We have a few updates regarding the state of Babs Do as we begin Summer 2026! There are some things we can talk about and others that are in the works that we can’t discuss openly. Depending on how things progress or not, we will have more to say on those subjects but, for now, here are the updates we can share!:

Universal Bills

After some professional feedback, considerations from various parties, and industry developments, we have updated our base Universal Film Tax Credit Bill and our Universal Federal Film Tax Credit Bill to provide an even better path forward for the U.S. Entertainment Industry!

Universal Film Tax Credit Bill for Nevada

The first major bill to be updated is our Universal Film Tax Credit Bill for Nevada. Any adaptations and innovative amendments presented to other states are based on this bill and some of those efforts have informed these new additions. The biggest updates have been to the overall size of the program in order to respond to the current state of the economy, tech prices, and other factors. As we have stated before, Nevada is a state starting from the ground up compared to most states, it needs to be able to jumpstart competitive industry and business right away once our Universal Film Tax Credit Bill is passed and we believe these new updates support that!

• For this new draft we targeted the structure of the program that originally created a new board to manage it but we decided that the current departments and revamped Film Nevada offices can more readily handle the program without having to juggle responsibilities with an entirely new board.

• On top of that the budget numbers have been boosted with a new program budget of $125 Million Dollars to provide wider statewide Nevada infrastructure and business development in Film & Media as well as increased production numbers.

• The third biggest update has been added support for Film & Media Union workers with protections against noted industry ploys and schemes that have harmed union-based Hollywood and Nevada production union workers for some time.

As stated at the beginning, our program is aimed to support everyone, union and non-union, and our bill succeeds with that aspect but as we were informed by union leaders, there are some unprecedented situations that should be accounted for and if we want the strongest Film Tax Credit Bill to provide for all Film & Media artists, workers, and students, then we need to be sure to be as comprehensive as possible.

While we have just started our campaign for our Universal Bill in Nevada, we have already made excellent progress with union coordination and positive feedback from industry members and we will be reaching out to Nevada leaders and additional parties to gain support and secure sponsorship for our bill to be included in the 2027 Nevada Legislative Session. For now, we’ll keep the currently updated draft of our bill under wraps as we continue to bring it forward with more potential advancements to come.

Federal Bill

Our Universal Federal Film Tax Credit Bill has been revamped from the ground up with some major changes and course corrections to make sure that the bill provides as much wide ranging development and business growth in Film & Media across the U.S. as possible.:

• The largest change in the bill has been the complete removal of the Babs Do Studios Infrastructure Plan. While Babs Do Studios has consistently been far ahead of the industry in many ways, we realized in meetings and discussions that there is still a lot of groundwork that needs to be done in many states before we can secure the proper business and learning environments for advanced Film & Media industry that our new-age studios could provide. With this change of strategy in mind, we decided to instead provide a $5 Billion Dollar first year jumpstart period with the program to enable a much broader range and variety of startup business, infrastructure development, and production support in Film & Media than was possible before. We can still build multi-state Babs Do Studio developments but at a much more manageable and practical pace than immediately starting our studios everywhere all at once.

• In addition, we have also revamped the National Film Fund aspect after consideration for easier management for the fund and put in provisions that line up with currently used government methods to manage similar kinds of fund programs.

• We have also added protections to the bill to preserve its function to solely benefit the growth of existing U.S. businesses and to start up new U.S. businesses for the sake of new nationwide jobs and industry. These protections ensure that the program does not directly or indirectly benefit companies invested in the very international developments and business practices that are taking away U.S. production work opportunities and domestic business and infrastructure growth.

• The budget levels for the program have also been adjusted to help expand opportunities for larger infrastructure development as well as increased production.

During our talks with various parties, it became clear that we are indeed on the right track with our Universal Federal Bill to offer more than just another basic layer of production credits. There are problems with the way the Film & Media industry works and Hollywood’s current production decline continues to show this. Having more options for independent funding and producing Film & Media projects in the United States is perhaps the most significant and important aspect of our Universal Federal Film Tax Credit Bill. While we await further feedback, we will post the full updated Version 4 of our Universal Federal Film Tax Credit Bill below.

Industry News

Once again, Babs Do has been ahead of the industry as two new reports have come out with new questions being asked in Albuquerque, New Mexico and even internationally in the UK Film & Media industry regarding the need for local Film & Media industry development as opposed to the current strategy of building sound stages exclusively for Hollywood production.

In Albuquerque, New Mexico, the report states that multiple $50+ Million Dollar productions have had to be turned away as there simply isn’t enough workforce available in the area to support them. The report details the disconnect between time to train, union/non-union conflict, and even training for line producers experienced with the New Mexico Film Tax Credit Program which have all fallen behind with the level of production activity in the state due to the popularity of the New Mexico Film Tax Credit Program. Additional factors include the top budget of the program needing to be increased to add wider volume for increased production numbers as well as the critical need for local housing and hospitality development to support the growing influx of temporary and full time workforce which then also calls for increased water infrastructure to augment the already strained water resources in the state. Overall it is a good and excellent thing that Film & Media industry in New Mexico is popular but the state clearly has some growing pains to meet this exciting demand.

In the United Kingdom, the same problem that is affecting US Film Tax Credit Programs and US Sound Stage Development and that is squarely aimed at “Hollywood Dependence”. The number of sound stages being built across England are effectively being built to support the major production flight coming from Hollywood and concerns over local production and talent development are now becoming a bigger issue with UK crews and talent facing job shortages and film financing shortages for all but the highest end productions or those dedicated to Hollywood projects. A new survey shows that nearly 40 percent of the freelancer workforce in the UK have stated that they plan to leave the Film & Media industry entirely which shows that, just like the US, neglecting local development that shapes the next generations of Film & Media development and focusing only on a handful of big budget productions will ultimately derail the entire industry and actually harm its future growth. No better example exists than what happened in Georgia when Disney and Marvel left the state with empty sound stages and no backup work opportunities as there weren’t any significant local production companies or working local studios to make up for the loss. Only now has there been reports of progress in increasing local production and industry development in Georgia.

This is why we have to move forward with Babs Do Studios and our Universal Film Tax Credit Bills on the State and Federal levels at the same time.

• The US needs a new-age independent film studio like Babs Do Studios that supports local production and training just as much as it supports high-end Hollywood production as well as serving the country’s greater infrastructure development with plans to build across multiple states and potentially on a nationwide scale with added electricity and water infrastructure where needed.

• To support that, states should adopt new innovative support for Film & Media infrastructure development like in our Universal Film Tax Credit Bill to make developments like Babs Do Studios possible within their states and to to open up new business opportunities for other artists and entrepreneurs to innovate as well.

• The Federal level of our Universal Film Tax Credit Bill can benefit everyone with support on a nationwide scale to create new levels of infrastructure and production anywhere in the country with a program that creates a new layer of self-sustaining Film & Media tax credits, even in states without their own programs. Beyond tax credits, the Federal level also enables the creation of the the missing systems to allow the freedom for independent financing in Film & Media universally both from and to the benefit of individuals, local banks, local governments, and local businesses that wish to directly invest in Film & Media infrastructure and production projects.

Altogether, U.S. Entertainment needs new industry-wide innovation and programs like those offered by Babs Do. It is time for change and to move beyond the clearly very outdated business models and systems that have continued to fail for some time. The best path, we believe, is one that involves everyone working together to build new with “Hollywood 2.0” and our Universal Bills in place in as many states and on as many structural levels as possible for all to benefit.

“The Diner” Movie

We have hit a major milestone with our long in post-production film, “The Diner”. Picture-lock is imminent and streamlined 7.1 audio post-production is the next phase.

Next Projects and Classified

We now have a number of projects under consideration for our next Babs Do Productions projects. Our comedy film is still in the lead but “classified” business could change a number of things. Now, we’re not getting our hopes up too much as, like past opportunities, there’s a lot of moving gears and other parties involved that could move things forward or stop them in their tracks. In this case, we are very, very positive about our position and the potential this plan for “classified” has. If things progress to where we can talk about “classified”, we will, hopefully it will be soon! Until then, stay tuned to all things Babs Do!

Universal Federal Film Tax Credit Bill v4

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, 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) Next-generation and as yet unknown media formats require flexible frameworks to drive innovation. (4) 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. (5) Establishing local workforce training equips American workers for high-wage careers in film, television, and digital media production. (6) A federal program combining tax credits, financing incentives, asset retention, protections for production stability, and a National Film Fund 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 effective October 1, 2026 to expedite nationwide film and media business and infrastructure development. (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) Empower production and infrastructure loan assistance as a financing incentive, using tax credits as collateral for 30-year loans. (4) Offer production incentives to complement state film tax credit programs or serve as a standalone solution, with exemptions for states without programs. (5) Establish the Office of Film and Media Industry within the Department of Commerce to administer the program and coordinate with state economic development departments. (6) Allow redirection of funds for catastrophic emergencies or vital state needs. (7) 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. (8) 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, archives, 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 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 expedited 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) Verify union status declarations and compliance for productions, as specified in Section 11. (7) Submit annual reports to Congress on program outcomes, as specified in Section 14. (8) Authorize redirection of funds for emergency use, as specified in Section 8(d). (9) Administer the National Film Fund, including crowdfunding investments, as specified in Section 18. (10) 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. APPROVAL CRITERIA (a) Approval Criteria. The Office shall approve applications for federal incentives for infrastructure projects and productions 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 federal 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 (d).

(b) Additional Funding Provision. In the first fiscal year, if funds remain available from the $5 billion allocated, infrastructure project applicants 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 on an expedited basis. 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.

(c) Zoning Clearance. Expedited zoning clearance shall apply to initial infrastructure developments funded by the $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, expedited 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.

(d) 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.

(e) Project Cap. Credits for a single infrastructure project shall not exceed $85,000,000 per fiscal year, and for a single production shall not exceed $50,000,000 per fiscal year. Beyond the initial $5 billion infrastructure budget, additional credits for a single project or production are subject to these caps.

(f) Allocation. The Office shall ensure distribution of credits to support infrastructure and production projects in all states with infrastructure projects taking priority during the first phase.

(g) Exceptions. (i) Infrastructure developers that meet any of the following are not eligible to apply for tax credits under this program to build new U.S. infrastructure, on grounds of national security and to protect the competitive global trade and new U.S. business development purposes of this federal incentive: (A) Are not based in the United States as registered and taxable U.S. businesses, individuals, or groups; or (B) Have pre-existing international film and media infrastructure ownership or investments in foreign infrastructure developments, businesses, or groups; or (C) Predominantly engage in ongoing business or production with international film and media operations at foreign studios and production facilities while utilizing international incentive programs outside the United States at the expense of U.S. production, owned or rented U.S. infrastructure, and U.S. incentive programs. (ii) Infrastructure credits through this program cannot be used to build, service, upgrade, or maintain any international infrastructure developments owned or operated by U.S. businesses, individuals, or groups. (iii) Infrastructure development businesses that also offer financing and management services for film and media facilities (even internationally) are allowed to apply for infrastructure tax credits in coordination with and on behalf of an owner that is an approved U.S. applicant meeting the requirements of this Section 5, provided they submit proof of being a service provider with no direct or indirect ownership of the project or of any international properties they manage or could potentially develop. This prevents circumvention of the protections in this subsection.

SECTION 6. INFRASTRUCTURE TRANSFERABLE TAX CREDITS. (a) Eligibility. U.S.-based Infrastructure developers undertaking qualified infrastructure projects in the United States may apply for transferable tax credits using funds from the $5 billion first-year allocation for projects and productions 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(a) (Approval Criteria) and Section 5(d) (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 $85,000,000 per fiscal year for a single infrastructure project.

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

SECTION 7. NONINFRASTRUCTURE TRANSFERABLE TAX CREDITS (a) Eligibility. Production companies 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 $5 billion first-year allocation 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 $50,000,000 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 $500,000 in U.S.-based post-production services may qualify for credits, with a cap of $8,000,000 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. (2) For the second fiscal year (October 1, 2027) and each year thereafter, funding is provided through the National Film Fund with an authorized introductory injection and only if necessary thereafter on an annual basis to maintain program budget, for $2,500,000,000 base of funding, per Section 18, supporting: (i) Infrastructure projects (construction, expansion, upgrades, maintenance, restoration) as specified in Sections 5 and 6. (ii) Noninfrastructure credits for qualified productions as specified in Section 7. (iii) Additional infrastructure projects (e.g., theaters, film festivals) and film and media innovations and projects not yet known and otherwise as to be determined by the Office of Film and Media Industry.

(b) 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.

(c) 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 due to scheduling, costs, or other factors, 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 immediate 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 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 known or not yet known. (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 for instruction and equipment testing, with hired instructors and volunteer entertainment stakeholders where feasible.

(d) Emergency Use. Up to 75 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 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 and participation in the Universal Federal Film Tax Credit program.

(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(a)(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, the base credit shall be calculated as follows: (1) Infrastructure Projects. 35 percent of qualified capital investments in the first year of the program to accelerate infrastructure and business development in film and media nationwide and 30 percent from thereafter, as defined in Section 9, incurred in the United States.

(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(a)(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.

(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 for film and media infrastructure and noninfrastructure projects.

(c) Eligibility Criteria. For assistance with or without minimum project spending available, Applicants must: (1) Receive approval from the state economic development department and the Office for tax credits under all other provisions within 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 budget or financing plan with repayment schedules or 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. (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 zero 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)), loan assistance outcomes (Section 13(f)), 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 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(a)(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(a), 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, 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 any additional qualified expenditures, including interactive media formats and other related film and media expenditures and categories.

(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) Loan assistance administration, including hardship reviews, per Section 13(g). (iii) Union status declarations and compliance verification, including standardized consent templates, per Section 11(b). (iv) Penalties for violations (e.g., false statements, labor violations), per Sections 11(e) and 12(b)(3). (v) Disruption management criteria and relief processes, including for pandemics or other worldwide emergencies, per Section 15(f). (vi) 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 of the United States, to be administered by the Office of Film and Media Industry, to provide investment and funding for film and media projects, accessible to independent artists, production companies, and major studios alike, without requiring public stock offerings or imposing stock market pressures on creative control.

(b) Funding Sources. The Fund shall consist of the following: (1) Voluntary contributions from individuals and businesses, which shall be eligible for tax deductions as specified in subsection (d). (2) Grants, gifts, donations, or appropriations made available to the Fund. (3) Interest earned on Fund balances. (4) Repayments of principal and interest on loans made from the Fund under Section 13, and returns on equity investments or other financial participation by the Fund in qualified projects. (5) Amounts transferred from fees collected under this Act, including any administrative or success fees on tax credits or loans as established by regulation under Section 16. (6) Proceeds from bonds or other debt instruments issued under subsection (e). (7) Any other amounts authorized by law or transferred from other federal programs with the approval of the Office and relevant agencies.

(c) Use of Funds. Amounts in the Fund shall be available, without fiscal year limitation, for: (1) Grants, loans, loan guarantees, or equity investments to qualified infrastructure projects and productions under this Act, with priority for U.S.-based projects that promote economic growth, job creation, and workforce development. (2) Workforce training activities under Section 10. (3) Facilitation of crowdfunding, allowing individuals or groups to invest in specific eligible projects through the Fund for transparency and direct tax accounting, subject to regulations under Section 16. The Fund shall manage transactions, verify contributions, and provide tax reporting for investors. (4) Co-investment or guarantees for qualified projects with limited collateral or credit profiles, sharing risk with banks or other lenders up to 50 percent of loan value (or such other percentage as established by regulation), to incentivize financing for independent and major productions. (5) Administrative costs of the Fund, not to exceed 5 percent of annual inflows.

(d) Tax Deductions for Contributions. Contributions to the Fund shall be treated as deductible investment expenses or charitable contributions, as applicable, subject to the following annual limits and IRS regulations: (1) Individuals: Up to $25,000,000 per taxpayer per year. (2) Corporations and other business entities: Up to $100,000,000 per entity per year. (3) Deductions are limited to verified contributions and may not exceed the contributor’s adjusted gross income; any excess may be carried forward in accordance with IRS rules. The

Office shall issue regulations under Section 16 to implement matching incentives for private or state contributions.

(e) Board. A National Film Fund Board is created within the Office to provide oversight and guidance for the Fund. The composition of the Board shall be determined by the Secretary of Commerce and shall include representatives from film industry organizations, educational institutions, state economic development departments, labor organizations, and other relevant stakeholders as appropriate.

(f) Board Duties. The Board shall: (1) Establish grant, loan, equity investment, and crowdfunding application procedures and approval criteria, consistent with the goals of this Act. (2) Prioritize projects with measurable economic outcomes, such as U.S. job creation, domestic production activity, and workforce development. (3) Approve distributions and major investments by majority vote, subject to availability of funds and compliance with this Act and regulations under Section 16.

(g) Bond Authority. The Secretary of the Treasury, in consultation with the Office and the Board, is authorized to issue bonds or other debt instruments on behalf of the Fund. Such bonds may be general obligations or revenue bonds backed by expected inflows to the Fund. Proceeds shall be deposited into the Fund. The total principal amount of bonds outstanding at any time shall not exceed amounts necessary to carry out the purposes of this Act, as determined by the Office.

(h) Revolving Fund and Non-Reversion. The Fund shall operate as a revolving fund. Amounts repaid or returned to the Fund shall be available for reobligation without further appropriation. Funds do not revert to the Treasury General Fund at the end of any fiscal year.

(i) Reporting. Fund activities, including contributions, distributions, economic impacts, leverage ratios (private capital attracted per federal dollar), and recommendations for appropriations, shall be reported annually to Congress as part of the report required under Section 14(a)(6).

(j) Purpose. This section provides a stable, self-sustaining funding source for film and media projects after the initial authorization period, enabling accessible financing, crowdfunding investments, and support for artists and studios while avoiding stock market pressures and preserving creative control.

Version Note. Draft as of May 24, 2026.