Your Future Film Coalition News Digest #6
This week, we cover: the latest updates regarding federal and state tax incentives, AI and copyright laws, and more news.
The Latest in Indie Film as of May 22
Competition Heats Up for Tax Incentives: On Tuesday, May 20, Mayor Karen Bass issued an executive directive to address the declining rate of film production in Los Angeles. The directive is designed to simplify regulatory procedures, streamline processes and approvals for permitting, and reduce fees associated with filming on city property. Over the next 30 days, city departments are instructed to include “a review and recommendation for potential discounts on film-related fees for low-budget productions, companies filming for the first time in the City, and student filmmakers (including permits, on-site staff, inspections, and any existing location-related fees).” In a statement to Deadline, Producers United member Jamie Patricof said, “We want to film here – but we leave because we have to. We have the best grips, gaffers, production designers, drivers, caterers, actors, writers, and directors in the world—yet too often, we have to board planes to do our jobs.”
In a letter from Sunday, May 11, industry trade organizations and labor unions wrote to President Trump advocating for the inclusion of three film and television industry priorities in the congressional reconciliation package: 1) implement a federal production incentive, 2) extend and expand deductible production expenses, and 3) reinstate the ability to carry back losses, so businesses can use their profitable years to offset losses in later years. The letter is signed by “Hollywood Ambassadors” Jon Voight and Sylvester Stallone, trade organizations for both the major studios (Motion Picture Association) and indies (the Independent Film & Television Alliance), newer groups like Producers United and Film USA, plus labor organizers including the DGA, WGA, IATSE, and more. Recognizing that tax incentives will benefit independent financiers and the health of the independent film field, FFC applauds and supports this field-wide effort. The Future Film Coalition remains in dialogue with these groups, and others working at state levels, to specifically promote lower budget films and the indie sector as a whole in policy discussions relating to incentives. As international markets pass ambitious tax programs, this national coordination among a broad coalition is needed to campaign for more competitive state and federal incentives in order to attract and retain domestic film production. To learn more about the latest in tax incentives, read on below.
More on the Top Story
Competition Heats Up for Tax Incentives
“New York Boosts Film Subsidy to $800 Million in Tussle With New Jersey,” Gene Maddaus, Variety, May 9, 2025.
On Friday, May 9, Governor Kathy Hochul signed a bill to create a new $100M tax incentive program for independent films in New York state. Of the $100M set aside for indies, $20M will be dedicated to productions with budgets under $10M while the remaining $80M will be for projects with budgets over $10M. The cap for the New York film and television subsidy increased to $800M total, nearly double what it was three years ago. Production in New York has been waning after New Jersey expanded its state incentive program in 2018, more on that next.
“How New Jersey Landed Netflix,” Tony Maglio, The Hollywood Reporter, May 13, 2025.
Netflix broke ground on a new east coast studio in central New Jersey this month that will include a dozen soundstages, postproduction facilities, general office space, and more. New Jersey’s generous tax incentive program is credited for attracting Netflix’s business and helping to make the state the sixth-largest state for film and television production. As Maglio reports, tax credits were a common refrain throughout the groundbreaking ceremony. Speaker of the New Jersey General Assembly Craig Coughlin said, “Boy, what a difference film credits can make.” State Senator Declan O’Scanlon, initially skeptical of the tax incentive program, admitted, “I was wrong.” Unlike the New York bill, the New Jersey program does not have a carve out for independent or low budget filmmaking, highlighting the need for further organizing and advocacy on behalf of the indie sector.
“How London Became the New Hollywood,” Lily Ford, The Hollywood Reporter, May 8, 2025
As film production in the U.S. dropped by 40% in 2024, the U.K. saw a 31% increase in production revenue last year. This is largely credited to the incentive program in the U.K. that offers a 40% tax credit that increases to 53% for independent films with budgets of less than £15 million ($20 million). The increase in production has contributed to a robust infrastructure for film and television, ranging from soundstages to postproduction VFX studios, similar to the impact incentives had in New Jersey, mentioned above.
What We Are Following
Funding for Public Media
“Public Media is Under Threat. Here’s the Latest.” Cait Beroza, Protect My Public Media, May 21, 2025.
According to Protect My Public Media, hundreds of thousands of constituents have urged congress to reject the Trump administration’s effort to rescind previously approved public media funding. In a letter sent to subscribers on Wednesday, May 21, Protect My Public Media shared, “Because of this pressure and other developments in Washington, the White House’s proposed rescissions package – which would claw back more than $1 billion in federal funding – appears to be delayed in the immediate term. This is one of the fights we can influence, and your actions helped hold the line. While this is welcome news, the fight is far from over. Multiple threats remain, and Congress will soon turn its full attention to its Fiscal Year 2026 appropriations bills. We expect public media to face many challenges to funding during that process. Between now and then, there will be many moments to protect public media again – and we’ll need your support once more.”
AI and Copyright Law
“Copyrighting AI-Assisted Film and TV Could Get Complicated,” Audrey Schomer, Variety, May 5, 2025.
As AI firms launch studios to produce film and television they are consulting copyright experts to evaluate how to protect their ownership of AI outputs. Under current guidelines from the U.S. Copyright Office, Schomer writes, “Producers who use generative AI in production will need to prove to the copyright office that sufficient human authorship went into the work. This means rigorously documenting their use of AI tools, clearly indicating human creative contributions versus those by AI, which will need to be disclaimed in a copyright application.” This process will be rife with ambiguities that will be reviewed on a case-by-case basis where the human contributions to a production are copyrightable but the AI contributions are excluded. For major studios and independent filmmakers alike, this will require diligent application of AI tools during production and postproduction to ensure adequate copyright protection.
“Trump May Hurt Hollywood With Remake of Copyright Office,” Steven Zeitchik and Ethan Millman, The Hollywood Reporter, May 14, 2025.
As cases regarding AI firms training their models with copyrighted materials under “fair use” laws move through the court system, President Trump fired Shira Perlmutter, head of the U.S. Copyright Office, driving more uncertainty about the administration’s stance on the subject. Perlmutter’s firing came the day after the U.S. Copyright Office published a report on Copyright and Artificial Intelligence that found “making commercial use” of copyrighted material “goes beyond established fair use boundaries.” Adding to the uncertainty, Trump plans to install Paul Perkins and Brian Nieves to oversee the Copyright Office, both of whom may not be allies to Big Tech companies based on their track records. We will continue to monitor changes to current guidelines and policies and what they mean for independent filmmakers in future digests.
Concerning Trends in Self-Censorship
“‘C’ is for Censorship: PBS Cuts ‘Art Spiegelman’ Doc and Other Dubious Acts at Embattled Broadcaster,” Anthony Kaufman, Documentary Magazine, May 19, 2025.
Programming executives at PBS imposed cutting a 90 second sequence from Art Spiegelman: Disaster Is My Muse that contextualized the film’s anti-fascist themes in the Trump era. The filmmakers were given less than two weeks notice before the film’s broadcast date to either buy back their licensing deal from PBS, or agree to the broadcaster’s decision to censor the story. While the filmmakers ultimately agreed to PBS’s demands, Producer Alicia Sams said, “The irony of censoring someone who is a free speech advocate is maybe lost on PBS, but certainly not lost on us.” As PBS fights to sustain its federal funding, independent documentary filmmakers are growing increasingly concerned about the cost those funds will have on speech and freedom of expression.
“PBS Pulled a Film for Political Reasons, Then Changed Its Mind,” Daniel Engber, The Atlantic, April 18, 2025.
At the end of February, ahead of the “Anti-American Airwaves” congressional hearings led by Marjorie Taylor Greene, PBS canceled an April 7 broadcast of Break the Game, a documentary about a trans video gamer. It was not until after the congressional hearings and press inquiries into why the April 7 airdate had been canceled that PBS confirmed with filmmaker Jane M. Wagner that Break the Game was now rescheduled for broadcast on June 30 to “commemorate Pride Month.” PBS has not commented on why the film’s original airdate was canceled, leaving journalists and filmmakers like Wagner to connect the dots on their own. As Engber writes, “Self-censorship may be easy to undo, but it’s also easy to avoid in the first place.”
“Disney Cuts Trans Storyline From Pixar’s ‘Win or Lose’ Series: ‘Many Parents Would Prefer to Discuss Certain Subjects on Their Own Terms’,” Selome Hailu, Variety, December 17, 2024.
Break the Game is not the first story with a trans character to experience self-censorship in recent months. Win or Lose, a new Pixar series about a co-ed middle school softball team, was going to feature a transgender storyline before it was cut by parent company Disney. At a time when anti-trans bills are being introduced and passed in record numbers across the country, a chilling effect is permeating LGBTQ+ stories, particularly those featuring transgender individuals, across both major studios and public media.
ICYMI
Survey: Impact of Recent Executive Orders and Federal Policy Changes, Americans for the Arts.
Americans for the Arts launched a new national survey to assess the impact of President Trump’s recent executive orders and changes to federal policy. All nonprofit arts and culture organizations and creative businesses are encouraged to participate. It takes an average of 6 minutes to submit the survey.
“Roeg Sutherland Talks Ever-Lengthening Cannes Market & Packaging Process; Theatrical Revival & Talents Taking Control Of IP,” Melanie Goodfellow, Deadline, May 18, 2025.
Roeg Sutherland, CAA’s Media Finance Co-Head, gave the keynote address at Cannes Marché du Film’s Investor Circle event where he spoke at length about the changing landscape for festival markets, the decline in soft money from the U.S., and the increasing complexity of packages. Highlighting the essential role the Cannes Film Market plays in the industry, Sutherland discussed how Cannes has grown longer unlike other festivals. “People complain that it's slower and I’m like it’s only slower because it’s much more methodical,” Sutherland said, “Now you have to do international sales. You’re probably not going to get a domestic pre-buy. That market’s much, much harder than it was before. They want to see footage. They want to see what the movie is going to look like. So, you have to find an equity investor.”
“I’m One of the Filmmakers DOGE Targeted at the NEH. Here’s Why We’re in Trouble,” Marisa Fox, The Hollywood Reporter, May 8, 2025.
Documentary filmmaker Marisa Fox describes the impact of having a grant from the National Endowment for the Humanities (NEH) terminated. The grant was awarded to support the documentary Fox has been working on for over 10 years, My Underground Mother, which follows her late mother’s story as a survivor of a Jewish women’s forced labor camp during the Holocaust. Between $10M–$20M in “media funding” was cut as part of the NEH grant terminations. Despite the fact that the NEH’s overall budget is 0.003% of the total federal budget, the letter informing her of the cancellation stated, “Your grant’s immediate termination is necessary to safeguard the interests of the federal government, including its fiscal priorities.” As Fox writes, “Apparently my independent film wasn’t only deemed a waste of taxpayers’ money by this administration — its very funding was imperiling the ‘urgent’ fiscal needs of our nation.”
