Paramount Skydance CEO David Ellison is reportedly a quiet but active supporter of a bipartisan bill aimed at creating a federal film tax incentive.

Sources indicate that Ellison has spent at least six months engaging in exploratory meetings regarding the proposed legislation.

This development is significant as a federal film tax incentive could offer substantial financial relief to content producers who currently seek rebates internationally, potentially bolstering domestic production.

Ellison was recently in Washington, D.C., where he met with top Republican leadership to discuss the matter.

The names of specific politicians from both parties involved in the bill have not yet been disclosed.

This push for a federal incentive comes as Hollywood labor unions, including the DGA, IATSE, and SAG-AFTRA, have also advocated for such a program.

The DGA, in its recent contract negotiations, even stipulated that top studio executives must participate in lobbying efforts for more favorable domestic filming incentives.

Currently, California offers a significant TV and film tax credit valued at $750 million, but a similar program does not exist at the national level.

A federal incentive could also enhance the appeal of filming in states like California.

Ellison's efforts to secure a federal film tax incentive are unfolding amidst a separate legal challenge.

On the same day as his D.C.

meeting, a coalition of 13 state attorneys general, led by California's AG Rob Bonta, filed an antitrust lawsuit to block Ellison's proposed acquisition of Warner Bros.

The lawsuit alleges that the $111 billion merger between Paramount and Warner Bros.

would violate the Clayton Act by reducing competition in several markets, including wide-release theatrical distribution and basic cable licensing.

According to the suit, a combined company would control a significant portion of these markets, potentially leading to higher prices, lower quality, and less content for consumers.

Paramount has issued a statement refuting the lawsuit's claims, calling them "fundamentally flawed" and arguing that delaying the transaction would harm entertainment workers.

The Department of Justice had previously approved the deal in March.

Hollywood unions and stars have expressed concerns about the merger, fearing its potential negative impact on an already struggling industry.