Los Angeles production declined slightly in the second quarter of 2026 as increased state tax incentives failed to overcome industry headwinds.
Filming days for TV, movies and commercials decreased 3.1% compared to the previous quarter, according to FilmLA, which tracks location permit data in the Los Angeles area. Both movies and commercials declined, offsetting the increase in television production in the quarter, but all three categories remain well below historical levels.
Last year, California more than doubled its support for film and television production in response to the post-strike recession. This increase began to take effect early this year, with production volumes increasing slightly from the final quarter of 2025, leading to hopes that the industry has ‘turned the corner’. However, although more projects are receiving state subsidies, the overall trend is still declining.
The report included some bright spots, including an increase in production days for reality TV after a long period of decline. TV dramas also increased for the second consecutive quarter, but comedies decreased. (Comedy is not fully captured in location reports, as most comedy production takes place on soundstages.) Overall television production was up about 34% quarter over quarter, but down from the same period in 2025 and down almost 50% compared to the five-year average.
The report also showed that an increasing proportion of remaining works receive state tax credits. One-third of feature film shooting days were from subsidized projects, up from 22% in the previous quarter. Television dramas and comedies also had significant state sponsorship, with 38.3% and 36.8% of filming days, respectively, coming from tax credit projects.
Commercials and most reality TV shows are not eligible for state incentives, as lawmakers have chosen to focus on categories with the highest concentration of unions.
“Scripted television production supports more industry jobs than any other production category, so helping attract these types of productions is an important step in bringing filming back to the region, restoring jobs and strengthening the local production economy,” said FilmLA CEO Dennis Gatches.
Overall, FilmLA’s report confirms a “new normal”: LA’s small industry more strongly supported by state incentives.
“While there is still much work to do, FilmLA’s quarterly report proves that incentives are working. Local, incentivized productions are on the rise, creating good-paying union jobs and realizing economic opportunity for Angelenos,” Mayor Karen Bass said in a statement.
The production slump is a major theme in the Los Angeles mayoral race. City Councilor Nitya Raman, who is running against Bass in the November runoff, argued that Bass was not doing enough to facilitate permits. Raman and Bass both called on the state to remove the $750 million cap on the incentive program.
