Hotel and travel groups support federal film tax credit

The hotel and travel sectors have entered the fight over federal film incentives, arguing that movie and television shoots drive tourism across the country. The American Hotel & Lodging Association and the U.S. Travel Association added their names to an existing coalition of film industry groups. These organizations represent airlines, ticketing platforms, hotel chains, and resorts, including the Disney and Universal theme parks.

The bill in question is the Motion Picture, Television, and Entertainment Revitalization Act. Lawmakers introduced it last month. It proposes a 20% federal tax credit for labor costs on U.S. film and television productions. The legislation includes a 5% bonus for independent films. It also grants a 5% bonus for projects shot in rural areas or disaster zones.

Support for the measure is growing in Congress. The House bill has 52 sponsors, while the Senate version has 10. House sponsors are concentrated in states known for filming. Fifteen representatives are from California. Six are from Pennsylvania, four are from New York, and three each represent New Jersey, Illinois, and Georgia.

Geoff Freeman, president and CEO of the U.S. Travel Association, stated that production in America sends a ripple through the travel economy. He noted that shoots fill hotel rooms, restaurants, and small businesses. Freeman said a federal incentive would return economic activity to communities in all 50 states. He added that it would give destinations of every size a way to showcase themselves globally.

Ralph Posner, a spokesman for the American Hotel & Lodging Association, said the economic benefits extend beyond the film industry. He explained that domestic production brings cast, crew, and suppliers into communities. Posner stated this activity bolsters hotel demand and supports local businesses. He argued that the legislation would drive economic growth and showcase U.S. destinations to international audiences.

The House bill is currently with the Ways and Means Committee. The Senate version is in the Finance Committee. Both committees handle tax legislation. Supporters aim to pass the bill during the lame duck session. That period begins one week after the midterm election. Other backers include the Motion Picture Association, the Independent Film and Television Alliance, and Hollywood unions.