A coalition of American film industry unions and guilds, joined by veteran actor Jon Voight, has asked U.S. President Donald Trump to consider implementing tax incentives in his push to promote domestic film productions, according to a letter seen by Reuters on Monday.
Along with Voight, the letter was signed by Sylvester Stallone and Teamsters union general president Sean O’Brien, among others. They call for Trump to support the inclusion of three film-friendly tax measures in a reconciliation package being drafted in Congress.
Voight and Stallone were also appointed by Trump as special ambassadors to Hollywood to strengthen the industry and bring filmmaking back to the country.
In the letter, which was obtained by The Times, the groups say they support Trump’s proposal to create a new 15% corporate tax rate for domestic manufacturing activities that would use a provision from the old Section 199 of the federal tax code as a model.
Under the previous Section 199, which expired in 2017, film and TV productions that were made in the U.S. qualified as domestic manufacturing and were eligible for that tax deduction, the letter states.
The letter also asks Trump to extend Section 181 of the federal tax code and increase the caps on tax-deductible qualified film and TV production expenditures, as well as reinstating the ability to carry back losses, which the groups say would give production companies more financial stability.
“Returning more production to the United States will require a national approach and broad-based policy solutions, including those we propose below as well as longer term initiatives such as implementing a federal film and television tax incentive,” the letter read.
Major media companies, including Walt Disney, Netflix and Universal Pictures, film overseas in countries such as Canada and Britain as governments around the world introduce credits and rebates to attract film productions. More here
