Los Angeles and California officials are fighting to keep the spotlight from slipping away as movie and television producers chase cheaper incentives around the world.
Mayor Karen Bass has issued an executive directive aimed at keeping production jobs in Los Angeles by slashing permitting red tape, reducing costs and making iconic public sites like Griffith Observatory more accessible to crews.
Film and television production has long propped up Los Angeles’ real estate economy, from soundstages to postproduction offices. But with on-location filming down 22% in the first quarter of 2025 and occupancy at soundstages dipping to 63%, city and state leaders are scrambling to compete with cheaper rivals like Georgia, Canada and the United Kingdom.
niThe mayor’s directive is part of a broader campaign that includes calls for a national film tax credit, a doubling of California’s incentive cap to $750 million, and renewed efforts to bring marquee productions back to the city.
“We need to cut the red tape and roll out the red carpet for our film crews,” said Los Angeles City Councilmember Adrin Nazarian, who authored a related motion to streamline film permitting, in a statement. “Film and TV production aren’t just essential to our economy — they’re essential to our identity as a city.”
The directive instructs city departments to reduce fees, shorten review timelines and designate just one city staff member to monitor filming on location for each production — down from the multiple personnel often required now. It also calls for proactive communication between agencies and production crews about planned infrastructure work and outlines new filming guidelines to expand access to civic landmarks like the Central Library and Port of LA.
A shifting industry
Developer and Los Angeles Rams owner Stan Kroenke is already betting on a rebound. At Hollywood Park in Inglewood, Kroenke plans to break ground next month on a 12-acre production campus that will serve as the International Broadcast Center for the 2028 Olympics before transitioning into commercial studio use.
Other studio projects are advancing despite uncertainty. BLT Enterprises just leased a 10,000-square-foot soundstage in Hollywood, and the city is working to expedite completion of 7 million square feet of new or upgraded studio space, including the $1 billion modernization of Television City and Warner Bros.’ $500 million expansion in Burbank.
California Gov. Gavin Newsom recently touted a proposal for a $7.5 billion federal incentive fund based on California's that would encourage productions to film in the United States instead of other countries.
But California’s current tax credits, capped at 25% and limited to $100 million in qualified expenses, can’t yet match the subsidies offered abroad. Australia pays up to 40% of production costs; Canada offers 36%, plus a strong dollar; And the U.K., which saw $7 billion in production spending in 2024, provides up to 26% in tax relief.
Some industry leaders say the fight to retain production has become existential.
“If we let this industry die, everything is going to get worse,” State Sen. Ben Allen, who is backing legislation to broaden eligibility for California’s incentives, said at a press conference.