California Legislators Urged Federal Entertainment Tax Credits
State lawmakers requested congressional action to approve federal tax credits for domestic film and television productions.
Updated on Sept. 30, 2026 in Legislative Policy
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Senator Suzette Martinez Valladares and a group of California legislators sent a letter to federal leaders calling for the passage of the Motion Picture, Television and Entertainment Revitalization Act. The proposal aims to incentivize domestic production to prevent the loss of jobs and paychecks to overseas markets.
Why it matters
Lawmakers contend that federal intervention is necessary to maintain a competitive domestic industry, preventing production flight where entertainment projects relocate to countries with lower costs.
The proposed federal bill offers a 20% tax credit for productions spending at least $1 million with 75% of photography completed in the U.S. Independent or rural projects may qualify for credits reaching 30%.
The players
Suzette Martinez Valladares
She is a California Senator who led the legislative group in petitioning federal leaders for the enactment of the Motion Picture, Television and Entertainment Revitalization Act.
Mike Johnson
He is a federal leader who received the correspondence from California legislators regarding the requested tax credit legislation.
John Thune
He is a federal leader who received the correspondence from California legislators regarding the requested tax credit legislation.
The details
The letter signed by legislators, including co-authors of AB 1138, was directed to Mike Johnson and John Thune. The federal tax incentive is intended to function as an additional layer of support alongside current state-level programs.
Timeline
September 28, 2026: California legislators sent the formal request to federal leaders.
Political Context
Opponents of federal production subsidies often cite concerns regarding the use of taxpayer funds to support private, for-profit corporate entities. Critics frequently argue that such measures create an uneven playing field for different industries and may not guarantee a long-term return on investment for the national economy.
If enacted, the federal tax credit could increase local production activity, potentially creating more jobs for film industry workers and supporting small businesses that provide services to film sets. Residents may see more local filming projects, which could have ripple effects on local economies and service industries throughout the state.
The takeaway
This effort highlights a coordinated strategy by state lawmakers to leverage federal fiscal policy to protect local labor markets from international competition. Industry stakeholders often monitor these requests as indicators of the legislative appetite for expanding federal corporate tax incentives.
Further reading
For additional context on how state leaders influence federal action, visit the Legislative Policy section.
More information
Read the copy of the sent letter to see the full details of the request.
Source note: This article includes information reported by SCVNews.
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Should the federal government offer tax incentives to keep film and television production in the U.S.?
