A union-backed report says US studios now spend 42% of their film budgets at home, down from 74% in 25 years. Should America pay a tax credit to win filming back?

What happened

A report prepared by EY for seven Hollywood unions, including the Directors Guild, SAG-AFTRA, IATSE and the Teamsters, found that major US studios spent 74% of their film production budgets in the US in 1999 but 42% in 2024. For TV the figure fell from 94% to 64%. The drop was steepest for the 25 most expensive films, where the US share fell from 74% to 34%. A bipartisan bill introduced in September would create a 20% federal tax credit that can be stacked on state incentives, and President Trump has backed the idea.

Why people disagree

Supporters say other countries have drawn big productions away with generous incentives, costing American crews well-paid jobs, and point out that the US already backs industries it sees as important, such as semiconductors. Critics, including the Wall Street Journal's editorial page, call film credits handouts to wealthy studios, and others argue that countries outbidding each other simply move work around at taxpayers' expense.

What's still unclear

The report measures the shift but does not try to explain why production moved. It is unclear whether Congress will pass the credit before the year ends, what it would cost, and how much work it would pull back from places such as the UK.