David Ellison’s trip to D.C. on July 13 to court Republican members of a key House committee shone a spotlight once again on the federal film tax incentive, a potentially game-changing legislative effort to claw back some of the film and TV production work that the U.S. has lost to overseas locales.
The executive has been working on the issue for some time, even as details of his involvement only made headlines the same day that states filed their attempt to block his $111 billion merger of Paramount and Warner Bros. Discovery. Paramount Skydance has spent $2.86 million on lobbying so far this year, per disclosures filed with the House of Representatives. That lobbying included “issues related to federal film/TV production incentives,” among many other areas of interest, and included meetings with staff in the Senate, the House, the FCC, Treasury Department and other officials.
If Ellison is able to seal the studio megadeal despite at least four lawsuits working through the courts, his companies would be one of the legislation’s chief beneficiaries. The idea is simple enough: The U.S. could offer film and television projects that shoot stateside a stackable incentive on top of preexisting state tax credits, making the country more competitive when compared with rivals like Australia and Canada, which already do the same. While the notion aligns with the Trump administration’s focus on tax policy and domestic manufacturing, progress on the effort has been stop-and-start for over a year. (President Donald Trump, in the past, has seemingly been far more enthused about punitive tariffs on foreign-made projects than domestic incentives.)
Nonetheless, supporters of the legislation who updated The Hollywood Reporter on its status pointed to signs of momentum irrespective of Ellison’s latest D.C. sojourn — principally that the effort has bipartisan support, with multiple Republican members of the House of Representatives having expressed interest in backing the incentive. Rep. Brian Jack of Georgia, whose district is a production hotspot and encompasses Trilith Studios, has emerged as a key backer for the legislation alongside Democrat Rep. Laura Friedman of California, who has long been attached, sources tell THR.
Other Republicans supporting the effort include Rep. Nicole Malliotakis of New York, Rep. Nathaniel Moran of Texas, Rep. Mike Carey of Ohio and Rep. Kevin Hern of Oklahoma, sources say. “There is a growing coalition of actors, of labor unions, of film production companies and a bipartisan group of members that want to see something happen by the end of the year,” says Malliotakis, whose district includes Broadway Stages and has hosted shoots forThe Godfather and Boardwalk Empire.
In a statement, her House colleague Hern asserts that Oklahoma’s entertainment industry is “booming.” He adds, “It’s created over 22,000 jobs since 2021, and that growth is only expected to continue. I’m always willing to consider new policy ideas that create jobs, attract investment, and grow Oklahoma’s economy.”
THR has reached out to Jack and Carey for comment. Moran declined comment.
Hollywood’s top unions and studios, Trump’s “special ambassador” to the industry Jon Voight and independent filmmakers, among others, are all pushing the incentive. To keep the ball rolling, the coalition is getting close to publishing an economic impact study that would make the case for why the federal government should get involved in encouraging entertainment production. Advocates are hopeful that economic data can help sway more lawmaker hearts and minds.
The coalition is also discussing organizing a “day of advocacy” in D.C. around the effort to gin up more enthusiasm, sources say.
There is additional work to be done. A couple of sources say Republican lawmakers seem to be waiting for a green light from the president. “Members of Congress are waiting for the president’s OK to go ahead and sponsor this. Meanwhile, the White House is waiting for them to propose a vehicle, so it’s a little bit of a standoff,” explains Brian Papworth, the executive director of the Coalition for American Production, which is advocating for the incentive on behalf of production-focused businesses like studio complexes and props companies.
Legislation could be included in a tax package, potentially become part of the next reconciliation package or be introduced as a stand-alone bill, but nothing has yet been decided. Adds a labor-side source, “There’s been a coalition working in D.C. on the mechanics of how an incentive would be most impactful, and it’s ready to go when and if the White House says.”
Malliotakis, meanwhile, says some details need to be ironed out. “There’s a lot of figuring out exactly how do we tailor this bill in a way that it makes sense, that it keeps jobs here, it creates economic activity and it can build a broad enough coalition of legislators, unions and industry folks where it can get across the finish line,” she says.
Advocates are working to win over the House Ways and Means Committee, whose jurisdiction includes tax policy, but overall the idea has a base of support in the chamber. It’s less clear what is happening in the Senate, where Sen. Adam Schiff — who is no friend of the White House’s — was once the legislation’s primary champion. But Ellison is said to have met with some Democratic senators about a bipartisan approach he is championing.
Could Ellison’s involvement be any kind of game-changer? Labor sources were skeptical of how impactful his participation will be. As he attempts to consummate his studio megamerger, Ellison may be a controversial messenger of an idea that is bridging ideological divides. Even so, they admitted that involvement from the executive, who is friendly with Trump, can’t hurt. If Ellison can enthuse the White House about a tax incentive rather than a tariff, Hollywood’s dream of federal support for domestic production could be realized very quickly.
Says one of those sources, “In this Washington, it just takes the White House to make it a priority to make it happen.”
Alex Weprin contributed to this story.
This story appeared in the July 22 issue of The Hollywood Reporter magazine. Click here to subscribe.
