Studio executives want to film in LA, but will state tax incentive be enough?

HOLLYWOOD, LOS ANGELES (KABC) -- New data shows it has become increasingly more difficult to film in Los Angeles.

On Wednesday, a group of film and television executives led the conversation on the ever-changing entertainment industry at the "Back in Focus" conference hosted by the Hollywood Chamber of Commerce.

Topics included California's tax credit incentives and Film LA's Q3 Film Production Report.

"Our business has to be sustainable, and when the cost is too high, you can't make a show," said Jamila Hunter with Macro Television Studios. "You can't return a show."

Aside from lengthy union strikes, the state's tax credit program has also made it difficult for production to take place locally.

"Fewer than one of five films and television shows enjoyed by U.S. audiences are now made in Los Angeles," said Paul Adley with Film LA. "This is down from about 30% a decade ago."

According to Film LA's Q3 report, Q3 was the slowest film production quarter of 2024, dropping 12% from Q2. Overall production in Greater Los Angeles slipped -5.0 percent in the year's third quarter to 5,048 shoot days.

Last year, a double industry strike had for the most part paused most scripted production.

However, the reporter shows an increase in feature films and commercials, but the biggest drop was in reality television where production fell by 56%.

Want to read the full report? Click here.

In October, Gov. Gavin Newsom proposed doubling California's TV and film tax credit from $330 million to $750 million.

"This is about jobs, this is about investments, and it's about recognizing the world we invented is now competing against us," said the governor at the time.

Production and studio heads at Thursday's event said they would prefer to shoot in L.A. and California, but they have been looking outside of the state - even outside of the country.

"We don't want to have to get on planes flying across the world to make these shows. You guys can at least talk about a tax credit. We don't even have one in unscripted," said Allison Wallach with Fox Entertainment Studios.

Film LA said this summer, several series were filming their first season in L.A. because they qualified for the state filming incentive, including: "Forever," "High Potential," "Matlock," and "Orphan."