Paramount CEO Wines and Dines Lawmakers in Push for Federal Movie Tax Break: Report

CEO of Paramount-Skydance David Ellison flew to Washington for a dinner with lawmakers Monday as the billionaire pursues legislation to create a federal tax break for filmmakers. Representative Jason Smith, the Republican chair of the Ways & Means Committee, hosted the dinner, Variety reported, which was attended by a dozen other members of the committee. Ways & Means oversees fiscal legislation in the U.S. House of Representatives. California, where Paramount-Skydance is currently headquartered, is one of a handful of states that offer incentives for filming. The Golden State awards refunds up to 35 percent for shooting out west, with a $750 million cap on the tax breaks.The program has saved production companies $3.6 billion in state taxes since 2004 and elicited more than $27 billion in local film expenditures, according to the Directors Guild of America.But Mr. Ellison is rumored to be looking into relocating his production company amid legal pushback against Paramount-Skydance’s proposed $110 billion mega-merger with Warner Brothers from California Attorney General Rob Bonta. In an op-ed published Monday, Mr. Bonta called the deal, which would centralize control over a third of all U.S. basic cable channels and box office releases, “a death knell for the film and TV industry — and for our democracy.”Mr. Bonta announced his suit, backed by 11 other state attorneys general, at a press conference the same day. The complaint assails the merger, which the The Department of Justice approved last month, as a violation of the Clayton Act anti-monopoly law. “David Ellison may think this is an offer we can’t refuse,” Mr. Bonta said, referencing Marlon Brando’s famous line in The Godfather as he stood in front of the Hollywood sign. “But I’m here to tell him he’s wrong.”Mr. Ellison was reportedly flying to D.C. for the dinner hosted by Mr. Smith at the time. Among the Democrat-led states supporting Mr. Bonta’s lawsuit is New Jersey, where Paramount expanded its operations last year. The company signed a 10-year lease on 285,000 square feet of studio space in Bayonne last fall. The Garden State has its own incentive program, offering tax credits for up to 40 percent of production expenses. New Jersey, the birthplace of both celluloid and the film camera, was the only state to report an increase in filming activity and production spend in the first quarter of 2026, according to production intelligence firm ProdPro. Texas, where Mr. Ellison’s father, Larry Ellison, relocated his tech juggernaut Oracle Corporation in 2020, offers qualifying film projects cash grants as well as exemptions on hotel occupancy and state sales taxes.Paramount said the California lawsuit “distorts settled antitrust law and is based on a misrepresentation of competition in the entertainment industry today” in a statement.“The practical effect of this lawsuit is to shield those dominant streaming platforms like Netflix and technology companies from much needed competition while preventing the significant benefits this transaction will deliver for consumers, creators, workers, and the broader Hollywood economy,” a Paramount spokesperson said. “We will continue to fight against any attempt to derail a deal that strengthens competition, expands opportunity, and positions the combined company to compete in an increasingly competitive global media landscape.” Representatives for Mr. Smith and The Ways & Means Committee did not respond to requests for comment from The New York Sun by press time.

Paramount CEO Wines and Dines Lawmakers in Push for Federal Movie Tax Break: Report

Paramount CEO Wines and Dines Lawmakers in Push for Federal Movie Tax Break: Report

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