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MPA congratulates Trump and anticipates a bright future for Hollywood
In a recent turn of events, the Motion Picture Association (MPA), representing seven major entertainment studios, has extended its congratulations to Donald Trump for his victory in the presidential race. This gesture is noteworthy, especially considering the general air of despair among Hollywood figures.
A hopeful collaboration with new leadership
The MPA not only acknowledged Trump’s win but also extended its congratulations to the incoming Congress, emphasizing the Republicans’ control of the Senate. The association is eager to work on critical issues influencing the industry’s landscape. This sentiment marks a stark contrast to the broader Hollywood reaction, which has been largely pessimistic.
Supporting a robust entertainment industry
“We look forward to collaborating on a range of significant issues for the film, TV, and streaming sectors, which support over 2.7 million American jobs, boost more than 240,000 businesses in cities and small towns across the country, and provide over $242 billion in wages annually,” the MPA stated. Their commitment underscores the vital role the entertainment industry plays in the national economy, furthering the importance of stability and progressive policy-making.
Extending tax benefits under Trump’s administration
One of the MPA’s immediate goals is to extend provisions of Trump’s 2017 tax law. This includes the beneficial ability to deduct the entirety of film and TV production costs immediately, instead of spreading them over several tax years. Such provisions are pivotal for production companies as they enhance cash flow and reduce administrative burdens.
Pushing for federal incentives
Beyond tax benefits, the MPA aims for federal policies that incentivize domestic film production. Such policies could mirror state-based programs that offer tax incentives to attract filming projects within their borders. Rep. Adam Schiff, recently elected to the Senate, has championed similar incentives, advocating for a tax policy that aligns federal interests with state-level initiatives.
Global competitiveness: A pressing concern
The MPA also highlighted concerns about global competition, noting that countries like the UK, Canada, India, and Australia have implemented aggressive subsidies to fortify their local film and TV industries. This brings about the issue of “runaway production,” where projects originally intended to be produced in the U.S. are shifted abroad due to more favorable financial conditions.
The entertainment industry remains one of the U.S.’s major export forces, contributing to a $10.3 billion trade surplus in 2022. Therefore, maintaining a competitive stance on a global scale is imperative for sustaining economic contributions and job creation.
Key advocacy areas: AI, copyright, and piracy
In addition to tax and production incentives, the MPA actively lobbies on various critical issues including artificial intelligence in media, robust copyright protections, and combating online piracy. These are central to protecting the creative and economic interests of the industry and ensuring continued innovation and security.
The road ahead
As the entertainment industry navigates these transitions and prepares for future collaborations, all eyes are on Congress to see how they will extend and adjust tax provisions from Trump’s administration, many of which are set to expire in 2026.
Stay tuned for further developments and share this update with colleagues and friends to keep the conversation around Hollywood’s future thriving.
