L.A. Filming Activity Continues to Drop Even as California Tax Credits Flow

On-location filming in Los Angeles has fallen sharply despite California distributing hundreds of millions of dollars in film and television tax incentives, according to new data reported by The Hollywood Reporter.

The decline signals that incentive dollars alone aren’t keeping productions in the region. Competing states and international destinations continue to lure projects away from L.A. with more aggressive rebate programs, lower below-the-line labor costs, and cheaper location fees.

For crew based in Southern California, the numbers reflect a painful day-to-day reality: fewer shoot days, longer gaps between jobs, and pressure to travel or relocate to stay employed. Producers and UPMs sourcing local hires and vendors in L.A. are working a shrinking pool of active productions.

California’s incentive program has faced ongoing criticism for its cap structure and waitlist backlog, which can delay credit allocation by months and create cash-flow uncertainty for smaller productions. While the state has periodically expanded the program, the gap between available credits and production demand has kept many projects looking elsewhere.

No specific remediation measures or program changes were announced alongside this report. Crew and vendors in the L.A. market should factor continued softness into their 2024-2025 planning.