David Ellison Advocates for Federal Film Tax Incentives
David Ellison, the CEO of Paramount Skydance, is reportedly championing a federal film tax incentive bill that has drawn bipartisan interest. Sources have indicated that Ellison dedicated at least six months to discussions aimed at bringing this bill to light. Recently, he engaged with Republican leaders in Washington, D.C., to further discuss its potential.
The proposed federal incentives aim to offer considerable financial support to content creators who have relocated outside the U.S. seeking better tax breaks. This initiative could also facilitate Hollywood contracts in California, where state Attorney General Rob Bonta is actively involved following a contentious antitrust lawsuit related to Warner Bros.
Hollywood unions, such as the DGA, IATSE, and SAG-AFTRA, are also set to benefit from these federal incentives. In a recent agreement, the DGA insisted that top studio executives advocate for improved filming incentives on a national scale.
While California currently boasts a film tax credit worth $750 million for TV and movie productions, no corresponding program exists at the federal level.
The timing of the bill is critical, as Paramount is rumored to be contemplating a move out of California amid backlash concerning its merger with Warner Bros. Discovery. Reports suggest that some of Ellison’s friends and advisers are urging AG Bonta to consider relocating his operations if he obstructs the merger. Notably, Paramount recently leased 300,000 square feet of studio space in Bayonne, New Jersey. Yet, sources close to Ellison describe him as “cautious” about abandoning California.
Paramount has appealed to Bonta for a resolution that would permit the merger completion, proposing a commitment to produce 30 films annually with scheduled theatrical and streaming releases. They also committed to maintaining both Paramount and Warner Bros. operations in California. However, Ellison and other executives have expressed frustration over Bonta’s inaction, citing assurances regarding content investment and job retention in the state. The recent years have already seen significant job losses in entertainment, as many productions have shifted to other states and even Canada. Ellison believes a merger would reverse some of this trend and create jobs in California.
One adviser mentioned that AG Bonta has fostered a climate that feels “inhospitable” for Paramount. Last month, Bonta voiced concerns about potential job losses and escalating costs, describing the situation as having “red flags everywhere.”
In response, Paramount stated: “We continue to engage constructively with the few remaining regulators around the world who are still considering the merger, including state attorneys general, and we are prepared to address any legitimate antitrust issues.” They expressed confidence that the merger does not raise any such concerns, noting that it has been thoroughly reviewed by numerous antitrust authorities globally.
