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Paramount Nabs $37 Million-Plus in California Tax Credits to Shoot In State Amid Battle With AG
Paramount has secured more than $37 million in California film tax credits to shoot projects including the Viola Davis thriller "Ascent" and a "Clueless" sequel series, at a time when the studio is locked in a dispute with California's attorney general over its $111 billion takeover of Warner Bros. Discovery. The award matters because Tennessee has been actively courting Paramount chief executive David Ellison to relocate production there, raising the stakes for Los Angeles, where filming activity is already near historic lows.
Paramount Television Studios and CBS Studios ranked second among recipients, behind Disney's $45 million for an untitled detective series, in a batch of incentives the California Film Commission announced on Monday. In total, nine productions spending over $498 million across 1,032 shoot days received $145.5 million in credits, with seven being new to the state; other beneficiaries included Universal Television ($26.8 million), Sony Pictures ($16.2 million), Amazon ($11.6 million) and Netflix ($1.2 million). Governor Gavin Newsom hailed the expanded tax credit programme as a driver of jobs and economic activity, while CBS Studios' David Stapf said the funding would support returning seasons of "Matlock" and "NCIS: Origins" alongside the new "Clueless" series in Los Angeles.
In short
- Paramount wins $37m+ in California tax credits for new shows.
- Comes amid Paramount's legal clash with California over Warner Bros. Discovery deal.
- Tennessee is courting Paramount to shift production out of state.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The case for tax credits rests on economic pragmatism: California's film production is at historic lows, and states like Tennessee actively recruit studios away. Without competitive incentives, production jobs and associated spending migrate elsewhere permanently. The $498 million in spending across these nine projects generates employment, worker tax revenue, and supports California's entire film ecosystem. Allowing major studios to relocate would hollow out Los Angeles's industry and harm thousands of dependent workers and service providers.
The case against
The sceptical case questions whether profitable corporations warrant substantial public subsidies when California faces competing fiscal pressures. Tax credits represent money unavailable for schools, healthcare, or infrastructure—genuine opportunity costs citizens bear. The timing troubles observers: negotiating incentives whilst locked in an attorney general dispute over a major merger raises questions about whether this reflects sound policy or regulatory leverage. Moreover, tax incentive races between states typically shift rather than create employment, with studios demanding ever-larger subsidies whilst net job gains remain empirically unclear.
Explained simply
California’s film tax credit scheme offers studios a share of production costs in exchange for filming in the state. The California Film Commission awards the credits, which are intended to support local jobs and spending; studios can apply for them for eligible projects.
Paramount Television Studios and CBS Studios are part of Paramount, whose chief executive is David Ellison. The company is also seeking to take over Warner Bros. Discovery, a deal being contested by California’s attorney general, while Tennessee has been trying to attract Paramount’s production work.
The credits matter to California’s film industry because they can influence where studios choose to shoot. Los Angeles has seen filming activity fall to very low levels, so keeping productions in the area is an economic concern for the city and the state.
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