Ellison Backs Federal Film Tax Incentive Amid Warner Merger Suit
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- David Ellison has spent at least six months in exploratory meetings to advance a bipartisan federal film tax incentive, with a recent Washington, D.C. dinner including top Republican leadership to discuss the proposal.
- California Attorney General Rob Bonta led a coalition of 13 states in filing an antitrust lawsuit to block Ellison’s $111 billion Warner Bros. merger, arguing it would control 27% to 30% of key film distribution markets.
- Paramount fired back at the lawsuit, claiming it misapplies antitrust law and harms entertainment workers already impacted by industry disruption and job losses in California.
- Hollywood labor unions, including the DGA, IATSE, and SAG-AFTRA, have advocated for federal filming incentives, with the DGA’s new contract requiring top studio executives to lobby for them.
- The federal film tax incentive would address the lack of national support for domestic production, complementing California’s existing $750 million TV and film tax credit.
Why it matters: Ellison’s push for a federal incentive gains urgency as the merger fight unfolds—California’s top prosecutor is suing to block his deal while standing to benefit from policies that keep productions in-state. The irony sharpens as unions demand incentives even as they oppose consolidation that could reshape the industry’s power structure.
