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California Film and TV Production Falls 20% in Q4 Despite Expanded Tax Credits

Industry data suggest California could be losing more than $1 billion in spending to other states.

Overview

  • ProdPro data reported by The Hollywood Reporter show a 20% drop in projects and a 22% year-over-year spending decline in the fourth quarter of 2025.
  • California hosted 71 productions with $1.356 billion in spend, compared with New York’s 63 projects totaling $1.075 billion.
  • New Jersey, Georgia, Illinois and New Mexico together tallied 64 productions with $972 million in spending.
  • Gov. Gavin Newsom increased the annual film and TV tax-credit pool from $330 million to $750 million in July 2025.
  • Commentary attributes the shift to higher costs, wage-hour and union rules, and limits on eligible spending under the credit program, and Breitbart reports studios are building permanent facilities in states like New Jersey and Georgia.