Reps Dreier and Berman Introduce Legislation To Keep Movie Production Jobs In The USA

Bipartisan bill will help local industry compete against foreign incentives

October 16, 2001

WASHINGTON - Los Angeles Reps. David Dreier (R-CA) and Howard Berman (D-CA), joined by Rep. Charlie Rangel (D-NY) and a bipartisan group of eleven Members of the House of Representatives, today introduced legislation to provide wage-based tax credits for film and television projects produced in the United States.

“This legislation is designed to address alarming trends in runaway production,” said Dreier, who chairs the House Rules Committee. “Most Americans believe that U.S. industries can compete with anyone if the rules of the game are fair, and no industry in the United States believes in this principle more strongly than the U.S. movie and television industry,” he continued. “But today, we’re losing productions solely because special tax and employment incentives, and loan programs for studio and sound stage construction, and other such measures have been enacted by foreign countries to lure movie and television productions - and the jobs they create - away from the U.S.”

“Runaway production is not caused by competitive forces in the marketplace, but by government subsidies,” said Berman. “In the case of Canada, 35 cents on the dollar. Canadian provinces are willing to pay such fees, because film productions provide an enormous stimulus to their local economy.”

“This is not about big-name stars,” continued Berman. “It’s about the production assistants, art directors, location managers and truck drivers -- the “below-the-line”employees who can’t find work because productions are fleeing to other countries. We have been losing huge numbers of local jobs and suffering the resulting economic drain for years. We must take action to fight it, particularly now, with our economy in severe decline.”

The legislation would create a 25 percent wage tax credit paid to each employee on qualified U.S. productions, and is targeted to the segments of the market most affected by runaway productions, including television movies. It would include small businesses associated with film productions such as caterers.

Original co-sponsors of the Dreier-Rangel-Berman bill are Mark Foley (R-FL), Robert Matsui (D-CA), Jerry Weller (R-IL), Xavier Becerra (D-CA), Jennifer Dunn (R-WA), Gary Condit (D-CA), Mary Bono (R-CA), Tony Weiner (D-NY), Mike McIntyre (D-NC), Karen McCarthy (D-MO) and Bill Jefferson (D-LA). Similar legislation was introduced in the Senate on July 31, 2001 by Senator Blanche Lincoln (D-AR).