Dreier, Berman Reintroduce
Runaway Production Legislation
Bipartisan Bill Aims to Keep Movie and TV Production Jobs in the USA

February 12, 2003

WASHINGTON - Congressmen David Dreier (R-San Dimas) and Howard Berman (D-Van Nuys), joined by a bipartisan group of 45 Members today reintroduced legislation that provides wage-based tax relief for film and television projects produced in the United States. The United States Independent Film and Television Production Incentive Act of 2003 aims to create incentives to keep production projects here in the United States at a time when numerous projects are being filmed in Canada and elsewhere.

"When productions head to countries like Canada, they take American jobs with them," said Dreier, Chairman of the House Rules Committee. "It's the caterers, florists, retailers and truck drivers that suffer as a result of runaway production. I'm a free trader, but I believe in a level playing field. Countries like Canada are providing tax incentives that make it cheaper for productions to work north of the border. We need to be able to compete by making it just as enticing to do that work here at home."

"The U.S. film industry is being undermined by an array of tax incentives, employee credits and loan programs offered by Canada and other countries," said Berman. "These nations understand quite well that film productions stimulate local, regional and national economic activity like few other industries."

"The consequence of this targeting of U.S. jobs has been devastating in California and throughout the nation," Berman continued. "And the problem is escalating. The sound stages, editing facilities and increased experience of Canadian crews makes it easier and easier to shoot films and TV there."

The bill, which is identical to legislation introduced last Congress, is targeted at the segment of the market most vulnerable to runaway production, small and independent film and television productions. It provides a wage-based tax credit for television and film projects produced in the United States. The amount of the wage credit, in most cases, would be 25 percent of the first $25,000 in qualified wages per employee.

Dreier and Berman praised the strong bipartisan support behind the bill. "The issue of runaway production hasn't gone away," Dreier said. "We need to keep raising awareness among our colleagues so that our film and television industries, and the small businesses that depend on them, can continue to thrive."