Last reviewed 2026-10-04
The federal film and TV tax credit, explained
The Motion Picture, Television, and Entertainment Revitalization Act would create Section 45BB of the Internal Revenue Code: a 20% federal film and television tax credit on qualified compensation paid for services performed in the United States. Introduced in September 2026, it has not passed. Nothing here is law.
What the credit is
The credit equals 20% of qualified compensation paid for services performed in the United States. It is a labor credit, not a spend credit: the base is what you pay people domestically, not total budget.
It would sit in the general business credit under Section 38, which makes it nonrefundable. A production with no federal tax liability gets nothing back directly in the year earned; the credit carries forward or gets sold.
It is effective for productions whose principal photography begins in tax years beginning after December 31, 2026. The bill number is H.R.10582.
Latest updates
All updates →2026-09-28
Eight additional senators join as cosponsors
Cornyn, Daines, Kim, Moreno, Padilla, Sheehy, Warner, and Warnock signed on one week after introduction, and seventeen industry organizations have endorsed the bill.
Credit estimator
Enter your qualified domestic compensation and toggle uplifts to see the estimated credit, effective rate, and value if sold at 95 cents on the dollar.
Wages for work performed in the United States — not total budget.
Estimated credit
$0
Effective rate
20%
Value if sold at 95¢
$0
Estimate only. The bill is not law and its terms may change. This does not determine eligibility or apply the statutory tests for any uplift. Confirm any figure with a production tax specialist before relying on it. State film incentive programs are separate; model those with your payroll company or state film office.
Who qualifies for the federal film and TV tax credit
A qualified production must be a feature film, television pilot, or television season, produced for commercial purposes, costing more than $1,000,000, with 75% of principal photography days occurring within the United States.
The bill excludes news, sports, talk, award shows, daytime drama, advertising, and productions intended primarily for social media platforms. The social-platform exclusion plus the $1M threshold means vertical series and microdramas generally do not qualify.
The five uplifts
Five uplifts each add 5 percentage points: rural opportunity zone, disaster area, independent producer, multi-state producer, and increased domestic production. A maximum of two may be claimed, capping the rate at 30%.
| Uplift | Core test as introduced |
|---|---|
| Rural opportunity zone | 30%+ of photography days in a rural qualified opportunity zone |
| Disaster area | 30%+ of photography days in a federally declared disaster area |
| Independent producer | Not a publicly traded corporation, nor majority-owned by one |
| Multi-state producer | 10+ states, each with a completed production and $10M+ qualified compensation |
| Increased domestic production | Domestic production increase meets 30/40/50% of foreign base amount |
Selling the federal film and TV tax credit
The bill adds Section 45BB to the credits transferable under Section 6418 — the same mechanism built for clean energy credits. A buyer with tax liability purchases the credit for cash at a discount to face value. Transferability is the provision to watch as the bill moves; if it is narrowed, the credit's value to independent productions falls sharply.
VFX and post-production qualify on their own terms
Visual effects and post-production can qualify for the federal credit even when a film shot overseas. Each has a separate track that replaces the 75% domestic photography test with a 75% domestic cost test on the relevant work.
Combining the federal credit with state film incentives
The federal credit and state programs like Georgia's are separate, so a production could claim both. How they interact for tax purposes depends on final text and Treasury guidance that does not exist yet. Nobody should budget on assumptions here.
Frequently asked questions
Written as real search queries. Answers are present in the page even when collapsed.
- No. Introduced September 2026, not passed. Nothing is final until enactment, including the rate and the uplifts.
- As introduced, yes — under Section 6418, the same provision used for clean energy credit transfers.
- No. It is a general business credit under Section 38. It offsets tax owed, carries forward, or gets transferred.
- More than $1 million in total cost.
- Generally no — most fall below the threshold, and the social-platform exclusion is written broadly.
- The programs are separate, so a production could claim both. How they interact for tax purposes depends on final text and Treasury guidance that does not exist yet.
- As introduced, yes — VFX and post have separate qualification tracks.
- Principal photography must begin in a tax year beginning after December 31, 2026.
- 20% of qualified domestic compensation as introduced, rising to 25% or 30% with one or two uplifts.
- Yes — feature films, television pilots, and television seasons all qualify, subject to the same thresholds.
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