Rep. Chu Responds to Film Unions’, Studios’ Call for Expanded Film Incentives

WASHINGTON, D.C. – Last week, President Trump announced his intention to impose tariffs on foreign films, a proposal which could have devastating impacts on the American film industry as well as all American service exports. Earlier this week, film and television unions and studios joined together with the Trump administration’s “Special Ambassadors” to Hollywood in sending a letter to President Trump urging support for expanded tax incentives for U.S. film and TV production. Rep. Judy Chu (CA-28), a long-time proponent of federal incentives including the Section 181 federal tax deduction for domestic film and television production, released the following statement: 

“President Trump identified a serious and growing problem: that film and television production has been moving out of the United States and to the more than 80 countries that offer tax incentives for productions. This trend has hurt not just my district in Southern California, but communities across the country that have hosted film shoots, studios, prop manufacturers, and the thousands of good-paying jobs that go into making a movie or TV show a reality. Unfortunately, the President’s proposal to impose tariffs on foreign films is ill-conceived and would do more harm than good. 

“Instead, we need to invest in domestic incentives that will make America more attractive for film productions so that we can bring these jobs back to the United States and maintain our economic and cultural leadership in entertainment. That means extending and expanding Section 181, the only federal tax incentive specifically for domestic film and television production. Section 181 is set to expire at the end of this year, and as a Member of the House Ways and Means Committee, I am working in a bipartisan manner to extend and improve this deduction. We must also think bigger and create new credits and incentives that will put us on equal or better footing with the countries that have been able to attract productions that would otherwise have happened here in the United States. 

“I urge the President to back away from his dangerous threat of film tariffs and instead work with me and my colleagues in Congress on incentives that will restore this great American industry.”