America has long been the world leader in film and television. But as more and more foreign films are being produced, that leadership is under serious threat.
with Section 181 — the only federal tax incentive designed to keep production in the U.S. — is currently set to expire at the end of this year, leaving us at risk of losing more jobs and projects to foreign markets whose governments offer far more competitive incentives.
When production moves overseas, American workers, small businesses, and communities from New York to California pay the price. We are leading a bipartisan effort to expand and strengthen Section 181 so that our film industry survives. This bipartisan legislation would renew this deduction for five years and also double the current deduction limit, giving producers certainty about continuing to invest at home.
The economic impact of film and television is undeniable: the Motion Picture Association reports that the film and television industries Support 2.32 million jobs, pay $229 billion in annual wagesAnd sustaining more than 122,000 businesses across America, its impact is especially profound in our congressional districts. Alone in New York City, the latest Film and television industry economic impact study shows The sector supports 185,000 jobs, generates $18.1 billion in wages, and contributes $81.6 billion to total output.
In Los Angeles County, the global center for film and television and home to prestigious studios such as Disney, Paramount, Universal, Warner Bros. and others, the industry supports more than 325,000 jobs, generates $38.5 billion in wages, and contributes $117.2 billion in economic impact. Actors, production crews and local businesses, as well as millions of Americans, depend on domestic film and television production. Entertainment is a key indicator of the strength and resilience of a community and nation.
Productions such as “Ray Donovan,” “Gotham,” “Boardwalk Empire,” “Blue Bloods” and “Fallout” in New York’s 11th District, as well as “Shrinking,” “The Mentalist,” “The X-Files,” “Mad Men” and “The Good Place” in California’s 28th District have not only entertained audiences, but also promoted economic growth and Has supported hundreds of businesses and families in Staten Island. Brooklyn, and in cities like Pasadena and Altadena in Southern California. Together, we have seen how this industry boosts local economies, creates good-paying jobs and showcases American talent across the country. Unless Congress acts before the Section 181 tax cuts expire at the end of this year, we risk losing these opportunities.
The importance of this industry is clear to each of us – two sitting congresswomen, and a renowned actor and film industry leader in the entertainment capitals of the world. We know firsthand how difficult it is to compete with foreign tax incentives. Often, manufacturers are forced to move production abroad, leaving American talent, workers, and communities behind. create actHelps level the playing field to ensure our producers, directors, crew and creative professionals can continue to create world-class entertainment here in America.
This is not a partisan issue – protecting American jobs and keeping the entertainment industry strong is a goal shared by both Republicans and Democrats. With this critical stimulus set to expire at the end of this year, it is important for Congress and our industry leaders to come together, as we have, so that our strong entertainment industry remains competitive and continues to benefit American workers and bring joy to audiences around the world for years to come.
Nicole Malliotakis represents New York’s 11th Congressional District and Judy Chu represents California’s 28th Congressional District in the U.S. House of Representatives.Jon VoightHe is a presidentially appointed special ambassador to Hollywood.
