Film Tax Push
Paramount CEO Ellison pushes federal film tax incentive to boost U.S. production.
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Key Points
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A bipartisan dinner in Washington, D.C., hosted by House Ways & Means Committee chair Rep. Jason Smith, brought together 13 Democratic and Republican representatives to discuss a federal film tax incentive, with Paramount CEO David Ellison and chief legal officer Makan Delrahim in attendance; the gathering was planned well before the antitrust suit against Paramount-Warner Bros. Discovery was filed.
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Senator Adam Schiff has been advancing legislation on a federal film tax incentive, arguing that state programs cannot substitute for a globally competitive federal incentive needed to bring production back to American soil and halt production offshoring.
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Lawmakers face a tight calendar, with only a couple of weeks before summer recess and an end-of-fiscal-year deadline on Sept. 30, raising questions about the timing and chances of passage for any incentive bill this year.
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Larry Ellison has quietly backed the idea of a federal film tax incentive for at least six months, engaging in exploratory meetings and recently meeting with top Republican leadership in Washington, signaling a long-running push beyond a single lobbying session.
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The same day Ellison’s D.C. visit occurred, a coalition of state attorneys general filed a lawsuit to block Paramount’s merger with Warner Bros. Discovery, underscoring concurrent antitrust and incentive debates shaping the industry’s policy environment.
Paramount CEO David Ellison traveled to Washington, D.C., to push for a federal film tax incentive, attending a bipartisan dinner hosted by House Ways and Means Committee chair Rep. Jason Smith, according to The Hollywood Reporter. The dinner brought together 13 Democratic and Republican lawmakers to discuss a federal program that supporters say could stop the flight of film production overseas.
The visit came on the same day 12 state attorneys general filed a lawsuit to block Paramount's proposed merger with Warner Bros. Discovery, according to The Wrap. The twin developments put Ellison at the center of two of Hollywood's biggest policy fights at once.
Bipartisan Dinner Puts Incentive Push on the Map
Ellison attended the D.C. dinner alongside Paramount's chief legal officer, Makan Delrahim, The Hollywood Reporter reported. The gathering was planned well before the antitrust lawsuit dropped. Thirteen House members from both parties sat down to talk about how a federal tax incentive could help bring production jobs back to the U.S.
Ellison's father, Larry Ellison, has quietly backed the idea for at least six months, The Hollywood Reporter reported. Larry Ellison has met with top Republican leadership in Washington as part of that effort. The family's long-running push signals this is more than a one-off lobbying trip.
Why Hollywood Wants Federal Action, Not Just State Programs
Senator Adam Schiff has been pushing his own legislation on a federal film tax incentive. His argument is direct: state programs cannot compete with the subsidies offered by Canada, the U.K., and Australia. A federal incentive, he says, is the only tool big enough to keep productions on American soil.
Industry groups, Hollywood guilds, and studio executives have all lined up behind the idea. They argue the U.S. loses billions in wages and spending every year to foreign rebate programs. A federal credit would level the playing field and keep crew members working at home, supporters say, according to The Wrap.
Antitrust Lawsuit Clouds Ellison's Washington Moment
Hours before the dinner, a coalition of 12 state attorneys general filed suit to block the Paramount-Warner Bros. Discovery merger, according to The Wrap. The lawsuit argues the combined company would hold too much market power. Auditors say the deal could reshape the streaming and studio landscape significantly.
The timing was coincidental — the dinner had been scheduled long in advance, The Hollywood Reporter noted. But the overlap put Ellison in an awkward spot. He was pressing Congress to help Hollywood on one front while facing a legal battle over his company's future on another.
Tight Congressional Calendar Puts Bill's Chances in Doubt
Lawmakers have only a few weeks before summer recess begins. After that, a fiscal-year deadline hits on September 30. That leaves a very narrow window for any incentive bill to move through committee, pass both chambers, and land on the president's desk this year, according to The Hollywood Reporter.
Competing proposals from both parties and a packed legislative schedule add more obstacles. Supporters of the incentive are pushing hard now, knowing that delays could push the effort into next year. Whether Ellison's dinner diplomacy moves the needle remains to be seen, The Wrap reported.
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