Congress is preparing to offer a new federal incentive for film and television companies that keep production work in the United States, with Republicans and Democrats joining forces around a proposal backed by President Donald Trump and the entertainment industry.

The legislation, known as the Motion Picture, Television and Entertainment Revitalization Act, would establish a 20% tax credit for qualifying U.S. labor costs. Additional incentives could raise the credit to as much as 30% under certain circumstances, including productions that meet requirements involving rural opportunity zones, disaster areas, or production across multiple states.

Rep. Nathaniel Moran, R-Texas, and Sen. Tim Scott, R-S.C., are leading the legislation in the House and Senate, respectively. Democratic lawmakers, including Rep. Linda Sánchez of California and Sen. Adam Schiff of California, are also backing the effort, which has been developed as a bipartisan response to the migration of American film and television production overseas.

The proposal comes after years of American productions moving to countries such as Canada, the United Kingdom and Australia, where governments offer significant financial incentives to attract entertainment projects. Supporters argue that keeping those productions in the United States would benefit not only actors and studios but also the large network of workers and small businesses involved in making films and television programs.

Trump has publicly pushed Congress to establish a federal production incentive, arguing that American entertainment work should be produced domestically. The Motion Picture Association, which represents major studios and streaming companies, has also endorsed the legislation.

Schiff said the federal credit could be combined with existing state incentives, including California's expanded program, potentially making U.S. production more competitive with foreign markets. He pointed to workers such as set designers, caterers and local service businesses as beneficiaries of keeping productions closer to home.

The proposal would apply to qualifying feature films, television programs and pilots, including certain post-production and visual-effects work performed in the United States. News programs, live sports, advertising, corporate videos and other categories would be excluded. Productions would generally have to meet requirements for the percentage of filming conducted domestically.

The push for the tax credit is not without potential opposition. Some Republicans have questioned whether the federal government should subsidize the entertainment industry, particularly given the cost of the incentive. Rep. Rich McCormick, R-Ga., previously said he wanted lawmakers to determine whether the tax benefits would generate sufficient returns for taxpayers.

Supporters are seeking to advance the measure as Congress weighs legislation later this year, setting up a debate over whether a federal tax incentive can successfully bring more entertainment production and associated jobs back to American communities.