Zurich Summit eyes 20% federal film tax credit with potential up to 30%

At the Zurich Summit, a group of film financiers discussed the prospects of a U.S. federal film incentive after a bipartisan bill proposing a 20% credit with bonuses up to 30% was unveiled last week.

The proposed text would apply to qualifying film and TV productions beginning in taxable years after December 31, 2026, effectively targeting projects starting in 2027; lawmakers note that the passage of any bill can take years.

Alex Walton, former Co-Lead & Partner at WME Independent, called the idea “hugely positive,” saying the U.S. has not had an efficient tax credit and that it could take three to four years to realize and to cash-flow for financial institutions.

Andrea Scarso, Managing Partner at IPR.VC, agreed the incentive would be positive but cautioned about how budgets could respond if the credit increases, noting that it remains to be seen whether prices and budgets rise in tandem.

Sarah Schweitzman, Co-Head of CAA Media Finance, argued that federalizing a tax incentive could create more jobs and invigorate crews. A Motion Picture Association study projects the federal credit could raise U.S. production spending by about $125 billion and add more than 143,000 jobs by 2035.

Overall, officials say the discussion centers on timing and structure as the bill moves through legislative channels, with no firm start date yet set.

Source: Deadline

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