Proposed legislation aims to bring "Hollywood home" by way of a national film tax credit

State and local leaders gathered with film and television representatives in Glendale to announce a push for legislation to create the first-ever federal tax incentives to bring entertainment production back to the United States.

This is something supporters say needs to happen to put Americans back to work on productions that have been leaving the country for decades.

"I am here to tell you that we have never been this close to getting a federal tax credit passed. Never been this close," Senator Adam Schiff said, noting that there is bipartisan support, including the support of the White House.

The Motion Picture, Television, and Entertainment Revitalization Act is designed to compete with roughly 65 countries that already offer incentives unavailable in this country.

SAG-AFTRA supports the proposed legislation as it has lobbied for a federal incentive for years.

"If the work happens here and you hire U.S.-based workers, you get the tax credit. It's that simple. If you bring your production somewhere else, you don't get the tax credit," U.S. Congresswoman Laura Friedman said.

"And this bill would help bring economic activity back in the region, specifically to help after a federally declared disaster."

The proposed tax credit amount is 20% of the compensation paid for services performed in the United States. The base tax credit percentage increases by increments of 5% if:

• At least 30% of the production is filmed in a federally declared disaster area or rural qualified opportunity zone 
• The production is independently produced
• Film companies that increase their number of domestic productions relative to their previous foreign investment
• Multistate productions

If the bill passes, more than 143,000 American jobs will be added in one year, Friedman said. She added that Los Angeles workers are asking the U.S. to compete on equal footing with other nations to bring American jobs back to the U.S.

"When a production stays here, our whole region wins. And the great thing about this bill is that it not only creates a federal incentive, but productions can also stack on top of it any state or local incentives, which allows forward-thinking states like California that already offer incentives a way to help keep those jobs right here in our state," Congresswoman Linda Sánchéz said.