Paramount Skydance CEO David Ellison has emerged as a quiet but influential backer of bipartisan legislation creating a federal film tax incentive. Over the past six months, Ellison has conducted exploratory meetings with lawmakers from both parties to shape the proposed bill, according to sources familiar with the effort. The CEO's involvement signals Hollywood's continued push for federal tax breaks to compete with state-level incentives that have fragmented film and television production across the country.
The move reflects a broader industry trend. Studios and production companies have long lobbied for federal tax credits similar to those offered by individual states like Georgia, Louisiana, and New Mexico, which have successfully attracted major productions through generous rebates. A coordinated federal program could level the playing field and potentially reduce production costs for major studios like Paramount, while also addressing concerns about runaway production leaving California.
Ellison's bipartisan approach underscores the nonpartisan appeal of film industry incentives. Both Republican and Democratic lawmakers have supported tax credits as economic development tools, citing job creation and local spending. The Paramount chief's background as a tech entrepreneur and the son of Oracle founder Larry Ellison gives him credibility with conservative legislators, while his leadership of a major studio provides leverage with Hollywood-friendly Democrats.
The proposal arrives as the industry navigates post-pandemic recovery and increased competition from streaming platforms for production spending. Federal incentives could help studios offset rising labor costs and the expense of competing with international productions in Canada, the UK, and other countries offering aggressive tax breaks.
Details on the bill's specific structure remain unclear, but such proposals typically offer tax credits ranging from 15 to 25 percent of production spending within the United States. Ellison's involvement suggests Paramount views federal incentives as a priority, joining other studios in advocating for legislative action that could reshape how Hollywood budgets and allocates productions across regions.