Hotel and Travel Industry Groups Back U.S. Film Incentive as Tourism Draw

Lobbying groups representing the hotel and travel industries have endorsed a 20% federal tax incentive for film and TV production, arguing that domestic filming attracts tourism from abroad. The American Hotel & Lodging Association and the U.S. Travel Association have joined an alliance of film industry stakeholders in pushing for the bill. The two groups represent airlines, ticketing sites, hotel companies and resorts, including the Disney and Universal theme parks. “Every film and TV production made in America sends a ripple through the travel economy, filling hotel rooms, restaurants and small businesses during the shoot and inspiring travelers to visit long after the credits roll,” said Geoff Freeman, president and CEO of the U.S. Travel Association, in a statement. “A federal production incentive would bring that economic activity back to communities in all 50 states and give destinations of every size a powerful new way to showcase themselves to the world.” A bipartisan group of lawmakers introduced the Motion Picture, Television, and Entertainment Revitalization Act last month. The bill would create a 20% tax credit for labor on film and TV productions in the U.S., with 5% bonuses for independent film and for filming in rural areas and disaster zones. The bill now has 52 sponsors in the House of Representatives and 10 sponsors in the Senate. The House sponsors are heavily concentrated in filming states, with 15 from California, six from Pennsylvania, four from New York, and three each from New Jersey, Illinois and Georgia. The House bill has been referred to the Ways and Means Committee, which handles tax legislation, while the Senate version is in the Finance Committee. Supporters are hoping to pass the bill during the lame duck session that begins a week after the midterm election. “The economic benefits of this measure extend well beyond the film and television industry,” said Ralph Posner, spokesman for the American Hotel & Lodging Association. “Domestic production brings cast, crew, and suppliers into communities across the U.S., bolstering hotel demand and supporting local businesses. By encouraging more domestic production activity, the legislation will help drive economic growth, support local communities, and showcase U.S. destinations to audiences around the world.” Backers of the bill also include the Motion Picture Association, which represents the major studios, as well as the Independent Film and Television Alliance all of the Hollywood unions.