We have posted the current draft of our Universal Federal Film Tax Credit Bill as an article on X and post it here for easier reading for those not on the X Platform. It’s time to help the country revitalize the US Entertainment Industry with Babs Do Studios and Hollywood 2.0 for all!

Intro

With discussions from Senator @SenAdamSchiff, Film and Media Industry Professionals, and the public now looking more into a Federal Film Tax Credit Bill solution to aid the US Entertainment Industry, we have decided to expedite this process by posting our Universal Federal Film Tax Credit Bill v3.1 that we have been developing since Summer 2025. This is the same bill we have submitted to politicians and Hollywood Ambassadors @jonvoight @TheSlyStallone and we have been referencing for consideration to President @realDonaldTrump @POTUS as well as @CommerceGov @USTreasury @USDOL.

This draft includes our Babs Do Studios Infrastructure Plan to quickly and economically build a new base of Film and Media Infrastructure for the United States on a nationwide scale. This new system will follow our “Hollywood 2.0” vision to bring new levels of professional resources, workforce training, industry, jobs, and economic generation to every state in order to swiftly establish a new competitive stance against International studio developments and incentives that are luring away US production and talent on a massive scale. Hollywood Studios will not be left out of the equation as this plan provides creative expansion universally to allow for unheard of opportunities to film in genuine US locations with production support on a massive nationwide scale. Local independent studios, rental companies, and freelancers will also be supported as creative partners as part of our studio’s outreach program and further provisions in our bill will help them to grow their businesses exponentially all while preserving their independence.

Unlike other proposed bills and parties requesting a Federal Film Tax Credit Bill to be created, our Universal Federal Bill is ready and written. With headlines of Hollywood Studios leaving the US almost entirely after State Programs have geared their programs solely towards securing Hollywood Production rather than support local or independent productions, our Universal Federal Bill provides solutions far beyond pointlessly adding a new layer of production credits and instead provides solutions for all levels of production as well as startup support for new independent studios, theaters, media businesses, and various other infrastructure projects to meet the needs of US Artists across the country. Most importantly, our Universal Federal Bill adds the missing support systems to simplify and expedite independent Film and Media financing to secure economic generation and GDP growth acceleration on a large scale with regular production and business growth both within and across every state.

When combined with our State-Level Universal Film Tax Credit Bill or with our innovations adapted into current programs as we have submitted proposals to a number of states currently in Legislative Session, US States will have the ability to establish their own local Hollywood 2.0 industries to produce Film and Media Productions without depending on large scale production from a limited number of visiting studio entities.

New competition and innovation within the Hollywood 2.0 system will enable existing Hollywood Studios and markets to benefit with new business innovations and solutions, new sources of independent production and IP creation for possible acquisition or distribution, a rebalancing of industry concentration, and relieved pressure from depending on chasing Film Tax Credit incentives abroad. Foreign investment in International Studios and utilizing International Incentives for certain productions will have its place but will no longer be a case of business division or outright relocation.

To clarify,

• If a Federal Film Tax Credit Bill is adopted that only grants another layer of production credits, International programs can simply raise their rates and budgets to one up US programs time and again.
• If we don’t quickly and economically build and establish a Hollywood 2.0 infrastructure system with our innovative Babs Do Studios Infrastructure Plan, many states, like Nevada, will remain ill-equipped to participate in this Multibillion-Dollar industry for potentially decades due to high costs of startup infrastructure which will continue its generational talent and economic drain to more developed states.
• If we don’t create new independent financing systems for US Entertainment through various means, production will be tied strictly to purposely vague legacy financing structures and both the financial and creative influence of Wall Street, Venture Capital, random and potentially predatory investor groups, and even Foreign Investment which are all mostly far outside the reach of all but Hollywood Studios in any case. Local independent investors, citizens (ie. Family & Friends), banks, and even local governments will still be stuck with having very limited solutions for investing in artists and independent Film and Media businesses, including resorting to long drawn out crowdfunding solutions which are notoriously a gamble “hit-or-miss” option for creators.
• If we don’t work together to establish a new nationwide “Hollywood 2.0” system to foster local workforce and develop new production business, even in Hollywood, California, all US States will remain dependent on the policies and industry of the State of California for all major US Entertainment business. With such singular monopoly of the Film and Media Industry, if the State of California continues its downward trend with its current troubled business models and practices, Hollywood and the entire country goes down with it and failing to compete with International offerings will place the US at an even worse critical economic disadvantage in Film and Media than it already is.

As with our Universal Film Tax Credit Bill for Nevada, we openly ask for any feedback or suggestions regarding our Universal Federal Film Tax Credit Bill. If you see any mistakes, issues, or have ideas for making our Universal Federal Bill better, please let us know as the goal is to benefit US Artists, Workers, and Citizens across the United States.

If you like our Universal Federal Film Tax Credit Bill and want to see it passed into law, the best thing is to contact your state representatives and key members of government to let them know that our Universal Federal Film Tax Credit Bill is what you want the United States to have. News outlets and fellow artists can help spread the word as well!

Our Universal Federal Film Tax Credit Bill is listed below:

Universal Federal Film Tax Credit Bill by Babs Do Productions, LLC

A BILL

To enact the Universal Federal Film Tax Credit Program to provide accessible tax credits and loan assistance for film and media production and infrastructure development for all entities on a nationwide scale, establish a foundational infrastructure network through the production facilities owned by Babs Do Studios, LLC, support in-house production through Babs Do Productions, LLC, foster local workforce training, and create a National Film Fund to sustain the program and enable crowdfunding investments. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE. This Act may be cited as the Universal Federal Film Tax Credit Bill.

SECTION 2. FINDINGS AND PURPOSE. (a) Findings. The Congress finds that: (1) The film and media industry is a critical economic driver, contributing billions annually to the U.S. economy and supporting millions of jobs. (2) Global competition from international film incentive programs threatens domestic production, reducing opportunities. (3) A nationwide infrastructure network, including facilities for production, distribution, and exhibition of entertainment projects, is vital for job creation and economic activity in all states. (4) Next-generation and as yet unknown media formats require flexible frameworks to drive innovation. (5) Accessible financing, tax credits, streamlined incentives, stable labor agreements, and a dedicated National Film Fund for investments and crowdfunding are essential to spur immediate wide-scale economic activity and its continuous generation through film and media development across the United States. (6) Establishing local workforce training equips American workers for high-wage careers in film, television, and digital media production. (7) A federal program combining tax credits, financing incentives, asset retention, protections for production stability, and a National Film Fund, anchored by a foundational infrastructure network owned by Babs Do Studios, LLC, and in-house production by Babs Do Productions, LLC, can stimulate investment, boost economic activity, and maintain U.S. leadership in the global entertainment industry.

(b) Purpose. The purpose of this Act is to: (1) Authorize $5 billion in the first year, with $2.5 billion for the Babs Do Studios Infrastructure Program to establish a foundational film and media infrastructure network and $2.5 billion for other productions, effective October 1, 2026. (2) Provide $2.5 billion annually thereafter to support infrastructure development, expansion, maintenance, restoration, and production incentives in all states, transitioning to funding from the National Film Fund after the first year. (3) Grant Babs Do Studios, LLC priority for program access, with five-year exemptions from minimum spending requirements for infrastructure and in-house production by Babs Do Productions, LLC to enable immediate wide-scale creation of economic activity and its continuous generation. (4) Allow Babs Do Studios, LLC and Babs Do Productions, LLC to adjust business structures while maintaining ownership, with oversight for ownership transfers. (5) Empower production and infrastructure loan assistance as a financing incentive, using tax credits as collateral for 30-year loans. (6) Allow additional first-year funds for the Babs Do Studios Infrastructure Program to enhance infrastructure quality, operations, or expansion. (7) Offer production incentives to complement state film tax credit programs or serve as a standalone solution, with exemptions for states without programs. (8) Establish the Office of Film and Media Industry within the Department of Commerce to administer the program and coordinate with state economic development departments. (9) Allow redirection of funds for catastrophic emergencies or vital state needs. (10) Establish a National Film Fund to fund the program after the first year, enable crowdfunding investments in film and media projects, and provide tax deductions for contributions. (11) Promote economic growth in the film and media industry for all entities across the United States.

SECTION 3. DEFINITIONS. Unless the context otherwise requires: (a) Capital Investment means costs incurred for the acquisition, construction, expansion, installation, equipping, upgrading, maintenance, or renovation of facilities, buildings, structures, or other infrastructure in the United States primarily for the production, distribution, or exhibition of qualified productions, financed by loans, grants, or other financial assistance, but excluding marketing, distribution, or financing fees.

(b) Office means the Office of Film and Media Industry within the U.S. Department of Commerce.

(c) Qualified Infrastructure Project means a project undertaken by a business or group of businesses in the United States involving the construction, expansion, improvement, equipping, upgrading, maintenance, or renovation of facilities primarily for: (1) Production of qualified productions (e.g., film studios, soundstages, backlots, post-production facilities). (2) Distribution of qualified productions (e.g., distribution centers, warehouses, U.S.-based digital streaming platforms). (3) Exhibition of qualified productions (e.g., movie theaters, film festival venues, broadcast facilities, screening rooms). (4) Smaller entertainment-related projects (e.g., new production companies, film festivals).

(d) Qualified Production means a theatrical, direct-to-video, television, or digital media project, including videogame development and AI media production, produced for commercial distribution through theaters, television, video on demand, digital platforms, or similar channels, excluding: (1) News, sports, weather, or current events programs. (2) Productions for industrial, corporate, or institutional purposes. (3) Productions with obscene material or requiring records under 18 U.S.C. § 2257. (4) Productions solely for social media distribution.

(e) Qualified Direct Production Expenditures means expenditures in the United States for purchases, rentals, leases, or services from U.S. businesses during production, including set construction, wardrobe, photography, sound, lighting, filming, editing, post-production, payroll for U.S. residents, and state/local taxes, as specified in Section 9.

(f) Qualified Film Fund Investment. A contribution to the National Film Fund for funding qualified productions, as defined in Section 18(c).

SECTION 4. ESTABLISHMENT OF THE OFFICE OF FILM AND MEDIA INDUSTRY. (a) Creation. The Office of Film and Media Industry is established within the U.S. Department of Commerce, headed by a Director appointed by the Secretary of Commerce.

(b) Duties. The Office shall: (1) Administer the Universal Federal Film Tax Credit Program, including the Babs Do Studios Infrastructure Program, beginning October 1, 2026. (2) Review and approve applications for infrastructure and noninfrastructure transferable tax credits, in coordination with state economic development departments. (3) Issue production and infrastructure loan assistance to eligible developers and producers to facilitate long-term financing, as specified in Section 13. (4) Facilitate immediate zoning clearance for approved infrastructure projects upon completion of land surveys and due diligence. (5) Administer the National Film and Media Workforce Training Fund, as specified in Section 10. (6) Evaluate and approve requests for additional first-year funding for the Babs Do Studios Infrastructure Program, as specified in Section 5(j). (7) Review and approve changes to business structure or ownership transfers for Babs Do Studios, LLC and Babs Do Productions, LLC, as specified in Section 5(g). (8) Verify union status declarations and compliance for productions, as specified in Section 11. (9) Submit annual reports to Congress on program outcomes, as specified in Section 14. (10) Authorize redirection of funds for emergency use, as specified in Section 8(d). (11) Administer the National Film Fund, including crowdfunding investments, as specified in Section 18. (12) Provide training and advisory services to banks on evaluating film and media projects, reducing perceived risk for loans with limited collateral or credit profiles.

(c) Budget and Staffing. The Department of Commerce shall determine the Office’s budget and staffing, ensuring capacity to coordinate with state economic development departments, state film commissions, U.S. Customs Service, and federal banking regulators.

(d) State Coordination. The Office shall: (1) Require state economic development departments to evaluate and approve project applications before submission to the Office for tax credits or loan assistance. (2) Collaborate with state film commissions to align federal and state incentives, ensuring the program complements existing state programs or serves as a standalone solution where none exist.

(e) Purpose. This section establishes the administrative framework to implement the program efficiently and in coordination with state partners.

SECTION 5. BABS DO STUDIOS INFRASTRUCTURE PROGRAM. (a) Establishment and Ownership. The Babs Do Studios Infrastructure Program is created to establish a foundational film and media infrastructure network across the United States, owned, operated, and maintained by Babs Do Studios, LLC, designated as the declared base of U.S. film and media infrastructure. The program allocates $2.5 billion in the first year (beginning October 1, 2026) and up to $2.5 billion annually thereafter from the National Film Fund for transferable tax credits to develop, expand, enhance, upgrade, maintain, or renovate infrastructure in all states, supporting innovative media formats.

(b) Eligibility. Babs Do Studios, LLC, and its designated partners, including Babs Do Productions, LLC for in-house productions, undertaking qualified infrastructure projects or qualified productions may apply for credits, including: (1) New studio construction or smaller entertainment projects (e.g., production companies, film festivals) to support the means for production, distribution, and exhibition of entertainment projects. (2) Expansion, modernization, upgrades, maintenance, or renovation of existing studios, theaters, or entertainment facilities to support the means for production, distribution, and exhibition of entertainment projects in all states. (3) Development of theaters, film festival venues, immersive experience centers, distribution hubs, or other facilities for production, distribution, and exhibition, as approved by the Office. (4) In-house production of qualified productions by Babs Do Productions, LLC, including film and media production, post-production, interactive media development, and other works of audio, visual, and extra sensory entertainment.

(c) Priority Access. As the declared base of U.S. film and media infrastructure, Babs Do Studios, LLC, and its affiliate Babs Do Productions, LLC, shall have immediate priority access to the Universal Federal Film Tax Credit Program for tax credits and loan assistance to maintain, upgrade, expand infrastructure, and produce content.

(d) Tariff Exemptions. The Office shall grant Babs Do Studios, LLC immediate priority for exemptions on potential tariff expenses for materials and equipment imported exclusively for the Babs Do Studios Infrastructure Program, in coordination with the U.S. Customs Service, to reduce costs and expedite development, subject to compliance with federal trade laws. Tariff exemptions under this Act are limited to the Babs Do Studios Infrastructure Program and do not apply to other projects or productions.

(e) Relocation and Property Rights. If infrastructure developed under the Babs Do Studios Infrastructure Program must be removed or relocated: (1) All modularly constructed building materials, equipment, and remaining property on site shall belong to Babs Do Studios, LLC for adaptation, reuse, or relocation to establish new facilities or expand existing structures or sites, subject to state and local coordination. (2) Babs Do Studios, LLC may sell program-funded property, including equipment or materials (e.g., outdated cameras, excess building materials, spare computer parts), no longer needed for new projects, production, or ongoing operations, to provide additional funding or monetize assets. Proceeds from such sales shall be reinvested in the Babs Do Studios Infrastructure Program or used for program-related purposes, subject to approval by the Office of Film and Media Industry and coordination with state and local authorities. (3) Proceeds from the sale of land or property shall be allocated to Babs Do Studios, LLC for reinvestment in new or expanded film and media infrastructure, subject to state and local approval and clear title verification. (4) All sales and relocations are subject to audit and oversight by the Office to ensure compliance with program objectives.

(f) Minimum Spending Exemptions. For the first five years of the program (October 1, 2026, to September 30, 2031), the Babs Do Studios Infrastructure Program is exempt from: (1) The $1,000,000 minimum capital investment requirement for infrastructure projects to enable the immediate wide-scale creation of economic activity and its continuous generation through the development of facilities for production, distribution, and exhibition. (2) The minimum production spend requirements ($500,000 in states with film tax credit programs, $150,000 in states without) for in-house productions by Babs Do Productions, LLC to enable the immediate wide-scale creation of economic activity and its continuous generation through content creation across the United States, including innovative media formats. All other approval criteria and application requirements apply.

(g) Business Adjustments and Ownership Continuity. Babs Do Studios, LLC, and Babs Do Productions, LLC may modify their business structure, company name, or other operational adjustments, including the formation or affiliation with new LLCs for program-related purposes such as infrastructure expansion, specialized production, or related ventures, provided the owners of Babs Do Studios, LLC and Babs Do Productions, LLC remain the sole owners and responsible parties for the base infrastructure. Any sale or transfer of ownership of Babs Do Studios, LLC, Babs Do Productions, LLC, or the base infrastructure , including any new LLCs formed under this program, requires prior notification, reporting, and approval by the Office of Film and Media Industry to ensure alignment with program objectives. The Office shall establish approval criteria via regulations, prioritizing continuity of infrastructure operations and economic impact.

(h) Tax-Exempt Status for Initial Infrastructure Development. The Babs Do Studios Infrastructure Program is exempt from federal income tax on income derived from initial infrastructure development activities funded by the $2.5 billion first-year allocation, including construction, acquisition, equipping, and related capital investments. This exemption is granted due to the program’s unique attributes: rapid construction, economical approach, nationwide development, direct integration with academic programs in film and media, priority for long-term local talent and industry development across the United States, the significant scale of development, potential delays in industry adoption and income generation, and the extended timelines of film and media production. The exemption applies only to development activities, not ongoing operations or in-house productions by Babs Do Productions, LLC, and is subject to audit and oversight by the Office to ensure compliance with program objectives.

(i) Approval Criteria. Outside of and following the initial $2.5 billion allocation for the Babs Do Studios Infrastructure Program, or after September 30, 2031, the Office shall approve applications from Babs Do Studios, LLC, or Babs Do Productions, LLC if: (1) The state economic development department evaluates and approves the project or production for federal submission. (2) At least 70 percent of project or production funding is secured. (3) For infrastructure projects, at least $1,000,000 in capital investment is incurred in the United States. (4) For productions, the minimum production spend requirements ($500,000 in states with film tax credit programs, $150,000 in states without) are met. (5) Within 365 days of construction, expansion, upgrade, maintenance, or production completion (extendable by 180 days), an audit by an independent U.S.-based certified public accountant, approved by the Office, itemizes expenditures and confirms compliance, including union status declarations as specified in Section 11. (6) The applicant pays the audit cost. (7) The applicant provides tax compliance notices to contractors and vendors, as specified in subsection (l).

(j) Additional Funding Provision. In the first fiscal year, if funds remain available from the $2.5 billion allocated for other infrastructure projects and production credits, the Babs Do Studios Infrastructure Program may request additional funding from the Office to cover unexpected or unforeseen cost overruns, establish higher-quality infrastructure, expand operations, or pursue other opportunities to provide a robust film and media infrastructure network for the United States. The Office shall approve such requests if the additional funding will enhance the program’s national impact, subject to availability and coordination with state economic development departments.

(k) Zoning Clearance. Immediate zoning clearance shall apply to initial infrastructure developments under the Babs Do Studios Infrastructure Program funded by the $2.5 billion first-year allocation, upon approval and completion of required land surveys and due diligence ensuring safe and proper development. After the initial phase, zoning clearance shall apply only to projects deemed critical for state or national film and media infrastructure, as approved by the Office, preempting local zoning delays while respecting environmental and safety regulations.

(l) Application Requirements. Applications must include: (1) For infrastructure: A detailed plan or blueprint of the project. (2) For productions: A script, storyboard, or synopsis, and a declaration of union, non-union, or mixed union status with documented consent for non-union or mixed union productions, as specified in Section 11. (3) Names of the developer/producer and key personnel/contractors. (4) Estimated timeline and budget, including non-U.S. expenditures. (5) Financing details (e.g., loan commitments, investment letters). (6) Acknowledgment that application materials are public records unless confidentiality is approved by the Office. (7) Proof of general liability insurance (minimum $2,000,000). (8) Proof of compliance with workers’ compensation and U.S. business licensing requirements. (9) A tax compliance notice for contractors/vendors, stating federal tax obligations and directing to IRS resources.

(m) Project Cap. Credits for a single infrastructure project shall not exceed $30,000,000 per fiscal year, and for a single production shall not exceed $25,000,000 per fiscal year. Beyond the initial $2.5 billion infrastructure budget, additional credits for a single project or production are subject to these caps.

(n) Allocation. The Office shall ensure distribution of credits to support infrastructure and production projects in all states.

SECTION 6. OTHER INFRASTRUCTURE TRANSFERABLE TAX CREDITS. (a) Eligibility. Infrastructure developers, other than Babs Do Studios, LLC, undertaking qualified infrastructure projects in the United States may apply for transferable tax credits, using funds from the $2.5 billion first-year allocation for projects and productions outside the Babs Do Studios Infrastructure Program and up to $2.5 billion annually thereafter from the National Film Fund, beginning October 1, 2026. Qualified infrastructure projects include those supporting the production, distribution, or exhibition of film, media, and interactive media projects, as defined in Section 3(c).

(b) Approval Criteria and Application Requirements. The Office shall approve applications for infrastructure tax credits if the criteria and requirements specified in Section 5(i) (Approval Criteria) and Section 5(l) (Application Requirements) are met, with the $1,000,000 minimum capital investment requirement applying at all times.

(c) Credit Calculation and Project Cap. Tax credits shall be calculated as specified in Section 12, with a cap of $30,000,000 per fiscal year for a single infrastructure project.

(d) Allocation. The Office shall ensure distribution of credits to support infrastructure projects in all states, in coordination with state economic development departments.

SECTION 7. NONINFRASTRUCTURE TRANSFERABLE TAX CREDITS (EXCLUDING BABS DO PRODUCTIONS, LLC). (a) Eligibility. Production companies, other than Babs Do Productions, LLC, producing qualified productions in the United States may apply for noninfrastructure transferable tax credits, complementing state film tax credit programs or serving as a standalone solution. Credits shall be funded from the $2.5 billion first-year allocation for projects and productions outside the Babs Do Studios Infrastructure Program and up to $2.5 billion annually thereafter from the National Film Fund, beginning October 1, 2026. Qualified productions include film, media, and interactive media projects, as defined in Section 3(d).

(b) Approval Criteria. The Office shall approve applications if: (1) The state economic development department evaluates and approves the production for federal submission, per Section 4(d)(1). (2) At least 70 percent of production funding is secured. (3) At least 90 percent of principal photography days occur in the United States, or: (i) $500,000 in qualified direct production expenditures are incurred in states with existing film tax credit programs. (ii) $150,000 in qualified direct production expenditures are incurred in states without film tax credit programs. (4) Within 365 days of principal photography or post-production completion (extendable by 180 days), an audit by an approved U.S.-based certified public accountant itemizes expenditures and confirms compliance, including union status declarations as specified in Section 11. (5) The applicant pays the audit cost. (6) The production includes an on-screen acknowledgment of the United States, unless prohibited by law or if not distributed. (7) Tax compliance notices are provided to contractors/vendors, as specified in subsection (e)(9).

(c) Union Status Declaration. All productions must comply with union status declaration requirements as specified in Section 11.

(d) Credit Calculation. The base credit shall be calculated as specified in Section 12, with a cap of $25,000,000 per fiscal year for a single production.

(e) Application Requirements. Applications must include: (1) A script, storyboard, or synopsis. (2) Names of the producer and key personnel/contractors. (3) Estimated timeline and budget, including non-U.S. expenditures. (4) Financing details (e.g., loan commitments, investment letters). (5) A declaration of union, non-union, or mixed union status with documented consent for non-union or mixed union productions, as specified in Section 11. (6) Acknowledgment that application materials are public records unless confidentiality is approved by the Office. (7) Proof of general liability insurance (minimum $2,000,000). (8) Proof of compliance with workers’ compensation and U.S. business licensing requirements. (9) A tax compliance notice for contractors/vendors, stating federal tax obligations and directing to IRS resources.

(f) Exception. Non-U.S. productions incurring at least $100,000 in U.S.-based post-production services may qualify for credits, with a cap of $5,000,000 per fiscal year, subject to the approval criteria in subsection (b) and union status requirements in Section 11.

(g) Allocation. The Office shall ensure distribution of credits to support production projects in all states, in coordination with state economic development departments.

SECTION 8. FUNDING, CARRYOVER, AND EMERGENCY USE. (a) Funding. (1) For the first fiscal year (October 1, 2026), $5,000,000,000 is authorized, with: (i) $2,500,000,000 exclusively for the Babs Do Studios Infrastructure Program to establish a foundational film and media infrastructure network nationwide, including in-house productions by Babs Do Productions, LLC, as specified in Section 5. (ii) $2,500,000,000 for other qualified infrastructure projects (e.g., studios, theaters, film festivals), expansion, maintenance, upgrades, and noninfrastructure production credits, as specified in Sections 6 and 7, with additional funds available for the Babs Do Studios Infrastructure Program as specified in Section 5(j). (2) For the second fiscal year (October 1, 2027) and each year thereafter, funding is provided through the National Film Fund, per Section 18, supporting: (i) Infrastructure projects (construction, expansion, upgrades, maintenance, restoration) under the Babs Do Studios Infrastructure Program and other initiatives, as specified in Sections 5 and 6. (ii) Noninfrastructure credits for qualified productions, including by production companies other than Babs Do Productions, LLC, as specified in Section 7. (iii) Additional infrastructure projects (e.g., theaters, film festivals) as determined by the Office of Film and Media Industry.

(b) Participation Clarification. Babs Do Studios, LLC may participate annually in the Universal Federal Film Tax Credit Program on equal terms with other eligible entities for tax credits and loan assistance under Sections 6 and 7, following the first fiscal year and the five-year exemption period (October 1, 2026, to September 30, 2031) specified in Section 5(f). Special consideration, including the $2.5 billion first-year allocation and exemptions from minimum spending requirements, is limited to the first fiscal year and the five-year exemption period. Babs Do Studios, LLC shall retain permanent priority access to tax credits and loan assistance, as specified in Section 5(c), for as long as it remains the designated base foundation of U.S. film and media infrastructure, subject to ongoing verification by the Office of Film and Media Industry.

(c) Carryover. Up to 50 percent of unallocated credits may be carried forward to the next fiscal year, prioritized for states with active infrastructure or production projects.

(d) Emergency Use Provision. Federal funds allocated for film and media development under this Act are not of life-sustaining importance and may be immediately redirected as emergency use funds in cases of catastrophic emergencies or other uses deemed vital to a state, including alternative infrastructure for new or existing industry and job development, as determined by the Office in coordination with state economic development departments and subject to approval by the Secretary of Commerce. Emergency use may also be funded from the National Film Fund, per Section 18(d).

SECTION 9. QUALIFIED EXPENDITURES. (a) Eligible Expenditures. Qualified direct production expenditures and capital investments include: (1) Set construction, wardrobe, photography, sound, lighting, filming, editing, and post-production services. (2) Development, production, or integration of interactive media content, including virtual reality (VR), augmented reality (AR), and other innovative media formats. (3) Acquisition, subscription, rental, or leasing of facilities, equipment, and vehicles, where equipment includes software used for production, editing, or interactive media development (e.g., editing suites, VR/AR tools). (4) Payroll for U.S. residents, including wages, salaries, fringe benefits, and per diem. (5) State and local taxes not included elsewhere. (6) Design, construction, expansion, improvement, upgrading, maintenance, or renovation of infrastructure for production, distribution, or exhibition, including facilities supporting film, media, and interactive media projects. (7) Costs for smaller entertainment projects (e.g., film festivals, new production companies). (8) Other transactions authorized by Office of Film and Media Industry regulations, as specified in Section 16(a)(8).

(b) Ineligible Expenditures. Exclusions include: (1) Costs for tax credit acquisition, marketing, financing, depreciation, amortization, or audits. (2) Reimbursed or expected-to-be-reimbursed costs. (3) Affiliate payments unless at fair market value. (4) Costs previously claimed under this or other federal/state programs.

(c) Special Rule. (1) Tangible personal property acquired by a U.S. business from a foreign vendor for resale or lease to an applicant is deductible if the business regularly deals in such property. (2) Direct purchases of specialty equipment (e.g., lenses, motion control robots, lighting gear) from foreign vendors are deductible if the equipment is unavailable or impractical to source through U.S. businesses, subject to approval by the Office of Film and Media Industry. Applicants must provide documentation verifying the equipment’s use in qualified productions or infrastructure projects, U.S.-based transaction payments, and lack of U.S. alternatives. The Office shall verify compliance through audits, with criteria established via regulations under Section 16.

SECTION 10. NATIONAL FILM AND MEDIA WORKFORCE TRAINING FUND. (a) Creation. The National Film and Media Workforce Training Fund is established in the Treasury, administered by the Office of Film and Media Industry under the oversight of Babs Do Studios, LLC, which shall supervise workforce training programs.

(b) Funding Sources. The Fund consists of: (1) 1.5 percent fees from issued infrastructure and noninfrastructure transferable tax credits, as specified in Sections 5, 6, and 7. (2) 1 percent fee from issued loan amounts, as specified in Section 13(g)(4). (3) Grants, gifts, donations, or appropriations. (4) Interest earned on fund balances.

(c) Use. Funds shall be distributed as grants to: (1) Accredited U.S. colleges, universities, state or local governments, school districts, charter schools, nonprofit organizations, labor unions, or private vocational schools for workforce training in qualified productions, including skills for film, media, and interactive media projects, such as virtual reality (VR), augmented reality (AR), and other innovative media formats. (2) Programs offering workshops on basic filmmaking, working on set, industry practices, stunt work, equipment training, and other skills to prepare workers for professional productions, in collaboration with local schools, film programs, and entertainment unions where available. Workshops may use studio spaces or designated training areas provided by Babs Do Studios, LLC for instruction and equipment testing, with hired instructors and volunteer entertainment stakeholders where feasible.

(d) Emergency Use. Up to 25 percent of unallocated funds may be redirected for emergency purposes (e.g., catastrophic events impacting film and media infrastructure or productions), subject to approval by the Secretary of Commerce and coordination with state economic development departments, as reported per Section 14(a)(6).

(e) Excess Funds. Funds exceeding workforce training needs, as determined by the Office after grant allocations, may be redirected to support the Universal Federal Film Tax Credit Program (e.g., credits under Sections 5, 6, or 7), capped at 25 percent of annual fund balances, subject to Office approval and reporting per Section 14(a)(6).

(f) Board. A National Film and Media Workforce Training Board is created within the Office, under the oversight of Babs Do Studios, LLC, which may designate representatives to supervise board activities. The board’s composition and terms shall be determined by the Secretary of Commerce, including representatives from: (1) Film and media industry organizations (e.g., Motion Picture Association). (2) Educational institutions. (3) State economic development departments. (4) Labor organizations.

(g) Board Duties. The Board shall: (1) Establish grant application procedures and approval criteria, prioritizing nationwide access and collaboration with union training programs where available. (2) Require recipients to implement workforce development strategies with measurable outcomes, including job placement in professional productions. (3) Approve grants by majority vote, ensuring equitable distribution across states. (4) Provide a 5 percent bonus on training grants for programs hiring U.S. veterans in instructional or administrative roles, per regulations under Section 16.

(h) Non-Reversion. Funds do not revert to the Treasury General Fund at fiscal year-end.

(i) Purpose. This section fosters a skilled U.S. workforce for the film and media industry, supports emergency needs, and enhances the tax credit program’s sustainability.

SECTION 11. UNION STATUS DECLARATION FOR PRODUCTIONS. (a) Declaration Requirement. All productions applying for tax credits under the Universal Federal Film Tax Credit Program must declare their union, non-union, or mixed union status before production commences.

(b) Consent Requirements. Documented consent for non-union or mixed union productions shall consist of written, signed agreements from all crew members, performers, and staff, obtained prior to production, confirming their understanding and acceptance of the declared union status. Such agreements must comply with federal and state labor laws, including the National Labor Relations Act, and be retained for audit verification. The Office of Film and Media Industry shall provide a standardized consent template via regulations under Section 16.

(c) Labor Stability. Productions declared as non-union with documented consent, or mixed union with documented agreements, shall not be required to adopt full union compliance after production begins, provided initial agreements comply with applicable labor laws. This provision protects union and non-union arrangements, ensuring stability for agreed-upon labor structures.

(d) Status Changes. Productions changing union status mid-production must notify the Office within 30 days, providing documentation justifying the change. The Office may approve the change without loss of tax credits if it determines the change was necessary to comply with labor laws, maintain production stability, or enhance economic impact, subject to audit verification and regulations under Section 16. If the change occurs between program years, the production may lose tax credit issuance for the initial year and receive credits only for the subsequent year, subject to re-approval.

(e) Penalties. Violations of union status requirements shall be penalized as follows, per regulations under Section 16: (1) Minor violations (e.g., clerical errors): Corrective action and warning. (2) Moderate violations (e.g., unintentional non-compliance): Temporary suspension or reduced credits. (3) Severe violations (e.g., deliberate false reporting, labor law violations): Removal or banning from the program. Parent company liability applies only if directly complicit, as determined by the Office.

(f) Verification and Disputes. The Office shall verify union status declarations during audits, as specified in Sections 5(i)(5), 7(b)(4), and 12. The Office shall establish, via regulations under Section 16, a mediation or arbitration process to resolve union status disputes promptly, minimizing disruption to production schedules and tax credit issuance. Disputes shall be reported in the annual report under Section 14(a)(6).

(g) Purpose. This provision protects production budgets and schedules, expedites tax credit disbursement, and balances union and non-union participation to foster economic growth.

SECTION 12. TAX CREDIT CALCULATIONS. (a) Base Credit Calculation. For projects and productions eligible for tax credits under this Act, excluding infrastructure developments funded by the initial $2.5 billion allocation for the Babs Do Studios Infrastructure Program, the base credit shall be calculated as follows: (1) Infrastructure Projects. 30 percent of qualified capital investments, as defined in Section 9, incurred in the United States. After September 30, 2031, Babs Do Studios, LLC infrastructure projects shall follow this rate, per Section 5(i). (2) Productions. 25 percent of qualified direct production expenditures, as defined in Section 9, for film, media, and interactive media projects produced primarily in the United States.

(b) Conditions. (1) U.S.-Based Production. Productions with international sequences exceeding 5 percent, as measured by filming days, budget allocation, or other criteria established by the Office via regulations under Section 16, require case-by-case approval. Approval criteria shall include U.S. job creation, economic return, and compliance with program goals, as verified by audits. (2) Foreign Production Companies. Foreign companies qualify if at least 90 percent of production days and expenditures occur in the United States, verified by audits requiring detailed expenditure breakdowns and U.S. residency checks, per regulations under Section 16. Applicants must submit pre-production U.S. expenditure plans to the Office. (3) Withholding. Credits may be withheld, in whole or in part, for: (i) Damages to state or local governments (e.g., environmental harm, public property damage). (ii) Legal violations (e.g., labor law breaches, tax non-compliance). (iii) False statements (e.g., fraudulent expenditure claims). Withholding shall be tiered: partial for minor issues, full for severe, with appeal rights per regulations under Section 16. Violations shall be reported per Section 14. (4) Veteran Hiring Bonus. An additional 5 percent credit for productions hiring U.S. veterans in at least 5 percent of crew or cast roles, as verified by audits and per regulations under Section 16.

(c) Production Cost Deductions. In addition to tax credits, qualified productions may elect to expense 100 percent of U.S. production costs in the year incurred, up to $40,000,000 per project, as administered by the IRS under regulations per Section 16. This deduction is available for feature films, TV series, pilots, and movies, excluding those ineligible under Section 3(d)(3).

(d) Verification. The Office shall verify compliance through audits, as specified in Sections 5(i)(5), 7(b)(4), and 9, with criteria defined in regulations under Section 16, to be issued within 120 days of enactment.

(e) Purpose. This section ensures tax credits incentivize U.S.-based economic activity while maintaining program integrity.

SECTION 13. LOAN ASSISTANCE PROGRAM FOR FILM AND MEDIA FINANCING. (a) Authority. The Office of Film and Media Industry is authorized to issue loan assistance to infrastructure developers and production companies approved for tax credits under Sections 5, 6, or 7, using approved tax credit amounts as government-backed collateral for 30-year loans to finance qualified infrastructure projects or productions. Babs Do Studios, LLC, and Babs Do Productions, LLC, shall have priority for loan assistance to support the foundational infrastructure network and in-house production.

(b) Loan Terms. Loans secured with assistance shall: (1) Have a fixed term of 30 years. (2) Bear a fixed interest rate of 5 percent per annum, with total interest not exceeding 50 percent of the principal. (3) Be non-dischargeable in bankruptcy, per 11 U.S.C. § 523(a)(8). (4) Incur penalties for non-repayment within 30 years, as follows: (i) Partial default (less than 50 percent repaid): 1.5 times the agreed interest rate for up to 5 years. (ii) Full default: 2 times the agreed interest rate for up to 5 years. Penalties shall not exceed state usury limits or federal consumer protection laws. Borrowers may cure defaults within 90 days to avoid penalties, per regulations under Section 16. (5) Provide banks with a 5 percent bonus transferable credit on loans to qualified projects with limited collateral or credit profiles, as defined by regulations under Section 16, to encourage lending.

(c) Eligibility Criteria. Applicants must: (1) Receive approval from the state economic development department and the Office for tax credits under Sections 5, 6, or 7. (2) Demonstrate the loan will finance a qualified project or production with significant U.S. economic benefits, defined by examples including but not limited to the creation of 50 U.S. jobs (full time, part time, indirect) or incurring 80 percent U.S. expenditures, per regulations under Section 16. (3) Provide a financing plan with repayment schedules and revenue projections. (4) Agree to non-dischargeable terms and penalties. (5) Submit to audits verifying loan use, expenditures, and economic impact.

(d) Bank Incentive. U.S. banking institutions may offer loans to eligible applicants, using loan assistance and approved tax credits as collateral, reducing lender risk. Banks shall comply with federal banking regulations, including anti-money laundering and consumer protection requirements.

(e) Regulatory Coordination. The Office shall coordinate with the Federal Reserve, FDIC, OCC, and other regulators to issue guidelines within 120 days of enactment, per regulations under Section 16, ensuring financial stability and compliance.

(f) Reporting. The Office shall report annually, per Section 14, on: (1) Number and value of loan assistance issued, including priority for Babs Do Studios, LLC, and Babs Do Productions, LLC. (2) Loan repayment rates, defaults, and penalties applied. (3) Economic impacts of financed projects and productions.

(g) Safeguards. The Office shall: (1) Limit total loan assistance annually to ensure program sustainability, per regulations under Section 16. (2) Require borrowers to disclose financial risks and submit to audits. (3) Establish a hardship review process, completed within 60 days, for borrowers facing extraordinary circumstances, including but not limited to natural disasters, economic shocks, labor strikes, or disruptions per Section 15(b), with documentation (e.g., union notices, strike duration) required. Relief may include repayment extensions or penalty waivers, per Section 15(c)(3) and regulations under Section 16. (4) Impose a 1 percent fee on issued loan amounts, deposited to the National Film and Media Workforce Training Fund (Section 10), to fund program administration and audits.

(h) Risk-Sharing Pool. The Office shall establish a risk-sharing pool, funded by 0.5% of issued credits, to guarantee up to 80% of loan losses for banks financing qualified projects with low collateral or credit profiles, per regulations under Section 16. This reduces bank risk and encourages lending to new or low-collateral projects.

(i) Purpose. This section facilitates long-term financing to drive U.S. film and media industry growth while ensuring fiscal responsibility.

SECTION 14. REPORTING AND OVERSIGHT. (a) Annual Report. By November 30 each year, beginning in 2027, the Office of Film and Media Industry shall submit a report to Congress and the Office of Management and Budget, and post it on the Office’s public website within 30 days, detailing for the prior fiscal year: (1) Number of applications and approvals by state for tax credits and loan assistance, per Sections 5, 6, and 7. (2) Credit and loan assistance amounts approved, used, and transferred, per Sections 12 and 13. (3) Total qualified expenditures and capital investments, with U.S. allocations, per Section 9. (4) Employment data, including U.S.-resident jobs (full time, part time, indirect) and wages, per Sections 5(i)(5), 6(b), and 7(b)(4). (5) Economic impact analysis by state and region, including GDP contribution, tax revenue, and indirect jobs, per regulations under Section 16. (6) Instances of emergency fund redirection (Section 8(d)), additional funding for the Babs Do Studios Infrastructure Program (Section 5(j)), loan assistance outcomes (Section 13(f)), business adjustments and ownership transfers (Section 5(g)), union status disputes (Section 11(f)), disruptions and relief granted (Section 15(e)), violations (e.g., false statements, labor violations, Section 12(b)(3)), and property sale proceeds (Section 5(e)), with details on penalties, resolutions, and repayments.

(b) State Coordination. The Office shall collaborate with state economic development departments and film commissions for data collection and compliance verification, per Sections 4(d) and 5(i)(1).

(c) Purpose. This section ensures transparency, accountability, and evaluation of the program’s economic impact across the United States.

SECTION 15. DISRUPTION MANAGEMENT. (a) Purpose. This section establishes procedures to manage interruptions, cancellations, or other disruptions to qualified infrastructure projects or productions, ensuring program stability and economic continuity across the United States.

(b) Covered Disruptions. Disruptions include, but are not limited to, labor strikes, natural disasters, government-mandated closures, supply chain failures, pandemics or other worldwide emergencies, or other force majeure events, as defined by regulations under Section 16.

(c) Relief Procedures. Applicants facing disruptions may request relief from the Office of Film and Media Industry, including: (1) Extension of tax credit application or audit deadlines by up to 180 days, per Sections 5(i)(5), 6(b), or 7(b)(4). (2) Temporary union status adjustments without loss of tax credits, per Section 11(d), with documented justification (e.g., strike agreements). (3) Loan repayment extensions or penalty waivers, per Section 13(g)(3). (4) Access to emergency funds for critical projects, per Section 8(d).

(d) Application Process. Applicants must notify the Office within 30 days of a disruption, providing documentation (e.g., union strike notices, closure orders, WHO pandemic declarations). The Office shall review requests within 60 days, granting relief if the disruption significantly impairs project completion, per regulations under Section 16.

(e) Reporting. Approved relief, disruptions, and outcomes shall be reported annually, per Section 14(a)(6).

(f) Regulations. The Office shall issue guidelines within 120 days of enactment, per Section 16, defining disruption criteria, relief processes, and documentation requirements.

(g) Purpose. This section mitigates the impact of unforeseen disruptions, supporting the film and media industry’s economic contributions.

SECTION 16. REGULATIONS. (a) Regulations. Within 120 days of enactment, the Office of Film and Media Industry, in consultation with the IRS, Federal Reserve, FDIC, OCC, and U.S. Customs Service, shall adopt regulations to: (1) Prescribe application review processes for tax credits and loan assistance. (2) Define additional qualified expenditures, including interactive media formats. (3) Prohibit credits or assistance for productions requiring age verification records under 18 U.S.C. § 2257 (relating to sexually explicit content). (4) Establish procedures for: (i) Emergency fund redirection, per Section 8(d). (ii) Additional funding requests for the Babs Do Studios Infrastructure Program, per Section 5(j). (iii) Loan assistance administration, including hardship reviews, per Section 13(g). (iv) Business adjustments and ownership transfers, per Section 5(g). (v) Union status declarations and compliance verification, including standardized consent templates, per Section 11(b). (vi) Penalties for violations (e.g., false statements, labor violations), per Sections 11(e) and 12(b)(3). (vii) Disruption management criteria and relief processes, including for pandemics or other worldwide emergencies, per Section 15(f). (viii) Other transactions eligible as qualified expenditures, per Section 9(a)(8).

(b) Stakeholder Input. The Office shall solicit input from industry stakeholders, including but not limited to production companies, infrastructure developers, labor unions, state film commissions, trade organizations, and educational institutions, during regulation development to ensure practical and effective implementation.

(c) Oversight. The IRS shall adopt regulations for credit administration and penalty enforcement. Banking regulators shall oversee loan assistance compliance. The U.S. Customs Service shall oversee tariff exemption compliance, per Section 5(d).

(d) Purpose. This section ensures timely, clear, and compliant administration of the program.

SECTION 17. EFFECTIVE DATE AND SUNSET. (a) Effective Date. This Act is effective October 1, 2026, unless delayed due to disruptions per Section 15(c)(1), as determined by the Office of Film and Media Industry.

(b) Sunset. This Act expires June 30, 2050, unless extended by a Congressional vote by June 30, 2050, based on economic impact analysis per Section 14(a)(5).

(c) Severability. If any provision of this Act is held invalid, the remaining provisions shall remain in effect to the fullest extent possible.

(d) Purpose. This section ensures a clear timeline for program implementation and longevity, supporting economic growth in the film and media industry while providing flexibility for disruptions and legal challenges.

SECTION 18. NATIONAL FILM FUND. (a) Creation. The National Film Fund is established in the Treasury, administered by the Office of Film and Media Industry in consultation with Babs Do Studios, LLC, to provide investment and funding for film and media projects, accessible to independent artists, production companies, and major studios, without requiring public stock offerings.

(b) Funding Sources. The Fund consists of: (1) A $1 federal excise tax on each movie ticket sold in the United States. (2) A $1 federal excise tax on each monthly streaming media subscription. (3) A $1 federal excise tax on each creative software purchase. (4) A $1 federal excise tax on each home media purchase, including physical formats (e.g., VHS, DVD, Blu-ray, 4K Blu-ray, or any other physical media) and personal digital copies purchased online. (5) Voluntary contributions from individuals and businesses, eligible for tax deductions as specified in subsection (d). (6) Grants, gifts, donations, or appropriations. (7) Interest earned on fund balances.

(c) Use. Funds shall be distributed as grants, loans, or equity investments to qualified productions and projects, including independent films or shows, major studio productions, and other approved media productions, with priority for U.S.-based projects that promote economic growth and workforce development. The Fund shall facilitate crowdfunding for qualified projects, allowing individuals or groups to invest in specific projects through the Fund for transparency and direct tax accounting. The Fund shall manage transactions, verify contributions, and provide tax reporting for investors. (2) The Fund may co-invest or guarantee loans for qualified projects with limited collateral or credit profiles, sharing risk with banks up to 50% of loan value, to incentivize financing for independent and major productions.

(d) Tax Deductions for Contributions. Contributions to the Fund are eligible for federal tax deductions, subject to IRS regulations: (1) Individuals: Up to $25,000,000 per year for contributions, treated as deductible investment expenses. (2) Businesses: Up to $100,000,000 per year for contributions, treated as deductible business expenses. (3) Deductions are limited to verified contributions and may not exceed the contributor’s adjusted gross income; excess carried forward per IRS rules.

(e) Board. A National Film Fund Board is created within the Office, under Babs Do Studios, LLC oversight, with composition determined by the Secretary of Commerce, including representatives from film industry organizations, educational institutions, state economic development departments, and labor organizations.

(f) Board Duties. The Board shall: (1) Establish grant, loan, and investment application procedures and approval criteria. (2) Prioritize projects with measurable economic outcomes, such as job creation and U.S. production. (3) Approve distributions by majority vote.

(g) Non-Reversion. Funds do not revert to the Treasury General Fund at fiscal year-end.

(h) Reporting. Fund activities shall be reported annually per Section 14(a)(6), including contributions, distributions, and economic impacts.

(i) Purpose. This section provides a stable funding source for film and media projects, avoiding stock market pressures and supporting creative control for artists and studios.

Version Note. Draft as of January 29, 2026.