President Trump pushed for a federal tax credit on Monday to aid the production of films in the United States, the type of government support that a beleaguered Hollywood has been clamoring for in recent years.
Although dozens of states subsidize film and television production, the federal government has never offered a nationwide tax incentive as several other countries do. Because productions have fled Los Angeles for places like Australia, Britain and Hungary, labor unions, lobbying groups and politicians on both sides of the aisle have rallied around the idea of a federal program they say would help bring jobs back.
On Monday, Mr. Trump took up the baton, writing on social media that he was backing a federal incentive, and that work to craft a bipartisan bill was already underway.
Mr. Trump emphasized that film production had moved to Canada and other countries and said that the exodus was “hurting California very badly.” He asked that “Republicans and Democrats get together” to write and approve legislation that would keep jobs in the United States.
“It can be done quickly, accurately, efficiently and, importantly, will benefit ALL of America,” Mr. Trump wrote. “What we watch on the Silver Screen should be made in what was once the Movie and Motion Picture Capital of the World. Let’s get this done!”
Economists who are critical of giving taxpayer money to Hollywood studios say that there is little financial return in doing so and that governments are in a race to the bottom.
The Motion Picture Association, which represents the biggest Hollywood studios in Washington, has vehemently supported film tax credits, arguing that they create vast economic benefits. The association quickly issued a statement on Monday cheering the president’s social media post.
“A federal incentive would be a landmark step toward bringing more production to local communities in all 50 states, strengthening our nation’s economy and making our country a more competitive place to produce, create and tell great stories,” the association’s chief executive, Charles Rivkin, said. “We applaud President Trump’s support for this vital action.”
Shortly before Mr. Trump’s inauguration in 2025, he named the actors Mel Gibson, Sylvester Stallone and Jon Voight as “special ambassadors” to strengthen work in Hollywood. Last year the president proclaimed in a social media post that he would impose a 100 percent tariff on movies produced outside the United States.
Technically speaking, most movies shown in American cinemas are produced in the United States, where scripts are written, preproduction planning handled, principal actors cast and footage edited. But Hollywood has increasingly turned to foreign locales for filming because, as with traditional manufacturing, it is often considerably cheaper.
The combination of large government subsidies and lower labor costs has been enough to pull Disney, Warner Bros., Universal Pictures, Netflix and Amazon far from Los Angeles. As a result, work has evaporated for thousands of middle-class film workers in the United States, including camera operators, set decorators, lighting technicians, makeup artists, caterers and electricians.
When framed as a jobs initiative, a federal film tax credit can attract bipartisan support. Gov. Gavin Newsom of California, a Democrat, has said he wants to team up with the Trump administration to create a $7.5 billion federal film tax credit. Senator Adam Schiff, Democrat of California, has said his office is working on a federal film incentive proposal.
“I am in strong agreement with the President,” Mr. Schiff wrote online on Monday alongside a screenshot of Mr. Trump’s post. “Congress should immediately take up and pass a federal film tax incentive to bring back these good-paying jobs that we’ve lost to other countries.”
Representative Laura Friedman, a Democrat who represents Hollywood in Congress, said in a statement that she agreed tax incentive legislation needed to pass quickly. “We still have the best crews on the planet,” she wrote. “It’s time we made it possible for them to stay where they belong: in America.”
Last year Mr. Voight; Steven Paul, his longtime manager; and Mr. Paul’s business partner Scott Karol began meeting with Mr. Trump and shared their plans to increase domestic film production. The group met a second time in February. And Mr. Trump opened his post on Monday by saying he had “just had a GREAT and very interesting meeting” with Mr. Voight.
A spokesman for Mr. Paul did not immediately respond to a request for comment.
But in an interview in May, Mr. Karol said he and his team had drafted legislation for a federal incentive and submitted it to the White House officials last year. The incentive they drew up, he said, would have provided a 20 percent transferable credit that could be stacked atop a state incentive.
Brooks Barnes and Zachary Small contributed reporting.
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