Trump Administration Explores 25 Percent Federal Film Tax Credit

A proposed federal production incentive, if enacted, would represent a significant shift in how the U.S. competes with foreign tax subsidy regimes for film and television production — with both...

Reality television personality Spencer Pratt stated in an August 8, 2026 post on the social platform X that he is working with President Donald Trump on a 25 percent federal film tax credit, describing the effort as aimed at returning film and television production to the United States. Pratt wrote that Trump is "very passionate about revitalizing the entertainment industry" and referenced competition from Canada and other countries offering competing production incentives. The post was reported by The Hill.

A federal film tax credit of 25 percent would mark a notable departure from the current federal tax treatment of film production, which is governed primarily by Section 181 of the Internal Revenue Code. Section 181 allows immediate expensing of qualified film and television production costs up to $15 million per project — a deduction mechanism distinct from a direct percentage tax credit. No legislative text, congressional sponsor, or official White House proposal had been publicly identified as of the date of this report.

The domestic film production incentive landscape is currently dominated at the state level. According to the National Conference of State Legislatures, more than 30 states maintain film tax credit or rebate programs. Canada's federal and provincial combined incentives frequently reach 25 to 40 percent of eligible production costs, a competitive disparity that U.S. production industry groups have cited in congressional testimony before the House Ways and Means Committee.

The White House Office of Legislative Affairs had not published any official statement, executive order, or legislative proposal related to a federal film tax credit as of August 8, 2026. Pratt ran as a candidate in the 2022 Los Angeles mayoral race; he did not advance past the primary, finishing outside the top two in the June 2022 general primary, per the Los Angeles County Registrar-Recorder results.

What remains unknown: whether a formal legislative proposal has been drafted, which member of Congress — if any — has agreed to sponsor such legislation, and what the projected 10-year revenue cost would be as scored by the Congressional Budget Office. A White House press briefing statement or an official OMB legislative proposal would be the public records that would answer those questions.