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Trump seeks federal film production tax incentive as L.A. studios face distress
The proposal would target a 20 percent credit on U.S. production labor costs, as shooting days in Los Angeles fell 42 percent from 2022’s peak to 2024.
President Donald Trump is urging Congress to create a nationwide tax incentive for film and television production, aiming to boost entertainment jobs and reverse Hollywood’s production downturn. Commercial Observer reports the president said he is arranging meetings with leaders from both parties to begin forming legislation, though he did not outline the credit’s final size or structure.
One proposal backed by industry leaders calls for a 20 percent credit on U.S. production labor costs. Commercial Observer adds that while 39 states already offer production incentives, the U.S. currently lacks a nationwide program comparable to incentives available in other countries.
The push comes as studio space in the Los Angeles area has reportedly deteriorated, with L.A. County shooting days falling 42 percent between the 2022 peak and 2024. Commercial Observer also cites estimates showing Southern California production in 2025 was 50 to 70 percent below its peak, with roughly half of L.A.’s film and television stages reportedly empty at the time.
Commercial Observer links the slowdown to financial stress among studio landlords, including Hackman Capital Partners defaulting on $1.1 billion in financing tied to the 1.2 million-square-foot Radford Studio Center. It also notes lenders alleging Television City’s landlord owes more than $357 million, and that Hudson Pacific Properties is facing a $1.1 billion Hollywood studio loan maturity while Netflix pursues Hackman’s Radford Studio Center, with FilmLA reporting fewer on-location shoot days in 2026.