It has been known for months that David Ellison supports the idea of a federal film tax incentive. This incentive continues to gain support in the legislature. As a potential leader of the Paramount-Warner Bros. Discovery merger, Ellison knows that his entertainment empire would benefit from such an incentive. The fact that the U.S. offers an incentive that can be added to individual state tax credit programs is a significant advantage for him.

On Monday, California Attorney General Rob Bonta and 11 state regulators filed a lawsuit to block the proposed $111 billion Paramount-Warner Bros. merger, while new details emerged about Ellison's actions to support this legislation. Ellison made one of his visits to D.C. to advocate for this bill. According to confirmation from the Hollywood Reporter, Ellison and chief legal advisor Makan Delrahim met with Republican House members.

Previously, Senator Adam Schiff and Representative Laura Friedman had been trying to gather support for the federal tax incentive bill. However, former President Donald Trump's animosity towards Schiff was seen as a disadvantage in the industry. Ellison's initiative could help persuade Trump to consider this idea. Ellison's efforts on this matter could be critical for the future of Hollywood.