Hollywood preps for TV, film exodus as companies seek tax credits elsewhere

Hollywood is preparing to battle a major TV and film exodus. According to FilmLA , on-location shooting in Los Angeles dropped 12% in the second quarter of 2024, compared to last year. That’s even with the start of the Writers Guild of America Strike in May 2023.

The Wrap reported only two of the 12 TV shows that won primetime Emmys this year were filmed in California, which were “Hacks” and “The Morning Show.”

A big sticking point for companies is the fact that California does not permit productions to include salaries of actors, directors or other top talent toward any tax credits.

Production hubs in other locations like Georgia, where Marvel has filmed several movies, and the U.K. where “Wicked” was filmed, allowed above-the-line salaries to be deductible.

Another example is Gordon Ramsay’s show, “Masterchef,” which moved filming from LA to London.

California offers a $330 million TV and film tax credit program. It gives studios and producers tax credits up to $25 million based on eligible spending of 20% to 30% on productions in the state.

Some argue to stop the exodus in California, the incentive amount would need to triple and the types of productions that can apply would need to expand.

California Rep. Laura Friedman, D-Burbank, told The Wrap that Los Angeles city government officials would also need to look at ways to eliminate permit feeds and other costs it charges productions to film in the city.

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