Netflix, Universal Chiefs Descend On D.C. to Capitalize on Trump Tax Credit Momentum

It was an imposing line, snaking around a long block, with those in suits and ties baking in the already intense morning sun. It took some time for the small group of Hollywood production advocates — including the owners of prop houses and a postproduction accounting firm — to finally reach the head of the queue. At security, belts were removed, cell phones dispensed in little gray plastic bowls, bags dropped off to be screened, but soon enough the group found themselves in front of elevators with gold doors, each engraved with the unmistakable profile of George Washington.

“Welcome to Congress, everybody,” said Brian Papworth, the executive director of the Coalition for American Production (CAP).

Papworth’s group of vendors and small-business owners was pounding the pavement in D.C. to get legislators excited about the idea of a federal film and television tax credit. CAP members had flown in from all over the country to meet Republicans and Democrats alike and proselytize the economic boom and national security and soft power perks they argued could result. The pack of folks heading into the Longworth House Office Building on Wednesday, a massive 20^th-century complex housing representatives’ offices, was just one of five teams affiliated with CAP that was spreading out across Capitol Hill that day, making the same pitch.

And they weren’t alone. The Hollywood Reporter has learned that Netflix CEO Ted Sarandos was in town. So was NBCUniversal Entertainment chairman Donna Langley and SAG-AFTRA president Sean Astin. “Special ambassador” to Hollywood Jon Voight had previously flown in for a bit. CreativeFuture, the nonprofit advocating for creative copyright protections, was doing their own work, as were representatives from the TV Academy. Hollywood, essentially, had descended on D.C. at a pivotal moment.

“There’s an opportunity and there’s still a roadmap to be able to get this done this year,” explained Papworth on Wednesday as he waited in the long line to enter Longworth. (Many other groups were looking to squeeze their advocacy in before members of Congress went home for elections.) “If we don’t get this done this year, we know we’ve created an incredible momentum, but the fear and anxiety throughout the ecosystem is what does Congress look like next year?”

The effort to pass a federal tax incentive, percolating for more than a year, was reenergized by President Donald Trump’s statement of support on Truth Social in late August. “What we watch on the Silver Screen should be made in what was once the Movie and Motion Picture Capital of the World. Let’s get this done!” he posted.

Hollywood and its allies scrambled to quickly win over legislator hearts and minds in response. On Tuesday the studio trade group the Motion Picture Association — whose D.C. offices are steps from the White House — released the results of a report claiming that a federal tax credit could yield $250 billion in total gross value and support 143,500 full-time equivalent jobs annually.

The next day, a group of bipartisan lawmakers who support the tax incentive idea, including the Republican representatives Brian Jack, Nathaniel Moran and Nicole Malliotakis as well as Democrats Laura Friedman, Linda Sánchez and Tom Suozzi, announced the creation of a film and television production caucus in Congress to support domestic production initiatives. (Sánchez is said to be co-sponsoring the tax credit legislation with Moran.)

That same day, the CAP members were encouraged by their leaders, not to mention their lobbyists at Venable LLP, to share their personal stories with representatives. The goal was to convince them that the livelihoods of regular people, not just highly paid stars and creatives, were at stake.

One of these members was Rachel Cannon, the founder and CEO of the Rock Paper Cannon studio in Oklahoma. “I know that if we don’t have production incentives that help all the studios to survive in California, that the studio that I put together can’t survive in Oklahoma,” Cannon — the former founder of Oklahoma’s Prairie Surf Studios, which previously hosted Tulsa King and Twisters — said. Noting that the industry was a on a “downward spiral,” she added, “We’re all connected and we all have to make sure that the industry can survive.”

Another was Rory Wells, a New Jersey-based entertainment attorney who works with writers. “My goal here today is [to communicate] this is not a tax break for Hollywood, this is a jobs bill,” Wells said as CAP milled around in front of the Capitol steps before walking off to their meetings. “You’re helping people that lease the lighting, the generators and make the sandwiches. If I can get that through, it can resonate with both sides of the aisle.”

Individual lawmakers from both sides of the aisle have been enthused, but it remains unclear how universal that sentiment is. Legislators from major production states — Georgia, New York, California, Texas — have hopped on board, but the efforts of CAP and others were aimed at bringing more people into the tent, including those from states with less filming going on.

Was it working? THR wasn’t permitted in the room with Congressional staffers on these visits but Papworth’s breakout group, consisting of members from Southern California, at least, came out optimistic. The first get-together, with a staffer of Rep. Kevin Mullin (D-CA), was short and successful, they said; the second, with a staffer for Rep. Jared Huffman (D-CA), was slightly more complicated. Faced with some early skepticism, Papworth said he reminded the staffer that the group had previously been told no one would go for a federal tax credit. “And we’re here,” he said. “We’re going to remain hopeful and push for it.” Later in the day, they had meet-ups with staffers from the offices of Rep. John Cornyn (R-TX), Rep. Adrian Smith (R-NE), Rep. Jimmy Gomez (D-CA) and Rep. Linda Sánchez (D-CA).

During some downtime in the grand rotunda of the Cannon House Office Building, a vaulting, circular room lined with Corinthian columns, Matthew Parham, a voiceover artist and director of operations for the National Association of Voice Actors (NAVA) weighed in. He said all parties they’d met with at that point seemed interested, but they were weighing multiple priorities “I think there’s many fires to put out and there’s a lot of promises that are being made that are trying to be kept,” he said. “We are pushing for it to be done this year because the sooner the ink is dry on the bill the sooner these jobs come back to American soil.”

The next day, after the day lobbying was complete, California Post Alliance president Marielle Abaunza added that the Southern California-focused group had only encountered one initial skeptic. “By the end of the meeting [with the skeptic], they understood that this is ultimately a jobs bill that will benefit the entire country,” she added.

Still, it won’t be an easy road ahead. It hasn’t yet been announced how much a federal tax credit will cost, which may impact legislators’ opinions on the idea. Various stakeholders will undoubtedly want to sink their teeth into the legislative language and push their own priorities when it’s announced. As lawmakers leave D.C. at the end of the week, there’s always the chance of them getting distracted by the midterm elections, winnowing the idea’s momentum.

But after Wednesday, the mood in D.C. was sunny and hopeful. Jake Newel was assigned a different group, one devoted to the New York, New Jersey and Northeast region. He’s the fourth-generation owner of Newel, Newel Rentals and Newel Auctions, an antiques and fine art business that provides props for films and TV shows in the New York area. He wrote in an email on Thursday, “We met with Democrats and Republicans, and there was a lot of common ground around one basic idea: these jobs should not be leaving the United States.”