US Film Production Stabilizes in 2026 as Expanded State Incentives Keep Work at Home

After four consecutive years of losing production share to other countries, film and TV spending in the United States stabilized in the first quarter of 2026 — the first meaningful reversal of a trend that had been squeezing domestic crew work since the post-strike contraction began.

The primary driver is California’s Program 4.0, which doubled the state’s annual film and TV tax credit cap from $330 million to $750 million starting July 2025. In the first full fiscal year, 170 productions were approved for credits representing $6.6 billion in direct production spending and a 53% year-over-year increase in approved projects. New York also increased its program cap to $800 million, with $100 million specifically allocated to independent productions at a 30% base credit plus up to an additional 20% for productions that do film scoring in-state or shoot in upstate counties.

The results are showing up in production consultant ProdPro’s annual survey of studio executives. In 2025, no US states appeared in the top five preferred production hubs. In 2026, New York ranks first, California third, and Georgia fourth — all three now in the top five for the first time in years.

Other notable incentive developments for US-based crew: New Jersey extended its film incentive program through 2049 with credits up to 40% for in-state studio partners; New Mexico increased its funding cap to $130 million; and Iowa launched a new 30% cash rebate pilot for 2026–2027. Georgia also expanded its post-production tax credit through January 2026 with a new 20% credit for post-production companies.

The stabilization is real but fragile. ProdPro notes that high-budget greenlights continue to decline globally, leaving production hubs competing for a smaller overall pie even as the US share of it recovers.