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Yahoo
13-05-2025
- Business
- Yahoo
Jon Voight, Sylvester Stallone and entertainment groups lobby Trump for tax provisions
For the record:3:09 p.m. May 12, 2025: A previous version of this story stated Susan Sprung's title as executive director. She is chief executive of the Producers Guild of America. So-called Hollywood ambassadors Jon Voight and Sylvester Stallone joined with a coalition of entertainment industry groups for a letter delivered this week to President Trump urging him to support tax measures and a federal tax incentive that would help bring film and TV production back to the U.S. The letter is signed by Voight, Stallone, all the major Hollywood unions and trade groups such as the Motion Picture Assn., the Producers Guild of America and the Independent Film & Television Alliance, indicating widespread support from the entertainment industry. "Returning more production to the United States will require a national approach and broad-based policy solutions ... as well as longer term initiatives such as implementing a federal film and television tax incentive," the letter states. Read more: Hollywood's chaotic week of Trump, tariffs and tax break talk ends with no clear direction In the letter, which was obtained by The Times, the groups say they support Trump's proposal to create a new 15% corporate tax rate for domestic manufacturing activities that would use a provision from the old Section 199 of the federal tax code as a model. Under the previous Section 199, which expired in 2017, film and TV productions that were made in the U.S. qualified as domestic manufacturing and were eligible for that tax deduction, the letter states. The letter also asks Trump to extend Section 181 of the federal tax code and increase the caps on tax-deductible qualified film and TV production expenditures, as well as reinstating the ability to carry back losses, which the groups say would give production companies more financial stability. The tax measures — particularly Sections 199 and 181 — are issues the entertainment industry has long advocated for, according to two people familiar with the matter who were not authorized to comment publicly. The letter itself came together over the weekend, they said. It was intended to present different measures that shared the same goal of increasing domestic production, one person said. 'Everything we can do to help producers mange their budgets is important," said Susan Sprung, chief executive of the Producers Guild of America. "In an ideal world, we'd want a federal tax incentive, in addition to these tax provisions, but we want to advocate to make it as easy as possible to produce in the United States and make it as cost-effective as possible.'Last week, Trump threw the entertainment industry into chaos after initially suggesting a 100% tariff on films made in other countries. Then, California Gov. Gavin Newsom jumped into the mix, calling for a $7.5-billion federal tax incentive to keep more productions in the U.S. The proposals on the federal level come as states are upping their own film and TV tax credits to better compete against each other and other countries. Late last week, New York Gov. Kathy Hochul signed the state's budget, which increased the cap for its film tax credit to $800 million a year, up from $700 million. The expanded tax incentive program allocates $100 million for independent studios and gives additional incentives to companies that produce two or more projects in New York and commit to at least $100 million in qualified spending. The program was also extended through 2036, which could help attract TV producers, who often want to know that their filming location is committed if they're embarking on a series. Production in New York has been slow, and the state needed this boost, said Michael Hackman, chief executive of Hackman Capital Partners, which owns two film and TV studio properties in the state, as well as several facilities in California. The increase from New York could also push California to increase its own film and TV tax credit program. Last year, Newsom called to increase the annual amount allocated to California's film and TV tax credit program from $330 million to $750 million. Two bills are currently going through the state legislature that would expand California's incentive, including increasing the tax credit to cover up to 35% of qualified expenditures (or 40% in areas outside the Greater Los Angeles region), as well as expanding the types of productions that would be eligible for an incentive. "We have the best infrastructure, the best talent, we have everything going for us," Hackman said. "So if our state legislature can get more competitive with our tax credits, I think more productions will stay. But if they don't, this will result in more productions continuing to leave the state and going to New York and to other locations." Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Los Angeles Times
12-05-2025
- Business
- Los Angeles Times
Jon Voight, Sylvester Stallone and entertainment groups lobby Trump for tax provisions
So-called Hollywood ambassadors Jon Voight and Sylvester Stallone joined with a coalition of entertainment industry groups for a letter delivered this week to President Trump urging him to support tax measures and a federal tax incentive that would help bring film and TV production back to the U.S. The letter is signed by Voight, Stallone, all the major Hollywood unions and trade groups such as the Motion Picture Assn., the Producers Guild of America and the Independent Film & Television Alliance, indicating widespread support from the entertainment industry. 'Returning more production to the United States will require a national approach and broad-based policy solutions ... as well as longer term initiatives such as implementing a federal film and television tax incentive,' the letter states. In the letter, which was obtained by The Times, the groups say they support Trump's proposal to create a new 15% corporate tax rate for domestic manufacturing activities that would use a provision from the old Section 199 of the federal tax code as a model. Under the previous Section 199, which expired in 2017, film and TV productions that were made in the U.S. qualified as domestic manufacturing and were eligible for that tax deduction, the letter states. The letter also asks Trump to extend Section 181 of the federal tax code and increase the caps on tax-deductible qualified film and TV production expenditures, as well as reinstating the ability to carry back losses, which the groups say would give production companies more financial stability. The tax measures — particularly Sections 199 and 181 — are issues the entertainment industry has long advocated for, according to two people familiar with the matter who were not authorized to comment publicly. The letter itself came together over the weekend, they said. It was intended to present different measures that shared the same goal of increasing domestic production, one person said. 'Everything we can do to help producers mange their budgets is important,' said Susan Sprung, executive director of the Producers Guild of America. 'In an ideal world, we'd want a federal tax incentive, in addition to these tax provisions, but we want to advocate to make it as easy as possible to produce in the United States and make it as cost-effective as possible.' Last week, Trump threw the entertainment industry into chaos after initially suggesting a 100% tariff on films made in other countries. Then, California Gov. Gavin Newsom jumped into the mix, calling for a $7.5-billion federal tax incentive to keep more productions in the U.S. The proposals on the federal level come as states are upping their own film and TV tax credits to better compete against each other and other countries. Late last week, New York Gov. Kathy Hochul signed the state's budget, which increased the cap for its film tax credit to $800 million a year, up from $700 million. The expanded tax incentive program allocates $100 million for independent studios and gives additional incentives to companies that produce two or more projects in New York and commit to at least $100 million in qualified spending. The program was also extended through 2036, which could help attract TV producers, who often want to know that their filming location is committed if they're embarking on a series. Production in New York has been slow, and the state needed this boost, said Michael Hackman, chief executive of Hackman Capital Partners, which owns two film and TV studio properties in the state, as well as several facilities in California. The increase from New York could also push California to increase its own film and TV tax credit program. Last year, Newsom called to increase the annual amount allocated to California's film and TV tax credit program from $330 million to $750 million. Two bills are currently going through the state legislature that would expand California's incentive, including increasing the tax credit to cover up to 35% of qualified expenditures (or 40% in areas outside the Greater Los Angeles region), as well as expanding the types of productions that would be eligible for an incentive. 'We have the best infrastructure, the best talent, we have everything going for us,' Hackman said. 'So if our state legislature can get more competitive with our tax credits, I think more productions will stay. But if they don't, this will result in more productions continuing to leave the state and going to New York and to other locations.'
Yahoo
07-05-2025
- Business
- Yahoo
Newsom wants a federal tax credit to save Hollywood. Why that's a long shot
Shortly after President Trump stunned Hollywood with his call for tariffs on films produced overseas, California Gov. Gavin Newsom waded into the debate with an unexpected offer. Despite the public enmity between the two, Newsom reached out to the White House in hopes of working together on the creation of a $7.5-billion federal tax incentive to keep more productions in the U.S. Hollywood insiders have wanted a federal tax incentive program all along. Some publicly cheered Newsom's Monday proposal. Many lawmakers, including Sen. Adam Schiff (D-Burbank) and Rep. Laura Friedman (D-Glendale), have advocated for a national program to try to put the U.S. on a more equal footing with foreign countries that offer generous incentives. But such an initiative faces significant obstacles. It will be a difficult sell to the average American taxpayer, who may not be eager to support an industry viewed as wealthy and politically liberal. It's unclear where funding for the U.S. entertainment industry ranks on a list of ever-growing national priorities. "I would give it 50/50 at best," Sanjay Sharma, who teaches media and entertainment finance at USC's Marshall School of Business, said of the incentive's odds. Recently, a coalition of Hollywood unions and industry trade groups — including the Motion Picture Assn. and guilds representing screenwriters, directors and actors — backed the idea of a domestic production incentive. They said the proposal would advance the administration's goal of reshoring American jobs and providing economic growth around the country. "As Congress undertakes 2025 tax legislation, we urge lawmakers to include a production incentive to support film and television production made by workers in America," the coalition said in a statement. But with so many competing priorities facing the country, including infrastructure, homelessness and the opioid crisis, lawmakers could face an uphill battle in justifying a vote to effectively subsidize the entertainment industry. "The political optics on it are going to be very, very difficult," said George Huang, a professor of screenwriting at the UCLA School of Theater, Film and Television. "To most people, [the entertainment industry] seems like a frivolous thing." Even if a federal film tax incentive were to pass, it's not a guarantee that filming would automatically flow back to the U.S., particularly if other countries chose to increase their own tax credit programs in response, he said. But such a proposal would provide much-needed support for the entertainment industry, which has been battered in recent years by the effects of the pandemic, the dual writers' and actors' strikes in 2023 and cutbacks in spending by the studios. The situation has created what leaders call an employment crisis in the film and TV business, particularly in California. "Right now the industry is teetering," Huang said. "This would go a long way in helping right the ship and putting us back on course to being the capital of the entertainment world.' A federal tax incentive was part of a proposal from actor Jon Voight, one of Trump's so-called Hollywood ambassadors, and his manager, Steven Paul, who traveled to Mar-a-Lago last weekend to present Trump with a plan on bringing filming jobs back to the U.S. That proposal included a 10% to 20% federal tax credit that could be added on top of individual state incentives, according to a document published by Deadline. MPA Chief Executive Charles H. Rivkin also met with Voight last week, according to a source familiar with the matter who was not authorized to comment. After the Deadline story published, Paul cautioned that the document was not meant as a full-on policy proposal. 'The document does not claim to represent collective views of the participating film and television organizations, but serves as a compilation of ideas explored in our discussions on how to strengthen our position as creative leaders,' Paul wrote. In the meantime, the MPA and others have also lobbied Congress to extend and strengthen Section 181 of the federal tax code to encourage more films to stay in the U.S. Such a move could boost smaller, independent productions as well as studio films. The section addressing film production was enacted in 2004 amid a recognition that more films were moving to Canada and Europe, and the U.S. needed to remain competitive. Section 181 allows up to $15 million of qualified film and TV production expenses to be deductible during the year in which they were incurred — or up to $20 million if the project was produced in a low-income area, according to the MPA. Productions can qualify if three-quarters of their labor costs were in the U.S. The measure allows filmmakers to take the deduction when the cost is incurred, rather than after the film is released. That's important to independent filmmakers who often work on shoestring budgets and can't wait for years to see the benefit. 'If there is a bright side, maybe some of the U.S.-based companies will start taking a look at their domestic production levels,' said Frank Albarella Jr., a partner at KPMG in its media and telecommunications unit. 'Maybe there will be some more federal and state incentives right here in the U.S. That's what people are hoping for.' Times staff writer Stacy Perman contributed to this report. Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
Los Angeles Times
06-05-2025
- Business
- Los Angeles Times
Newsom wants a federal tax credit to save Hollywood. Why that's a long shot
Shortly after President Trump stunned Hollywood with his call for tariffs on films produced overseas, California Gov. Gavin Newsom waded into the debate with an unexpected offer. Despite the public enmity between the two, Newsom reached out to the White House in hopes of working together on the creation of a $7.5-billion federal tax incentive to keep more productions in the U.S. Hollywood insiders have wanted a federal tax incentive program all along. Some publicly cheered Newsom's Monday proposal. Many lawmakers, including Sen. Adam Schiff (D-Burbank) and Rep. Laura Friedman (D-Glendale), have advocated for a national program to try to put the U.S. on a more equal footing with foreign countries that offer generous incentives. But such an initiative faces significant obstacles. It will be a difficult sell to the average American taxpayer, who may not be eager to support an industry viewed as wealthy and politically liberal. It's unclear where funding for the U.S. entertainment industry ranks on a list of ever-growing national priorities. 'I would give it 50/50 at best,' Sanjay Sharma, who teaches media and entertainment finance at USC's Marshall School of Business, said of the incentive's odds. On Tuesday, a coalition of Hollywood unions and industry trade groups — including the Motion Picture Assn. and guilds representing screenwriters, directors and actors — backed the idea of a domestic production incentive. They said the proposal would advance the administration's goal of reshoring American jobs and providing economic growth around the country. 'As Congress undertakes 2025 tax legislation, we urge lawmakers to include a production incentive to support film and television production made by workers in America,' the coalition said in a statement. But with so many competing priorities facing the country, including infrastructure, homelessness and the opioid crisis, lawmakers could face an uphill battle in justifying a vote to effectively subsidize the entertainment industry. 'The political optics on it are going to be very, very difficult,' said George Huang, a professor of screenwriting at the UCLA School of Theater, Film and Television. 'To most people, [the entertainment industry] seems like a frivolous thing.' Even if a federal film tax incentive were to pass, it's not a guarantee that filming would automatically flow back to the U.S., particularly if other countries chose to increase their own tax credit programs in response, he said. But such a proposal would provide much-needed support for the entertainment industry, which has been battered in recent years by the effects of the pandemic, the dual writers' and actors' strikes in 2023 and cutbacks in spending by the studios. The situation has created what leaders call an employment crisis in the film and TV business, particularly in California. 'Right now the industry is teetering,' Huang said. 'This would go a long way in helping right the ship and putting us back on course to being the capital of the entertainment world.' A federal tax incentive was part of a proposal from actor Jon Voight, one of Trump's so-called Hollywood ambassadors, and his manager, Steven Paul, who traveled to Mar-a-Lago last weekend to present Trump with a plan on bringing filming jobs back to the U.S. That proposal included a 10% to 20% federal tax credit that could be added on top of individual state incentives, according to a document published by Deadline. MPA Chief Executive Charles H. Rivkin also met with Voight last week, according to a source familiar with the matter who was not authorized to comment. After the Deadline story published, Paul cautioned that the document was not meant as a full-on policy proposal. 'The document does not claim to represent collective views of the participating film and television organizations, but serves as a compilation of ideas explored in our discussions on how to strengthen our position as creative leaders,' Paul wrote. In the meantime, the MPA and others have also lobbied Congress to extend and strengthen Section 181 of the federal tax code to encourage more films to stay in the U.S. Such a move could boost smaller, independent productions as well as studio films. The section addressing film production was enacted in 2004 amid a recognition that more films were moving to Canada and Europe, and the U.S. needed to remain competitive. Section 181 allows up to $15 million of qualified film and TV production expenses to be deductible during the year in which they were incurred — or up to $20 million if the project was produced in a low-income area, according to the MPA. Productions can qualify if three-quarters of their labor costs were in the U.S. The measure allows filmmakers to take the deduction when the cost is incurred, rather than after the film is released. That's important to independent filmmakers who often work on shoestring budgets and can't wait for years to see the benefit. 'If there is a bright side, maybe some of the U.S.-based companies will start taking a look at their domestic production levels,' said Frank Albarella, Jr., a partner at KPMG in its media and telecommunications unit. 'Maybe there will be some more federal and state incentives right here in the U.S. That's what people are hoping for.'
Los Angeles Times
22-04-2025
- Entertainment
- Los Angeles Times
Trump named Gibson, Stallone and Voight as ‘special ambassadors.' Hollywood is still waiting for a call
Just days before beginning his second term as president, Donald Trump called Hollywood 'a great but very troubled place.' Then, with his usual aplomb and bombast, he named Jon Voight, Sylvester Stallone and Mel Gibson to be his 'special ambassadors.' The actors would be his 'eyes and ears, and I will get done what they suggest,' he wrote on his Truth Social platform. Hollywood had 'lost much business over the last four years to Foreign Countries,' said Trump, and his trio of envoys will help bring it 'back — bigger, better, and stronger than ever before!' Four months later, many of those who work in Hollywood — industry players and officials who have been actively engaged in efforts to boost production — say as far as Trump's envoys are concerned, it has been mostly 'crickets.' While the administration has taken a protectionist stance on American manufacturing and business, implementing a slew of global tariffs, it has not made any further announcements regarding the Hollywood envoys, their roles, goals or priorities to revitalize the struggling entertainment industry here. The ambassadors themselves have, for the most part, kept a low profile. 'We have reached out to all three and never heard back,' said Pamala Buzick Kim, co-founder of Stay in LA, a grassroots campaign aimed at spurring local film and TV production. She said the lack of communication has left many wondering whether Trump's envoys are 'just a bumper sticker, or are they going to, actually understand what the needs and issues, are and fight for the industry as a whole here in the States?' A spokesperson for the California Film Commission said its executive director, Colleen Bell, had a 'productive' conversation with Voight, but did not elaborate on their discussion. An individual involved with Mayor Karen Bass' entertainment business task force formed last year, who was not authorized to speak publicly, said they were unaware of any contact with the envoys. Others, including the Motion Picture Assn., which represents the major media companies and streamers, declined to comment on whether they have had any interaction with Trump's ambassadors. 'I haven't heard of anyone having any outreach from anyone from that group,' said Rep. Laura Friedman (D-Glendale), a former film producer and a longtime advocate for the entertainment industry. Friedman announced a new push to bolster production earlier this month with members of various Hollywood unions and 10 other members of Congress. 'It doesn't seem like a serious effort to me,' she said. The White House declined to comment. Trump's announcement did put a national spotlight on the homegrown film industry, which continues to struggle to rebound following a trifecta of hits: the pandemic, labor strikes and more recently, the wildfires. More problematic, California has lost its competitive edge as film crews continue to be enticed by generous incentives — leading to an exodus of productions to hubs like Georgia and New Mexico and countries including Australia, Britain and Canada. While Gov. Gavin Newsom has proposed raising the amount of money allocated annually to California's film and TV tax credit program to $750 million from $330 million, the state legislature has yet to approve the measure and the industry remains under pressure. In the first quarter of this year, on-location production dropped 22.4% compared to the same period last year, according to a report released in April by the nonprofit organization FilmLA, which tracks shoot days in the Greater Los Angeles region. 'I think part of the problem with California is they came to take this industry for granted a little bit,' Ben Affleck told the Associated Press in an interview last week while promoting his latest film, 'The Accountant 2,' in Los Angeles. Within the industry, the surprise appointment of the three actors as the president's special emissaries was received with a mixture of shock, bemusement and eye rolls. 'When they were announced, I think we were all curious about what those three think and what they think is the issue,' said Buzick Kim. 'Because I don't know if any of them have a history of speaking out on this front.' Indeed, it appears that no one was more taken aback by the appointment than the actors themselves. 'I got the tweet at the same time as all of you and was just as surprised. Nevertheless, I heed the call. My duty as a citizen is to give any help and insight I can,' said Gibson in a statement. 'Any chance the position comes with an Ambassador's residence?' he quipped, in reference to the loss of his Malibu properties in the wildfires. Neither Stallone nor Voight has commented publicly. Representatives for the actors did not respond to requests for comment. Following his appointment as ambassador, Voight's longtime business partner Steven Paul, an independent film producer and chairman/chief executive of SP Media Group, issued a press release saying that the actor had tapped him as a 'special advisor.' Along with Voight's fellow ambassadors, 'we will be working within the industry to find ways to bring runaway productions back to America while working with the government to explore a potential federal tax incentive tied to a pro-American cultural standard, among other initiatives that support independent American productions,' the statement said. Voight, Paul and Trump had discussed a new 'America First' initiative pertaining to film production over dinner in February, according to the statement. A representative for Paul said he was not immediately available for comment. All three Hollywood emissaries have been avid supporters of the president: Voight attended events at both inaugurations, Stallone has visited Mar-a-Lago and Gibson, who has a history of making racist and antisemitic remarks (for which he later apologized), ridiculed Kamala Harris during the election, saying she had 'the IQ of a fence post.' They all generated celebrity wattage during the 1980s (said to be Trump's favorite decade) — Voight was nominated for an Oscar for 'Runaway Train.' It was an era when mainstream action films rose to prominence in popular culture (think Stallone's 'Rambo' and Gibson's 'Lethal Weapon' franchises) that promoted the idea of American strength and masculinity. None has been known to be particularly involved in the nuts and bolts of Hollywood production issues of tax incentives and permits. For the past three years, Stallone has starred in the Taylor Sheridan drama 'Tulsa King,' about a New York mobster who sets up shop in Oklahoma after his release from prison. Incidentally, the Paramount+ series was originally called 'Kansas City Mob' and was set to film in Missouri, until it received a more than $14 million rebate to shoot episodes of the first season in Oklahoma City. Although Trump's announcement has largely been met with skepticism in liberal Hollywood, many see this as an opportunity to bring needed attention to an important American industry. 'I don't know if any one of those three can move the needle but the fact that it's being discussed at the federal level is a positive,' said Gregg Bilson, whose Sunland-based ISS Props has served the industry for three generations. Bilson is a member of the California Production Coalition, a group that voices the concerns of the small businesses serving the film and TV industry. While few believe the actors will roll up their sleeves on the issues — at least so far — their appointment has renewed interest in the idea of implementing federal tax credits. 'If Trump is willing to fight for all these other industries with tariffs, what's he doing for us? What's he doing to ensure that our jobs are protected here in the United States?' asked Rachel Cannon, an actress who starred on 'Fresh Off the Boat. ' She later moved back to Oklahoma City, where she founded Prairie Surf Studios and more recently Rock Paper Cannon, a venture to bring television production to Oklahoma. Cannon, a production advocate who helped recruit 'Tulsa King' and the film 'Twisters' to Oklahoma, sees a federal incentive as a path to making the American film industry more competitive with nations whose generous rebates have shifted the axis of power away from Hollywood to the U.K., Canada and other countries. 'I think what we really need to be doing is banding together and asking for a federal rebate program that can stack, because that can help subsidize these productions to stay in America. States can only offer so much that you need to have some federal support,' she said. Friedman, who has long supported the idea of a federal film tax credit, agrees. 'L.A. still has to be that dream factory, that place where people go to make it in the movies or TV. That's incredibly important to our local economy,' she said. 'But we also have to recognize that we are losing not just to other states, but we're losing to other nations. And we have to do something about that.' For now, everyone is waiting to see if Trump and his chosen trio. 'I don't know how much Trump has really drilled into the desire for that program that he said he wants to keep Hollywood here at home,' Cannon said. 'I just want to make sure there's a policy that follows up to ensure that it happens because, throwing out a press release with nothing behind it — it's not going to help us.' Washington bureau chief Michael Wilner contributed to this report
