Los Angeles' share of U.S. scripted series filmed in the city plummeted from 40% in Q1 2019 to less than 25% in Q1 2026, according to Luminate. A drastic reduction in local production means fewer jobs and diminished economic activity for the region. The decline impacts technicians, artists, and supporting businesses, marking a significant shift in where film and TV production occurs.

California significantly boosted its film and television tax credit program funding and rates. Despite this, movies and TV productions are rapidly leaving the state, creating a tension between policy efforts and market realities.

California is trading significant public investment for a diminishing return on local production. California's trade of significant public investment for a diminishing return on local production confirms that underlying economic forces driving productions away are more powerful than financial incentives alone.

California's Ambitious Bid to Lure Productions Back

California's Film and Television Tax Credit Program 4.0 offers a 35% to 45% tax credit for qualifying productions, according to TheWrap. California's aggressive incentive structure, offering a 35% to 45% tax credit for qualifying productions, aims to counter the outflow of projects and make the state more competitive.

Television series relocating to the state in their first year of receiving a California tax credit are eligible for a base credit of 40%, TheWrap also reported. The provision that television series relocating to the state in their first year of receiving a California tax credit are eligible for a base credit of 40% specifically targets high-value, established productions to bring their entire operation to California. California has not only increased funding but also enhanced its incentives, specifically targeting high-value and relocating productions.

The Unrelenting Decline in Los Angeles Production

  • 40% to less than 25% — Los Angeles' share of U.S. scripted series filmed in the city dropped from 40% in Q1 2019 to less than 25% for Q1 2026, according to Luminate.
  • 10.7% — Shoot days in Los Angeles increased by 10.7% in the first quarter of 2026 compared to the last quarter of 2025, according to TheWrap.
  • -3.3% — Shoot days in Los Angeles were down 3.3% year-over-year in Q1 2026, according to TheWrap.