Union study shows U.S. film and TV production fell 30 points in 25 years
Six major unions released an EY report on October 5 showing production spending and jobs shifting overseas, backing a push for federal tax credits.
Hollywood’s major unions released a jointly commissioned study on October 5, 2026, showing that U.S.-based film and television production has declined sharply over 25 years. The report, conducted by Ernst & Young and commissioned by the Directors Guild of America, International Alliance of Theatrical Stage Employees, Laborers’ International Union of North America, SAG-AFTRA, Teamsters, and both Writers Guild branches, documents a 32-percentage-point drop in film production spending inside the country from 1999 to 2024 and a 30-point fall in television spending.
The unions released the findings to support Congressional efforts to establish a federal production tax credit, arguing that tax incentives in Canada, the United Kingdom, and 63 other countries, as well as competing U.S. states such as Georgia, have drawn productions away from American locations. The data underscores a competitive disadvantage that major studios and producers have increasingly exploited over 25 years, with productions migrating to jurisdictions offering substantially larger tax breaks.
Two decades of production relocation
The EY study examined major studio films budgeted at $5 million or higher and television episodes at $1 million or more per episode between 1999 and 2024. Production spending on films shot partially or primarily in the United States fell from 74 percent to 42 percent. Television production spending declined from 94 percent to 64 percent domestically.
The impact extended to the workforce. Cast and crew working on American films dropped 29 percentage points from 72 percent to 43 percent. On television, the figure fell 28 points from 86 percent to 58 percent. Among the 25 highest-budget films, U.S. production spending decreased by 40 percent.
The shift reflects 25 years during which tax incentives in competing jurisdictions became substantially more generous than anything available domestically. A total of 65 countries now offer production incentives.
Global tax credit landscape
Sixty-five countries now offer production incentives, creating competitive pressure on U.S. production.
The competitive disadvantage and federal response
To address the erosion, Senators Tim Scott (R-S.C.) and Adam Schiff (D-Calif.) and Representatives Nathaniel Moran (R-Texas), Linda Sanchez (D-Calif.), Brian Jack (R-Ga.) and Laura Friedman (D-Calif.) introduced the Motion Picture, Television, and Entertainment Revitalization Act in September 2026. The bill proposes a 20 percent federal tax credit on qualifying labor expenses for productions with a minimum $1 million spend and at least 75 percent of principal photography in the United States. This base credit can be supplemented by bonus credits of up to 5 percentage points each for productions in rural opportunity zones, disaster-impacted regions, independent films, and multi-state productions working across 10 or more states. Post-production and visual effects work would qualify if 75 percent occurs domestically.
A study by Olsberg•SPI commissioned by the Motion Picture Association and unveiled September 16, 2026, projected that such a federal credit would generate $249.1 billion in gross value added from 2027 to 2035 and support an average of 143,500 full-time equivalent jobs annually across all 50 states, with an additional $133.1 billion in labor income and $125.3 billion in production expenditures. The unions’ October release of the production-shift data serves as evidence that the legislation addresses a documented problem.
Cast and crew working on American films dropped 29 percentage points from 72 percent to 43 percent over 25 years.
Industry stakes and union strategy
Industry leaders have emphasized the urgency. Charles Rivkin, CEO of the Motion Picture Association, called a federal credit ‘a gamechanger’ that would ‘bring more opportunities to life for people in all 50 states.’ Hollywood Ambassador Jon Voight stated that ‘the entertainment industry that I love is in dire straits, with productions running to Canada and overseas due to the tax advantages offered to producers.’ Representative Laura Friedman, a co-sponsor, framed job losses in concrete terms: ‘Every production that goes overseas takes electricians, carpenters, drivers, and small business revenue with it.’
Related coverage: How overall and output deals fund production companies, and why terms fell since 2021; Why Subscriber Counts Now Determine Streaming Residuals Under SAG-AFTRA.
Photo: Sean Devine at http://picasaweb.google.com/seanmdevine · CC BY-SA 3.0 · via Wikimedia Commons
