The Motion Picture Association (MPA), representing the interests of seven major entertainment studios, has issued a statement congratulating Donald Trump on his recent victory in the presidential race. The announcement, made on Wednesday, highlights the MPA’s eagerness to collaborate with the incoming Congress, particularly as Republicans have regained control of the Senate.
In its statement, the MPA emphasized the importance of the film, television, and streaming industries to the American economy, noting that these sectors support over 2.7 million jobs across the nation. Furthermore, they contribute significantly to local economies, with more than 240,000 businesses benefiting from the industry, resulting in an impressive $242 billion in wages annually.
“We look forward to working with them on a wide range of important issues for the film, TV, and streaming industry,” the MPA stated. The association also commended the efforts made to ensure fair elections and uphold the democratic process in the United States.
This positive reception from the MPA contrasts sharply with the sentiments expressed by many Hollywood figures, who have voiced concerns and disappointment following the election results. The MPA’s optimistic outlook indicates a strategic focus on legislative matters that could bolster the entertainment industry.
One of the key areas of interest for the MPA is the potential extension of provisions from Trump’s 2017 tax law. This includes the ability for film and television production costs to be fully deducted in the year they are incurred, rather than being spread out over multiple years. Such a policy change could significantly impact the financial landscape for filmmakers and studios.
Additionally, the association is advocating for federal policies that would incentivize domestic film production, similar to existing state-based tax incentives. This initiative is gaining traction, with Rep. Adam Schiff, a newly elected Democratic senator, recently calling for such incentives in a letter addressed to the Bureau of Economic Analysis and the Bureau of Labor Statistics.
The entertainment industry plays a crucial role in the U.S. economy, boasting a $10.3 billion trade surplus in 2022. However, the MPA has expressed concerns regarding international competition, as countries like the U.K., Canada, India, and Australia have implemented aggressive subsidies to bolster their domestic film and television sectors. This has raised alarms about the phenomenon known as “runaway production,” where U.S. productions relocate to countries with more favorable financial incentives.
While Trump has not made any specific commitments regarding these issues, Congress is anticipated to address the extension and modification of the provisions from the 2017 tax law in the upcoming year, with many of these provisions set to expire in 2026. The MPA is also actively lobbying on various other issues, including the regulation of artificial intelligence, copyright protection, and the fight against online piracy.
The MPA’s proactive stance signals its commitment to advocating for the interests of the entertainment industry during a time of significant political change. As the new administration takes office, the MPA is poised to engage with lawmakers to ensure that the film and television sectors continue to thrive in an increasingly competitive global market.
