FilmLA Report: California's $750 Million Film Tax Credit Fails to Halt Production Decline

According to data from FilmLA released on Wednesday, production in Los Angeles experienced a decline of 3.7% in Q3 2026, despite the state's expanded film and TV tax credit. Location filming remains below the average of the past five years. Governor Gavin Newsom has advocated for increasing the state incentive from $330 million to $750 million per year, starting July 1, 2025. Mayor Karen Bass acknowledged a reduction in shooting days but highlighted improvements, noting that the percentage of scripted projects benefiting from subsidies has nearly doubled since last year. Nithya Raman, Bass's opponent in the election, criticized her for inadequate measures. Last quarter, 40.2% of scripted shows received the state credit, with Netflix's "The Further Mis-Adventures of Cliff Booth" among the few major productions in LA, supported by $20 million in tax credits.