U.S. Film Studios Cut Domestic Spending to 42% in 2024 as Tax Credit Push Intensifies
Updated
Updated · POLITICO · Oct 6
U.S. Film Studios Cut Domestic Spending to 42% in 2024 as Tax Credit Push Intensifies
2 articles · Updated · POLITICO · Oct 6
Summary
U.S. film studios spent just 42% of production budgets domestically in 2024, down from nearly 75% about 25 years earlier, according to a new EY study backed by seven labor groups.
The report ties the decline to expanding tax incentives in other countries and across U.S. states, arguing Hollywood is shifting shoots away from America as rival jurisdictions offer richer breaks.
Television production shows the same pattern: spending that was almost entirely U.S.-based in 1999 fell to about two-thirds by 2024.
Capitol Hill backers are using the findings to press for a new federal film tax credit by year-end, while unions say it is needed to protect middle-class crew jobs.
Critics still argue a federal credit would waste public money by subsidizing production that would happen anyway and delivering little lasting economic benefit.