Source: United States House of Representatives – Representative Judy Chu (CA2-27)
Rep. Judy Chu Introduces Bipartisan, Bicameral Bill to Support U.S. Film, TV, and Sound Recording Production
Bill would extend the Section 181 tax deduction, the only federal tax incentive for domestic film, television, and sound recording projects, which is set to expire at the end of this year.
WASHINGTON, D.C. – Rep. Judy Chu (CA-28), along with Rep. Nicole Malliotakis (NY-11), Senators Raphael Warnock (GA) and Marsha Blackburn (TN), introduced the Creative Relief and Expensing for Artistic Entertainment, or ‘‘CREATE” Act, a bill to extend and strengthen Section 181, the only federal tax incentive specifically targeted at supporting U.S.-made films, television, and sound recordings by allowing 100% deduction of production costs in the same year those costs are paid or incurred.
Without congressional action, the Section 181 deduction will expire for productions that begin filming after December 31, 2025. For years, film and television production has been leaving Southern California and the United States as other countries offer more generous incentives. According to FilmLA, the Greater Los Angeles area saw a nearly 20% decline in film and TV production in 2023. While the State of California recently more than doubled its Film and Television Tax Credit Program, the federal government lags behind. And without an extension of the 181 deduction before the end of the year, the U.S. will move backwards by losing the only existing federal incentive that helps keep these productions here in America.
As Chair of the Creative Rights Caucus, Rep. Chu continues to be a strong advocate for those employed in the arts entertainment industry. This Congress, she also introduced H.R. 721, the Performing Artist Tax Parity Act (PATPA), to once again allow working class actors and performers to deduct the costs of work-related expenses.
“I’m so proud to introduce the CREATE Act, bipartisan, bicameral legislation to support good-paying, domestic creative jobs by extending and strengthening Section 181, the only federal tax incentive specifically designed for film, television, and sound production here in the United States,” said Rep. Judy Chu. “With Section 181’s expiration fast approaching in just a few months, it’s so critical to not just extend this deduction, but strengthen it. Our bill would do just that and would ensure that the United States continues to invest in the incredible talent that exists in my district in Southern California and across the country.”
“I join Rep. Judy Chu in introducing this bipartisan legislation aimed to help keep film and television production here in the U.S. especially in New York, a major entertainment hub with studios in both Brooklyn & Staten Island,” said Rep. Nicole Malliotakis. “New York’s film and television industry has generated thousands of jobs and promotes economic activity in our district through series like Ray Donovan, Gotham, Boardwalk Empire, Blue Bloods, and Fallout to name a few. Our effort has earned the support of President Trump and industry leaders like Jon Voight, making clear just how important it is to keep production companies from leaving our community and country for overseas incentives.”
“I want to thank Senators Blackburn and Warnock and Representatives Malliotakis and Chu for introducing imperative jobs legislation to reauthorize Sec. 181, extending the program for five years and raising the deduction limits. We must ensure this vital legislation passes Congress and is signed into law by President Trump. America’s great film and television industry needs and deserves our support at this critical time,” said Special Ambassador Jon Voight
“The Independent Film & Television Alliance® (IFTA®) strongly supports introduction of legislation by Representatives Chu and Malliotakis to extend Sec. 181 of the Internal Revenue Code, which provides an incentive for independent film and television producers to shoot their films in the U.S,” said Jean Prewitt, IFTA’s President and CEO. “This provision, first enacted in 2004, protects U.S film and TV production jobs, which make a major contribution to the U.S economy in states throughout the country. We are very appreciative of Representatives Chu and Malliotakis’s leadership on this important legislation”.
“This legislation reflects a bipartisan, bicameral effort to strengthen the U.S. film and TV industry, which proudly supports more than 2.32 million jobs nationwide,” said Charles Rivkin, Chairman and CEO of the Motion Picture Association (MPA). “Extending and strengthening Section 181 will lead to more domestic film and TV production, and more American jobs. The MPA applauds Senators Blackburn and Warnock, alongside Representatives Malliotakis and Chu, for introducing the bill in their respective chambers and looks forward to Congress enacting this vital legislation.”
“As one of the leading advocates in the initial fight for the creation of the Section 181 tax deduction as part of the American Jobs Creation Act of 2004, we wholeheartedly support the proposed legislation to improve and extend its provisions. In the years since its initial passage, foreign countries have become increasingly aggressive in offering financial incentives to lure American film and television productions—and the good paying middle-class jobs they create—at the expense of our members and other industry workers. Extending and expanding Section 181 as this bill does is a vitally important step in keeping film and television production jobs in America,” said Russell Hollander, Directors Guild of America (DGA) National Executive Director
“We commend Representatives Chu and Malliotakis for their leadership in the effort to extend Section 181, the only federal tax incentive for domestic film and TV production, to 2030. That incentive is scheduled to expire this year. At the same time, governments around the world are creating and increasing their own film and TV production tax credits in an effort to draw American film production overseas at great cost to our members and the other workers in this industry, as well as the communities they live and work in. We must protect our creative economy and we must do so with urgency,” said SAG-AFTRA National Executive Director & Chief Negotiator Duncan Crabtree-Ireland.
“The entertainment industry supports hundreds of thousands of good-paying union jobs in the US. Extending and expanding Sections 181’s deduction for locally-produced film and television costs will help to keep more of these jobs here. WGAW thanks Congressmember Chu and Congressmember Malliotakis for their support and leadership to keep film and television work in America,” said Meredith Stiehm, the President of the Writers Guild of America West
“The Teamsters are proud to endorse bipartisan legislation introduced by Representatives Chu and Malliotakis that will strengthen the American film and television industry through common sense tax reforms,” said Teamsters General President Sean M. O’Brien. “Teamsters are being threatened by unfair tax and labor incentives that ship film and TV production jobs overseas. We need to be aggressive with a comprehensive solution to reverse the damage already done in this distinctly American industry. This bill is just the first step in expanding domestic film and TV jobs while protecting high union standards, benefits, and wages.”
“Section 181 is set to expire at the end of this year, ending an important incentive for local film and television production in the U.S. Your efforts to extend 181 will help a beleaguered industry continue to improve and increase American film and television production.
This extension will not only benefit film and television, but also music and theatrical productions based here in the United States – supporting local economies across the country. These productions will create local jobs and robust economic activity in all 50 states.
Your efforts will encourage local production and keep jobs here at home. We salute your leadership on this hugely impactful effort,” said Ruth Vitale, CEO of CreativeFuture.
“This bill will protect and extend the important victory we achieved this year for independent music through the HITS Act. The Recording Academy appreciates Senators Blackburn and Warnock and Reps. Chu and Malliotakis for their commitment to the creative community and we look forward to working with them to advance this legislation,” said Todd Dupler, Chief Advocacy & Public Policy Officer, Recording Academy.
“The Producers Guild of America (PGA) represents over 8,400 producers across film, television, and emerging media and strongly supports the revision and extension of Section 181, an important tool that allows producers to access a meaningful incentive that helps preserve high-quality American jobs and keeps production in the United States amid increasing global competition. We commend Representatives Chu and Malliotakis and Senators Blackburn and Warnock for their collective leadership and bipartisan commitment to this important legislation,” said Stephanie Allain and Donald DeLine, Presidents, Producers Guild of America (PGA).
“With sound recording production finally eligible for the Section 181 domestic production incentive, A2IM is proud to support this bill, which would help independent labels support more great artists as they contribute to economic growth. America leads the globe in creating film, television, theater and music that entertains and inspires the rest the world. Congress can make sure we have every tool to continue this important work by extending this common sense provision,” said Dr. Richard James Burgess, President and CEO, American Association of Independent Music.
“RIAA applauds Senators Blackburn and Warnock and Representatives Malliotakis and Chu for their leadership strengthening and extending Internal Revenue Code Section 181 including the newly enacted HITS Act, which will boost America’s music economy by allowing production expenses to be deducted when they are incurred. Without Congressional action, the HITS Act and all of Section 181 will expire this year, unnecessarily putting tens of thousands creative community jobs at risk and dragging down one of America’s strongest export sectors,” said Mitch Glazier, Chairman & CEO, Recording Industry Association of America (RIAA).
“FilmUSA applauds the leadership of Senators Marsha Blackburn and Raphael Warnock, and Representatives Judy Chu and Nicole Malliotakis, for championing this important legislation to extend and strengthen Section 181. Their bipartisan commitment reflects a growing recognition that our domestic film and television industry is vital to American culture, jobs, and global competitiveness. This bill is a meaningful step toward a more comprehensive strategy to stabilize and grow U.S. production. We look forward to continuing the work to ensure a thriving creative economy in every corner of the country.”
“We applaud Senators Blackburn and Warnock and Reps. Malliotakis and Chu on the introduction of this bipartisan bill to extend Tax Code Section 181 beyond 2025, which will help ensure the resiliency, competitiveness, and economic potential of the U.S. TV, film, and music industries. This domestic production incentive is especially valuable for TV series and lower budget movies, and benefits American workers and small businesses in communities across the country. Continuing Section 181 is a welcome step to encourage more television and film production, more investment, and more jobs on U.S. soil,” said NCTA – The Internet & Television Association.
“The Coalition for American Production (CAP)—a nationwide alliance of businesses and professionals including service providers, manufacturers, rental houses, and technical suppliers supporting U.S. film and television production—is committed to preserving and strengthening the industry as a vital pillar of American culture and economic vitality.
We applaud Senators Blackburn and Warnock, along with Representatives Chu and Malliotakis, for introducing the CREATE Act, a vital piece of legislation that extends and expands the Section 181 tax deduction for domestic film and television production. At a time when escalating costs and aggressive foreign tax incentives are drawing productions abroad, this bill helps level the playing field for American creators.
Section 181 fosters U.S.-based production, catalyzes local economic growth, creates high-quality American jobs, and preserves the cultural resonance of stories made in America. CAP is committed to working with Congress to advance this essential measure and to champion policies that keep film and television production firmly rooted in communities across the United States.”
To read the full bill text, click here.
###