, star of The Pitt, both of whom spoke on the immense value of production jobs and the necessity of federal intervention.
Key Takeaways: The Push for a Federal Film Incentive
- Goal: Create a federal tax incentive to stop the offshoring of film and TV production.
- Urgency: Driven by the loss of 42,000 jobs in L.A. County (2022-2024).
- Strategy: Moving beyond state-level subsidies to a globally competitive federal standard.
- Additional Concerns: Addressing the impact of the Paramount Skydance and Warner Bros. Discovery merger on the workforce.
Looking Ahead
The future of American film production now rests on whether lawmakers can move from “reacting” to being “ahead of the curve.” With a drafted bill on the table and growing industry support, the focus shifts to the halls of Congress. If successful, this federal incentive could reverse the exodus of productions and restore the U.S. As the undisputed production capital of the world.
Keep reading