California Expands Film Tax Credits as LA Production Numbers Decline

Film and television production in Los Angeles continues to experience a downward trend, with FilmLA reporting a 13% decrease in shoot days during the third quarter of 2025 compared to the same period last year. While feature film production increased by 10%, television production fell by 21% and commercial shoots declined by 18%, resulting in an overall reduction in production activity. These statistics reflect ongoing challenges facing the entertainment industry in Southern California.

In response to these industry challenges, California Governor Gavin Newsom signed legislation earlier this year that significantly expands the state's Film and Television Tax Credit program. The expanded program aims to make Los Angeles more competitive with production hubs like London and Atlanta, which have successfully attracted projects through substantial financial incentives. Nearly two dozen productions have already received approval for tax breaks under the new program, though most have not yet begun filming.

FilmLA spokesperson Philip Sokoloski indicated that the current production statistics do not yet reflect the potential impact of the expanded tax credit program. According to Sokoloski, it will take approximately one year to fully distribute the available tax credits to qualifying productions. The organization anticipates that once implemented, these financial incentives may help reverse the current downward trend in local production activity.

The entertainment industry represents a significant economic sector for California, particularly in the Los Angeles region. The expanded tax credit program represents a state-level policy intervention designed to preserve jobs and economic activity within California's historic entertainment industry. Industry observers are monitoring whether this government initiative will effectively counter the ongoing migration of production to other locations that offer competitive financial incentives.