The American Entertainment Alliance is lobbying for a 20 percent federal tax credit on domestic labor costs to address a 35 percent decline in U.S. production jobs since 2022. The coalition is also proposing new regulations to limit streaming platform exclusivity and mandate independent content sourcing to combat industry consolidation.
The push for a federal incentive marks a shift from state-level competition to a national strategy aimed at neutralizing aggressive foreign subsidies. If enacted, the 20% credit could stabilize a labor market that has lost 45 million employment hours annually, but the structural proposals are more disruptive. By seeking to revive Fin-Syn-style rules, the Alliance is challenging the vertically integrated model that allows streamers to control both production and long-term rights. This represents a direct confrontation with the 'closed-loop' ownership structures that have defined the streaming era. Watch for the legislative progress of the Revitalization Act in late 2026 as a bellwether for broader regulatory intervention in Hollywood.
The American Entertainment Alliance is pushing for a 20% federal labor cost tax credit to address a 35% decline in U.S. production jobs since 2022. This initiative aims to counter foreign subsidies and domestic consolidation, seeking to stabilize the labor market and challenge the vertically integrated ownership models of streaming platforms.
The Revitalization Act is a proposed federal incentive that offers a 20% labor cost tax credit for film and television projects with budgets exceeding $1 million.
The Alliance is seeking to combat a 35% decline in U.S. production jobs since 2022 and address the drop in domestic spending on major-studio film budgets, which fell from 74% to 42% over the last 25 years.
The proposed regulations would mandate that streaming platforms source 50% of their original content from independent producers to challenge current closed-loop ownership structures.
U.S. scripted commissions from streaming platforms experienced a 41% decline between 2022 and 2025.
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