Schiff Pushes 15% Federal Film Credit as Los Angeles Loses 48,000 Production Jobs
Updated
Updated · Variety · Jun 16
Schiff Pushes 15% Federal Film Credit as Los Angeles Loses 48,000 Production Jobs
2 articles · Updated · Variety · Jun 16
Summary
A draft bill from Sen. Adam Schiff would create a 15% federal tax credit for film and TV labor costs, but he has not introduced it as Republicans wait for a White House signal.
The push reflects a deep production shift since 2022: the U.S. has lost 73,000 production jobs, with roughly two-thirds in Los Angeles, as foreign and state incentives outmatch California on cost and flexibility.
California doubled its program to $750 million in 2025, yet producers say it still trails rivals because it is capped and excludes above-the-line pay that countries such as the U.K. subsidize aggressively.
Studios increasingly keep stories set in Los Angeles or the U.S. while filming elsewhere—Atlanta, Vancouver, Winnipeg, London, Romania and Australia—because lower labor costs, exchange rates and stacked rebates can decide whether projects get made.
That erosion is spreading beyond crews to restaurants, florists and other local businesses, sharpening calls for federal support as Hollywood argues its jobs and cultural influence deserve treatment similar to other subsidized U.S. industries.
Is Hollywood's exodus driven by foreign incentives, or are its own high costs and regulations the true culprit?
As AI-powered micro-dramas surge globally, can Hollywood survive the shift from blockbuster films to bite-sized content?
Is America losing its 'soft power' to nations that have mastered turning culture into a strategic asset?
Hollywood’s 30% Job Loss: Causes, Global Incentive Wars, and the Federal Tax Credit Solution
Overview
The U.S. film industry, especially in Los Angeles, is facing a major crisis with a sharp drop in jobs and production activity. By late 2025, Hollywood employment had fallen by 30%, and the number of shooting days in Los Angeles dropped by over 20%. This downturn is not just hurting production crews but also salaried staff in marketing, development, and accounting. Los Angeles’ share of global film and TV production has also declined, showing that the crisis is deep and widespread. These changes highlight the urgent need for new solutions to support the industry and its workers.