California Expands Tax Incentives, but Los Angeles Exterior Film Production Still Decreases

A report released on Wednesday, October 21, revealed that despite California’s expanded film and television tax credit program leading to a significant increase in production projects, exterior filming in Los Angeles continued to decline in the third quarter of 2026.

According to a report by a local news agency, FilmLA, a non-profit organization responsible for coordinating film permits in the Los Angeles area and tracking exterior production, stated that from July to September, there were 4,171 filming days locally, a 4.8% decrease from the same period last year’s 4,380 days.

Based on production data from FilmLA, overall filming also dropped by approximately 11.5% compared to the second quarter, with a decline of about 38.5% from the average level of the third quarter over the past five years.

Meanwhile, FilmLA reported that production projects qualifying for state government tax credits accounted for 40.3% of the total script exterior filming, nearly double the proportion from a year ago. In terms of feature films and television productions, projects receiving tax credits collectively filmed 505 days, more than double the number from the third quarter of 2025 (242 days).

Denise Gutches, CEO of FilmLA, stated, “The measures taken under the applicable tax credits have indeed helped bring production projects back to Los Angeles, providing job opportunities for local crews. However, overall production levels remain far below what Los Angeles requires, and the entire region’s crew members and related businesses have felt the impact.”

In the third quarter, television productions filmed a total of 1,400 days, a 2.8% decrease from the 1,441 days during the same period last year. However, television comedies were a notable exception, with a 143% increase in filming days from 79 days last year to 192 days.

Tax credit-qualified television comedy projects filmed a total of 119 days, compared to just 15 days during the same period last year. These projects accounted for 62% of the television comedy filming days, a significant increase from 19%.

The growth in television comedy production was mainly attributed to California’s expanded tax credit program, making more television production projects eligible for incentives. Television comedies filmed in Los Angeles include “Shrinking,” “High Potential,” “I Love LA,” and “Rooster.”

The filming days for television dramas were 494, a 9.4% decrease from 545 days during the same period last year. However, award-winning television dramas saw a more than doubled increase in filming days from 112 to 244, representing 49.4% of all television drama filming days. Shows filmed in Los Angeles include CBS’s “Tracker,” moving its fourth season production location from British Columbia, Canada, to Los Angeles.

Elwood Reid, showrunner and executive producer of “Tracker,” said, “Today, tax credits influence location decisions, and California’s incentive policies allowed us to bring ‘Tracker’ here. With 22 episodes per season, shows like ours that relocate production sites provide a significant number of stable job opportunities.”

In addition, the filming of reality television programs decreased by 2.9%, from 649 days during the same period last year to 630 days.

The filming of feature films increased by 2.1%, from 522 days in the third quarter of 2025 to 533 days; a 20.3% increase compared to the second quarter. Locally filmed movies include Netflix’s “13 Going on 30,” Warner Bros.’ “Cut Off,” and several independent production films.

Commercial advertisement filming that did not qualify for California’s film tax credits saw a 15.9% decrease, from 668 days during the same period last year to 562 days.

FilmLA’s “Other” category includes documentaries, student films, still photography, web content, and music videos, with a 4.2% decrease in filming days to 1,676. Web content filming increased by 16.3%, reaching 556 days. FilmLA noted that this reflected an increasing production volume of short-form and vertical format audiovisual programs.

Los Angeles Mayor Karen Bass mentioned that the growth in production projects qualifying for tax credits and television comedy filming indicates signs of improvement, but she acknowledged that overall production activities are still weak.

Bass stated, “The increase in television comedy production by 143% and the growth of production projects qualifying for tax credits doubling the local filming days compared to the same period last year. These increases demonstrate that the incentives indeed work, but we need to do more.”

Bass called for the establishment of an unrestricted state-level film and television tax credit program in California, incorporating a broader range of production projects and introducing federal-level film and television tax credit policies.

On October 7, the California Film Commission announced granting tax credit eligibility to 35 films, including 28 independent production films. These projects are expected to generate 1,049 filming days statewide. According to the commission, 214 projects have qualified for California’s expanded incentive program since July 2025.

Gutches noted that as more approved projects begin production, the impact of this program may further expand.

FilmLA’s data covers approved exterior filming activities within its service range, excluding production conducted in certified studios and filming outside its jurisdiction. ◇