A historic legislative effort is underway on Capitol Hill for a federal production tax incentive, but as currently drafted, it leaves behind a crucial engine of the American film economy: commercial advertising production.
The AICP has issued an urgent call to action for independent production houses, post-production facilities, vendors, crew members, and other stakeholders to contact their Congressional representatives. The goal? Amend the newly introduced federal film tax credit legislation to include commercial productions before it moves further through Congress.
What Is H.R. 10582 and S. 5552?
Introduced in late September 2026, H.R. 10582 and the accompanying S. 5552—the Motion Picture, Television, and Entertainment Revitalization Act (MPTERA)—is a landmark bipartisan bill designed to curb foreign runaway production and protect American creative jobs.
If passed, MPTERA would establish a 20% base federal tax credit on qualifying U.S. production labor expenses, with transferable credit options and potential stackable uplifts reaching up to 30% for independent productions, multi-state shoots, or investments in rural and disaster-declared areas. Qualifying projects currently require a minimum spend of $1 million and at least 75% of shoot days within the U.S.
The Problem: Commercials Are Explicitly Excluded
Despite being one of the largest employers in physical production across hubs like Los Angeles, New York, Chicago, Atlanta, and Dallas, commercial advertising projects are explicitly barred from qualifying under the current bill draft.
By excluding "an advertising, marketing, promotional, or brand-marketing campaign," H.R. 10582 and S. 5552 ignore the very sector that maintains steady, year-round employment for local crews, equipment rental houses, and post-production companies between long-form film and television cycles.
Commercial production is the backbone of local production infrastructure in markets across the country. Excluding commercials from federal incentives places independent production companies at a structural disadvantage while competing against foreign markets for brand budgets.
Why Independent Production Companies Must Act Now
For independent production companies operating on tight margins, federal parity could offer meaningful economic benefits:
Budget & Competitiveness: Brands frequently consider international shoots in countries offering production incentives or other cost savings. A federal tax credit for U.S. commercial shoots would keep commercial ad budgets within domestic borders.
Job Preservation & Crew Retention: Commercial shoots provide consistent, high-paying work for local union and non-union crews, staging facilities, and post-production houses.
Grassroots Power: Because H.R. 10582 and S. 5552 are currently sitting before the House Committee on Ways and Means and Senate Committee on Finance, grassroots outreach from commercial producers and other stakeholders can directly influence legislative amendments before the bill is finalized.
How You Can Take Action Today
The AICP has made it simple for production companies, crew members, and industry partners to submit a grassroots message to Capitol Hill:
Send a Direct Pre-Drafted Letter: Use the AICP Action Portal to submit a letter to your U.S. Senators and Representatives. Under the "Your Letter Topic" dropdown, select Taxation.
Personalize Your Message: Include details about your company’s size, local economic footprint, annual crew hiring numbers, or how a federal tax credit for commercials would directly impact your ability to compete for national and global ad campaigns.
Contact Your Federal Lawmakers Directly: Look up your local U.S. Representative via the House Representative Directory and your U.S. Senators via the Senate Contact Directory to submit comments directly to their economic development staffers.
Spread the Word: Forward this alert to your crew networks, rental houses, edit bays, and industry contacts to ensure our collective voice is heard.
For additional information or questions regarding industry advocacy efforts, contact David Michael González, AICP Vice President of Labor Relations & External Affairs, at davidg@aicp.com.