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U.S. Hotel and Travel Groups Endorse Federal Film Incentive to Drive International Tourism

Top things to know

  • Hotel and travel trade groups have endorsed a proposed 20% federal tax credit for film and TV production, arguing domestic filming attracts tourism from abroad.
  • The U.S. Travel Association and American Hotel & Lodging Association joined film industry stakeholders to push for the Motion Picture, Television, and Entertainment Revitalization Act.
  • The bill includes a 20% labor tax credit for U.S. film and TV shoots, with 5% bonuses for independent films, rural shoots, and disaster zones.
  • The legislation has 52 sponsors in the House of Representatives and 10 in the Senate, with strong sponsorship from major production states including California, Pennsylvania, and New York.
  • Proponents aim to pass the bill during the lame-duck session starting one week after the midterm elections.

Lobbying groups representing the hotel and travel industries have formally endorsed a proposed 20% federal tax incentive for film and television production, contending that domestic filming serves as a major driver for attracting tourism from abroad. The endorsement brings together major travel and hospitality trade organizations alongside entertainment industry stakeholders seeking legislative action to spur domestic production and international visitor interest.The American Hotel & Lodging Association and the U.S. Travel Association have joined a broad alliance of film industry stakeholders advocating for the proposed legislation. Together, these travel and hospitality organizations represent a wide array of businesses across the travel sector, including major airlines, online ticketing platforms, hotel companies, and destination resorts, as well as major theme parks such as Disney and Universal.Industry executives emphasize that film and television productions generate widespread financial activity that extends far beyond production soundstages and film sets. Geoff Freeman, president and chief executive officer of the U.S. Travel Association, highlighted the multi-layered impact that domestic filming has on local destination economies across the country. “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,” Freeman stated. He noted that a federal production incentive would bring economic activity back to communities across all 50 states, providing destinations of every size with a powerful new way to showcase themselves to the world.The proposed legislation, titled the Motion Picture, Television, and Entertainment Revitalization Act, was introduced last month by a bipartisan group of federal lawmakers. Under the provisions of the bill, a 20% tax credit would be created for labor costs associated with film and television productions within the United States. In addition to the base credit, the legislation incorporates 5% bonus incentives for independent film projects, as well as for productions filmed in rural areas and designated disaster zones.Supporters from the hospitality sector point out that the legislative measure offers direct economic benefits to local commercial ecosystems and communities far beyond traditional entertainment hubs. Ralph Posner, spokesman for the American Hotel & Lodging Association, noted that the benefits of the proposed policy reach across multiple industries. “The economic benefits of this measure extend well beyond the film and television industry,” Posner stated. “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.”The measure has built noticeable congressional support across both chambers, accumulating 52 sponsors in the House of Representatives and 10 sponsors in the Senate. Co-sponsors in the House of Representatives are heavily concentrated in states with major filming sectors, including 15 representatives from California, six from Pennsylvania, four from New York, and three each from New Jersey, Illinois, and Georgia.Procedurally, the House bill has been referred to the House Ways and Means Committee, which oversees federal tax legislation, while the Senate version has been assigned to the Senate Finance Committee. Supporters of the legislation are seeking to pass the measure during the congressional lame-duck session scheduled to begin one week after the midterm election.In addition to hotel and travel groups, key coalition partners backing the bill include the Motion Picture Association, which represents major studio organizations, the Independent Film and Television Alliance, and Hollywood labor unions.