Paramount CEO David Ellison lobbied House Ways and Means Committee members Monday for a federal film tax incentive, pushing lawmakers to establish stronger production credits at the national level. Ellison brought Chief Legal Officer Makan Delrahim to the meeting, signaling the studio's serious push on the policy front.
The timing proves strategic. Ellison's Capitol Hill visit arrives hours after New York's attorney general challenged Paramount's merger with Skydance, throwing legal uncertainty around the $8 billion deal that would reshape the studio's ownership structure. By advocating for federal tax incentives, Ellison positions Paramount as an industry player invested in Hollywood's broader infrastructure, not just its own bottom line.
Federal film tax incentives have gained momentum as studios compete for production dollars against state-level programs. Georgia, Louisiana, and other states have offered aggressive rebates that lure productions away from traditional hubs. A federal program would level that playing field while potentially bringing more work to Paramount's facilities and back-lot operations nationwide.
The Ways and Means Committee holds jurisdiction over tax policy, making it the right venue for Ellison's pitch. House members have shown receptiveness to creative industry concerns, particularly when framed around job creation and economic development. Paramount's proposal likely emphasizes production spending, crew employment, and ancillary benefits like equipment rental and post-production work.
The merger challenge from New York's AG complicates Paramount's near-term outlook. That lawsuit targets the deal's approval, claiming inadequate review of competitive impacts. Ellison's Washington push suggests the studio plans to weather legal battles while maintaining influence over industry policy. If the Skydance merger closes as planned, the combined entity would control significant infrastructure and talent pipelines that a federal incentive program could benefit.
Studios view federal tax credits as essential infrastructure for competing globally. Productions increasingly shop projects across multiple jurisd