Paramount CEO David Ellison backs bipartisan film tax bill
Paramount Skydance CEO David Ellison is quietly supporting a bipartisan bill to launch a federal film tax incentive, Variety reports. Multiple sources say he has spent at least six months in exploratory meetings on the legislation and met with top Republican leadership in Washington, D.C., on Monday as lawmakers from both parties weigh the proposal. The push comes as studios face growing pressure to keep production in the United States rather than chase overseas rebates.
Key Takeaways
- Paramount CEO David Ellison has been backing bipartisan talks on a federal film tax incentive for at least six months, per Variety sources.
- Ellison was in Washington, D.C., on Monday with general counsel Makan Delrahim to discuss the proposal with top Republican leadership.
- A federal program could stack with state credits and offer relief to producers leaving the U.S. for international rebates.
- Hollywood unions including the DGA, IATSE, and SAG-AFTRA are also lobbying for a federal incentive.
- Politico's Daniel Miller first reported Ellison's interest in the federal film incentive.
Why is David Ellison pushing for a federal film tax incentive?
Multiple sources told Variety that Ellison has spent at least six months in exploratory meetings for the proposed legislation. On Monday evening, he was present in Washington, D.C., to break bread with top Republican leadership, where the matter was set to be discussed.
Ellison was joined by his general counsel, Makan Delrahim, according to the report. Names of politicians from both parties involved in the bill were not immediately available.
More than one source noted the timing: Ellison's Monday night meeting came the same day that a group of state attorneys general filed suit to block his acquisition of Warner Bros. The Department of Justice approved that deal in March, essentially clearing the way for Ellison to complete his plans for a combined Paramount-Warner Bros.
How would a federal film tax credit help Hollywood?
A federal film tax incentive would provide significant financial relief to content producers fleeing the U.S. for rebates around the world, Variety reported. A federal program would also sweeten the deal in Hollywood's home state of California, which maintains its own TV and film tax credit.
California Attorney General Rob Bonta is leading an antitrust lawsuit against Ellison over Warner Bros., adding a layer of political tension to the broader production debate. For an industry already grappling with production slowdowns, a nationwide incentive could reshape where major studios choose to shoot.
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Who else supports a federal production incentive?
Hollywood's labor unions have taken up the mantle on a federal incentive. The DGA, IATSE, and SAG-AFTRA are among those pushing for action at the national level.
In its just-negotiated contract, the DGA stipulated that top studio executives must participate in lobbying for more favorable domestic filming incentives. That requirement puts Ellison and other studio chiefs on the hook to advocate directly for policies that keep crews working on American soil.
What does this mean for the Paramount-Warner Bros. merger?
Hollywood unions and stars have not been keen on Ellison's Warner Bros. transaction. Some fear an already struggling Hollywood could be further pushed underwater by mega-merging two media behemoths, a tactic critics call historically ineffective.
Ellison's Washington visit underscores how policy and deal-making are moving in parallel. A federal tax incentive could benefit a larger combined Paramount-Warner Bros. footprint, even as legal and labor opposition to the merger continues to build.