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Hollywood Faces Production Crisis as California Debates Expanded Tax Incentives

A 22% drop in on-location filming and the exodus of post-production work highlight the urgent need for reform to retain jobs in Los Angeles' struggling film industry.

Overview

  • Los Angeles has seen a 22.4% decline in on-location filming during the first quarter of 2025, according to FilmLA data, reflecting a worsening trend in production flight.
  • Post-production sectors, including scoring, visual effects, and sound editing, are losing jobs to states and countries offering more competitive tax incentives.
  • Governor Gavin Newsom and state legislators have proposed doubling California’s film tax credit cap to $750 million annually, alongside other reforms to attract productions back to the state.
  • Industry leaders and workers are advocating for a dedicated post-production tax incentive carve-out, citing successful models in New York, Louisiana, and international locations.
  • Public rallies, town halls, and campaigns like 'Stay in LA' are mobilizing support for legislative action, emphasizing the economic and cultural stakes for California's entertainment industry.

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