The Motion Picture, Television, and Entertainment Revitalization Act, a bipartisan bill introduced Thursday, would give film and television productions a federal tax credit worth 20 percent of eligible U.S. wages. Some projects could benefit from aid of up to 30%. If the bill passes, the credit could also be combined with state incentives.
Why it’s important: California recently opened its animation tax credit program. A federal credit could give studios more reason to keep animation jobs in the United States, including in states like California that already offer support.
How would the animation be qualified: At least 75% of a production’s animation work, measured in terms of cost, should be done in the United States. This is a huge number and, if implemented, could create significant jobs on projects that require tax assistance. The bill counts for work such as keyframe animation, in-between animation, and voice recording. A U.S. studio couldn’t qualify simply by developing a film here while doing most of the animation overseas.
What the credit covers: This would apply to eligible U.S. salaries for feature films, television pilots and television seasons costing more than $1 million. The work of entrepreneurs could count. The bill also contains separate provisions for visual effects and post-production work in the United States.
The California Connection: Disney, Pixar and DreamWorks animated feature films received a substantial share of recent tax credits for California studios. A federal credit could be added to this support if these productions meet work requirements in the United States.
What’s next: The bill has support from lawmakers in both parties, studios and entertainment unions. Congress must still pass it before a production can claim credit for it.
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