Hollywood asks for tax incentives from Trump after 100% tariffs on films

A group of Hollywood creatives and studios wrote to the US President urging the government to implement tax code changes aimed at reducing costs for film and television production

Hollywood is struggling. Days after US President Donald Trump announced plans to levy tariffs on movies made outside of the US, Hollywood actors, including Jon Voight and Sylvester Stallone, have now signed a letter addressed to Trump, seeking his help to expand tax incentives for film and television productions.

 

Citing contents from the letter, a Politico report reads that Hollywood creatives and studios urged the US government to adopt tax code changes that will help in bringing down the taxes for film and television production. It further mentioned, “These potent tax measures would immediately make America more competitive, expand the American media industry, bring jobs back to America, and support the independent spirit of American business.”

 

 

Studios thank Trump, urge reforms

 

The labour unions and studios in their letter to Trump, which was released Monday (local time), did not mention Trump’s recent plans of imposing a 100 per cent tariff on films made overseas, instead thanked him for extending his support to the industry through their “shared goal” of producing films in the US. It read, “We appreciate and thank you for the support you have shown our industry. We also appreciate your understanding of the need to increase domestic film and television production to bring back American jobs.”

 

It further called for changes in the Internal Revenue Code of Sections 199, 181, and 461, that the signatories believed would make America more competitive. Under Section 199 of the Internal Revenue Code, deductions are provided for the manufacturing of TV and film productions. Expanding Section 181 will help in doubling to $30 million in terms of production expenditures, and restoring Section 461 will allow companies to carry back their net operating losses. 

 

Tariffs on films made overseas 

In a message shared on his private social platform, Truth Social, Trump described foreign productions as a “national security threat” to the US industry, adding that “messaging and propaganda” is brought into the country. 

An Associated Press report suggests that while Trump gave no specifics or details related to the implementation of these tariffs, he did say he would meet with the industry leaders regarding the proposal. Citing experts, the report added that they warn of a dramatic hike in the cost of making movies, once this tariff is implemented.