Movies

Jon Voight, Sylvester Stallone and entertainment groups lobby Trump for tax provisions

BBG News

Actors Jon Voight and Sylvester Stallone, often referred to as representatives of Hollywood, teamed up with various entertainment industry associations this week to submit a letter to President Trump. This letter encourages him to endorse tax policies and a federal tax credit that would potentially lure film and television production back into the United States.

The letter bears signatures not only from Voight and Stallone, but also from leading Hollywood associations like the Motion Picture Association, the Producers Guild of America, and the Independent Film & Television Alliance. This shows that it has extensive backing from the entertainment industry as a whole.

The letter suggests that increasing domestic production calls for a unified nationwide strategy, comprehensive policies, and long-term projects like enacting a federal tax incentive for films and television.

Hollywood Inc.

On Friday morning, the Motion Picture Association convened with its members to discuss strategies in addressing President Trump’s tariffs and actor Jon Voight’s initiative aimed at supporting Hollywood.

In the letter acquired by The Times, the organizations express their endorsement of President Trump’s plan to establish a 15% corporate tax rate specifically for domestic manufacturing operations. This proposal is based on an older provision from Section 199 of the federal tax code.

Previously, under Section 199, American film and television productions were categorized as domestic manufacturing and entitled to a tax break. However, this provision expired in 2017, as the letter mentions.

Additionally, the letter urges Trump to prolong Section 181 of the federal tax code, enhance limits on tax-deductible expenses for film and TV productions that qualify, and restore the option to offset losses, a measure the organizations argue would provide production companies with greater financial security.

Two individuals knowledgeable about the situation have confirmed that the tax provisions, specifically Sections 199 and 181, are long-standing demands of the entertainment industry. They added that a letter drafted over the weekend outlines various strategies, all aiming to boost local production. One source explained this goal is what unites the proposed measures.

Susan Sprung, the executive director of the Producers Guild of America, emphasized that anything we can do to aid producers in managing their budgets is crucial. Ideally, she’d like to see a federal tax incentive complemented by existing tax benefits. However, her main goal is to lobby for an environment that encourages production within the U.S., making it both easy and affordable.

Last week, Trump sparked turmoil within the entertainment sector by proposing a 100% tariff on foreign-made films. Later, California Governor Gavin Newsom entered the discussion, advocating for a $7.5 billion federal tax break to maintain more productions within U.S. borders.

At the federal level, proposals are emerging as states boost their own film and television tax incentives in order to maintain a competitive edge against one another and foreign countries. Just last week, New York Governor Kathy Hochul approved the state budget, raising the annual cap for its film tax credit to $800 million, an increase from the previous $700 million.

Under the enlarged tax break scheme, a sum of $100 million is allocated specifically for indie film studios. Furthermore, businesses producing not just one but two or more projects within New York and agreeing to invest a minimum of $100 million on eligible expenses will receive extra incentives.

The duration of the program has been expanded up until 2036, offering assurance to potential television producers that their filming site remains consistent should they decide to undertake a series.

In simpler terms, Michael Hackman, CEO of Hackman Capital Partners (a company that owns two film/TV studio properties in New York, as well as multiple ones in California), stated that the recent production boost in New York was beneficial for the state. Additionally, he suggested that this increase could potentially lead California to expand its own film and TV tax credit program.

As a passionate cinephile living in sunny California, I was thrilled last year when Governor Newsom announced an increase in funding for our state’s film and television tax credit program. What started as a $330 million allocation has now grown to a staggering $750 million, which is truly music to the ears of filmmakers everywhere! This increased support means more opportunities for storytellers like myself to bring our visions to life on the silver screen. I can’t wait to see what this boost in funding will bring for California’s thriving film industry!

At present, two proposals are making their way through California’s legislature with the aim of broadening the state’s incentive program. These changes could potentially increase the tax credit to a maximum of 35% (or even 40% in regions beyond Greater Los Angeles) for eligible expenses. Furthermore, these bills seek to extend the range of productions that may qualify for such incentives.

As a movie enthusiast, I’m thrilled to share my insights about the film industry landscape here. We boast an exceptional infrastructure, a rich pool of talented professionals – we truly have all the right ingredients for cinematic success. However, to keep these productions within our borders, our state legislature needs to step up its game in offering competitive tax credits.

If they don’t, I fear that more and more film crews will pack their bags and head north to New York, or venture off to other attractive locations. It’s a tough call, but the ball is in their court to make our state an even more appealing destination for movie magic.

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2025-05-13 01:01

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