Everything you need to know about the new federal film incentive bill

It’s a sign of the times: The iconic Warner Bros. water tower has now been repainted to include “A Skydance Corporation,” signaling the completion of the PSKY/WBD merger.

While this consolidation has everyone wondering about the future, Film Independent is already looking ahead. During a panel on the future of independent film and the creative economy at the Independent Film Forum, President Juan Davis addressed a fundamental question facing independent cinema:

“For 42 years, Film Independent has championed creative independence in filmmaking. Through our programs, labs, grants, mentorship, events and the Spirit Awards, we’ve helped artists and projects move from idea to development and production and ultimately to audiences. But the conditions in which that work is made are changing dramatically. Jobs are shrinking, jobs are disappearing and projects are moving elsewhere.

Film Independent wants to take a more active role in making sure these filmmakers, businesses and jobs are represented in the economic and political conversations that shape our future. And that’s why we’re gathered here today to ask: What will it take for Los Angeles and California to remain the world’s most important and relevant home for independent storytelling?”

A new federal film incentive may provide some answers.

It’s called the Motion Picture, Television and Entertainment Revitalization Act. This bipartisan legislation, introduced by Washington lawmakers on September 24, 2026, is part of a plan to crack down on overseas production and bring film jobs back to the US. 20% US Film IncentiveWith bonuses that can bring the total discount up to 30%.

To illustrate the financial shortcomings of current American productions, producer John Lang told the audience at the Creative Economy panel that a $25-30 million film had a proposed transport budget of $9 million to shoot in Atlanta, as opposed to £950,000 in Belfast. “You can’t compete with that,“- he said.

While not a “silver bullet,” this new federal incentive is intended to compete with the roughly 65 states that don’t currently offer incentives in the US. It will also be stacked with state incentives and provide a 5% increase per year for spending of at least $10 million in 10 states. These combined credits could create some of the most generous film and television subsidies in the world. “If it goes through and comes clean, shooting in Georgia, California or New York is the best deal on the planet.” Joe Kianes saidSenior Vice President of Incentives for Entertainment Partners. “Overseas nothing comes close.”

Incentives will apply to narrative and documentary feature films, television shows (scripted and unscripted), television pilots, animation, pre-production and post-production, above and below series pay.

Most importantly, it also included a 5% bonus for independent productionAlso for filming in a federal disaster area, with a 5 year limit. Following the 2025 Palisades and Eaton fires, Los Angeles County was declared a federal disaster area. If accepted, this bonus extends to LA County through January 2030.

For independent filmmakers, this can have a significant impact on the packaging and financing of their work. If filming in Los Angeles becomes more financially viable, it incentivizes talent to stick with independent projects, which directly affects their ability to get funding and create.

“When you’re talking about an independent film and you’re trying to get an actor to give you the green light, if you can say you shot here in L.A. and they’re coming home every day, that makes a big difference,” producer Tom Butterfield said at the forum.

The Motion Picture, Television, and Entertainment Revitalization Act requires movies to have a A minimum spend of $1 million and at least 75% of production days must occur in the US if it passes It will apply to projects that will be put into production after December 31, 2026.

The legislation has bipartisan support from the White House as well as Senator Adam Schiff (D), Representative Laura Friedman (D) of California, Senator Tim Scott (R) of South Carolina and Representative Tim Moran (R) of Texas. Friedman and Moran are also founding members of the Congressional American Film and Television Production Caucus, a bipartisan effort to further strengthen US production and educate Congress about the importance of entertainment in the States.

According to John Lang, a healthy film ecosystem includes not only larger, studio-backed productions, but also independent productions. “We’re filling gaps in the ecosystem. You don’t want everyone to have a job at a huge company. You have to have a mix of SMEs.”

While the future remains uncertain, Film Independent is committed to finding ways forward that support creative independence for the benefit of all.