How L.A. stopped being Hollywood's leading star

Key Points:

• A high-budget Netflix crime drama originally planned to film in Los Angeles moved production to New Jersey after California rejected its tax credit applications, highlighting ongoing challenges in retaining film projects locally despite improvements to the state's incentive program.
• Los Angeles has experienced a significant decline in film and TV production, with shoot days dropping 20-30% in Q2 2024 compared to the previous year, resulting in the loss of approximately 57,000 industry jobs and the closure of over 80 production service businesses since 2022.
• The exodus of productions from Los Angeles is attributed to rising costs, complex permitting processes, and stronger tax incentives offered by other states and countries, such as Canada, Georgia, New York, and the UK, which have attracted major studios and streaming platforms.
• California's film tax credit program, initially introduced in 2009 and expanded in recent years, remains limited by funding caps and restrictions on covering actors' salaries, making it less competitive than incentive programs elsewhere that offer larger, uncapped credits.
• Despite these challenges, some high-profile projects like HBO's "The Pitt" and Amazon's "Fallout" have returned or remained in California due to expanded tax credits, and officials including Mayor Karen Bass are advocating for further reforms to support the local entertainment industry.