California’s Film Production Slumps Despite Tax Incentives
WHO:
The Hollywood Reporter - FilmLA CEO Denise Gutches said, “Overall production remains far below where Los Angeles needs it to be, and crews and businesses across the region are feeling it.”
The Hollywood Reporter - Los Angeles Mayor Karen Bass said the region was “seeing encouraging signs of progress” but “we must do more,” and called for an uncapped California film and television tax credit and a federal film and television tax credit.
Deadline - FilmLA reported on on-location production in the Los Angeles area.
Deadline - California’s Film & Television Tax Credit Program supported many of the remaining projects.
Variety - California state officials had hoped to jumpstart the film economy.
WHAT:
The Hollywood Reporter - Los Angeles shoot days fell 11 percent from the previous quarter and were 36 percent below the five-year average.
The Hollywood Reporter - California’s expanded tax credit raised annual program funding from $330 million to $750 million and broadened eligibility. Subsidized projects accounted for a record 40 percent of Los Angeles on-location filming; 214 projects had been selected for incentives under the expanded program.
The Hollywood Reporter - The TV series *Tracker* moved from Canada to Los Angeles for its fourth season.
The Hollywood Reporter - TV production recorded 1,400 shoot days, down roughly 3 percent year over year. Drama production fell 9 percent to 494 shoot days, while incentive-supported drama shoot days more than doubled. Comedy production rose 143 percent to 192 shoot days, with nearly all growth coming from productions receiving tax credits.
The Hollywood Reporter - Feature filming rose 2 percent year over year to 530 shoot days. Commercial production, which is ineligible for tax incentives, fell almost 16 percent and was more than 41 percent below its five-year average.
The Hollywood Reporter - New York production spending rose 87 percent in the quarter, compared with California’s 17 percent increase, according to ProdPro.
Deadline - On-location production in the Los Angeles area totaled 4,171 shoot days from July through September 2026, down 4.8% from the same period the previous year.
Deadline - California’s Film & Television Tax Credit Program was propping up much of the remaining on-location production.
Variety - California’s $750 million investment in Hollywood had not reversed the overall production decline.
Variety - Production levels fell 3.7% in the third quarter, according to data released by FilmLA.
Variety - The share of projects receiving state subsidies continued to rise despite the decline in production.
Variety - Location shoots remained well below the five-year average.
WHERE:
The Hollywood Reporter - New York’s production spending increased faster than California’s.
Deadline - The reported on-location production decline was in the Los Angeles area.
Variety - The reported production decline and state subsidies concerned California’s film industry.
WHEN:
Deadline - The reported 4,171 shoot days covered July through September 2026.
Variety - FilmLA’s data was released Wednesday; the article identifies the reported production decline as occurring in the third quarter.
WHY:
Variety - California’s $750 million effort was intended to jumpstart the film economy; the article reports it had not reversed the overall production decline.
HOW:
The Hollywood Reporter - Mayor Karen Bass advocated an uncapped state film and television tax credit covering more production types and a federal tax credit.
Deadline - California’s Film & Television Tax Credit Program supported remaining projects through tax incentives.
Variety - State subsidies reached a rising share of projects even as production levels fell.
(UPDATED October 22, 2026 08:06 UTC)
Los Angeles production is still struggling despite California’s expanded tax-credit program. The area recorded 4,171 on-location shoot days from July through September, down 4.8 percent from the same period a year earlier; FilmLA also reported production levels 3.7 percent lower in the third quarter. Shoot days remained well below the five-year average, and the state’s $750 million investment has not reversed the decline. Tax-supported projects made up a record 40 percent of Los Angeles filming, with 214 projects selected for incentives. Television production slipped roughly 3 percent, while feature filming edged up 2 percent. Comedy production grew sharply, largely through credited projects, but commercial filming—which is ineligible for the incentives—fell nearly 16 percent. New York production spending rose 87 percent, compared with California’s 17 percent increase. Mayor Karen Bass urged an uncapped state credit and a federal incentive, saying more action is needed.
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(UPDATED October 21, 2026 20:24 UTC)
On-location film production in the Los Angeles area continued to fall in the third quarter, despite California’s major effort to revive the industry. The region recorded 4,171 shoot days from July through September, down 4.8 percent from the same period a year earlier. FilmLA’s figures also showed production levels declining 3.7 percent in the quarter, with location shoots remaining well below their five-year average. California had invested $750 million to jumpstart its film economy, but the spending had not reversed the overall decline. Instead, a rising share of projects received state subsidies. California’s Film and Television Tax Credit Program was supporting much of the production that remained, through tax incentives for qualifying projects. The figures point to continued weakness in local filming, even as state assistance plays a growing role in keeping projects in the region.