Los Angeles Film Production Declines 4.8% in Q3 2026 Amid Tax Incentives
Los Angeles experienced a decline in film production in the third quarter of 2026, according to a report from FilmLA, with tax credit projects making up a growing share.
On-location filming in Los Angeles fell by 4.8% in the third quarter of 2026, totaling 4,171 shoot days, according to a report from FilmLA. This decrease continues a trend that has seen production levels drop significantly compared to previous years, remaining nearly 29% below the five-year average.
The decline in production persists despite California’s expanded Film & Television Tax Credit Program, which now accounts for approximately 40.3% of on-location filming. This is nearly double the share from the previous year, but does little to offset the overall downward trajectory. “Where the tax credit applies, it’s working to bring productions back to Los Angeles and put local crews to work,” said Denise Gutches, CEO of FilmLA.
Television productions recorded a total of 1,400 shoot days, a decline of 2.8% compared to the same timeframe in 2025. However, productions benefiting from state incentives saw gains; 62% of TV comedy shoot days and 49.4% of TV drama shoot days were linked to these credits.
Commercials and Feature Films
Feature films experienced a slight increase in production, with 533 shoot days representing a 2.1% rise compared to the previous year. However, this figure still falls short of ideal levels, approximately 19.3% below the five-year average. Conversely, commercial production suffered a 15.9% drop, totaling 562 shoot days, as these projects are not eligible for tax credits.
Overall production numbers plummeted 3.7% in Q3 2026, marking a stark contrast to the hopes expressed by state officials following the expansion of the state’s tax credit program from $330 million to $750 million annually. Mayor Karen Bass acknowledged some progress but emphasized the need for further action, advocating for an uncapped tax credit program.
Competition remains tough as states like New York attract more productions. Recent reports indicate that New York’s production spending increased by 87%, compared to California’s 17% uptick.
Officials continue to discuss potential reforms to the incentive program, including making provisions for above-the-line costs to qualify for subsidies. The ongoing challenges indicate a pressing need for changes to sustain and invigorate Los Angeles’s film industry.
