Does it count as a foreign film to be taxed if the film is entirely AI (not out of the question for the near future) and done by someone sitting on a computer in LA, but the server doing the processing is overseas?
No one has the slightest idea. And that’s a big part of the problem. People need to make decisions NOW for anything they hope to shoot in 2026 — and a lot of the decisions on 2026 filming have already been made, with actors lined up who have turned down other opportunities to block six months of their time for Project X. This kind of announcement is a classic piece of “fire, ready, aim,” in that order.
This, btw, is one of the key differences between the arbitrary diktats of the administrative state vs. the orderly process of legislation (if Congress can somehow recover its backbone and actually do its job). The legislative process — like an orderly rulemaking process — at least gives people reasonable warning and an opportunity to hash out the details. Getting the industry blown up overnight by unexpected tweet is not a good way to do business.
People shouldn’t be blindsided. This is a fundamental conservative principle.