Entertainment

California film production keeps falling despite $750 million tax credit

FilmLA data show third-quarter production fell 3.7%, even as subsidized scripted shows reached 40.2%.

Updated Oct 21, 2026 · 20:14 UTC2 reports

The short version

FilmLA data show California production fell 3.7% in the third quarter despite the expanded state film incentive.[Variety]
The state raised its annual film and TV incentive to $750 million in 2025, a move Gov. Gavin Newsom led.[Variety]
Subsidized projects reached 40.2% of scripted shows, nearly double last year, while overall production still declined.[Variety]
Mayor Karen Bass wants an unlimited state incentive, and mayoral rival Nithya Raman has called for removing the cap.[Variety]

FilmLA data show California production fell 3.7% in the third quarter, even as the share of subsidized projects continued to rise.[Variety]
Gov. Gavin Newsom led the 2025 move to increase the state film and TV incentive from $330 million per year to $750 million.[Variety]
According to FilmLA, 40.2% of scripted shows filming in the last quarter received the state tax credit, nearly double the figure from a year earlier.[Variety]
Mayor Karen Bass highlighted encouraging signs of progress and reiterated support for an unlimited state incentive.[Variety]
FilmLA VP Philip Sokoloski said the organization was disappointed by the overall decline, though some state-supported categories increased.[Variety]
FilmLA CEO Denise Gutches said overall production remains far below where Los Angeles needs it to be.[The Hollywood Reporter]

Whether the expanded tax credit is driving the rise in subsidized projects or failing to reverse the overall decline is disputed; officials differ on its effectiveness.[Variety · The Hollywood Reporter]

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.