California, LA keeping Hollywood at home

OPINION – Superman may have come to the rescue of the summer box office, but in Hollywood’s real-life cliffhanger, the state of California and the city of Los Angeles are stepping into the role of hero.

Facing fierce competition from other states offering generous annual incentives, and with AI barreling toward the industry like a runaway train, Gov. Gavin Newsom held a signing ceremony last month for new legislation that expands access to the state’s film and television tax credit, a resource the state has doubled to $750 million annually. The measure, which took effect immediately prior to the Independence Day holiday weekend sends a clear message: California is serious about keeping Hollywood right here at home.

The need couldn’t be more urgent.

According to FilmLA, on-location filming in greater Los Angeles dropped a staggering 22.4 percent from the first quarter of 2024 to the first quarter of 2025. Television production fell by 30.5 percent, and feature film production declined by 28.9 percent. These aren’t just numbers. They represent shuttered businesses, empty parking lots and paychecks that never arrived.

With more than a dozen new television shows recently awarded credits through the film and TV credit program, Gov. Newsom projects $1.1 billion in new economic activity and nearly 6,700 cast and crew jobs distributed across California.

At the local level, red tape and complex permitting processes have made it harder to keep production in LA. In April, we on the Los Angeles City Council adopted a motion to streamline permitting, expand access to City-owned filming locations, reduce excessive permitting fees and eliminate bureaucratic hurdles that delay filming and drive up production costs.

Citing similar concerns, Mayor Karen Bass issued an executive directive on May 20 to accelerate permit approvals and make city-owned locations, such as the Griffith Observatory, more accessible.

These local and state efforts matter. While some productions like “The Morning Show” are filmed in LA, loyalty is not a long-term strategy. Other jurisdictions are offering better deals, and producers are taking notice.

That’s why Assembly Bill 1138, along with the city’s policy reforms, give us the tools to compete. They reflect the realities of modern content creation, and they provide a pathway not just to recover, but to grow California’s competitive advantage in a fast-changing industry.

Among the key reforms of AB 1138:

• Raising the expenditure cap for independent films from $10 million to $20 million, giving more diverse, emerging voices a realistic shot at success.
• Allowing productions to receive up to $21 million in tax credits for a single season of a TV series, which can help secure long-term commitments from studios.
• Expanding eligibility to include animation, large-scale competition shows, and other evolving formats that reflect the way audiences consume content today.
• Increasing the base credit from 20 percent or 25 percent up to 35 percent or 40 percent, making California more competitive with other states and countries offering lucrative tax incentives.

We know these programs work. The state’s Film and TV Credit Program has proven effective in maintaining and growing industry jobs in previous years. According to the California Film Commission, film and television productions support more than 700,000 jobs and generate nearly $70 billion in wages for California workers.

A Los Angeles County Economic Development Corporation study found that for every dollar the state allocates in tax credits, California receives $24.40 in economic output, $16.14 in gross domestic product, $8.60 in wages and $1.07 in tax revenue to state and local governments.

Yes, Hollywood faces headwinds from global competition to evolving technology. But the state and the city are doing everything they can to keep Hollywood home. There is also reason for cautious optimism that President Trump might collaborate with the entertainment sector to help bring more production work back to the U.S.

At the same time, we must prepare for what’s next. Artificial intelligence is already transforming how content is developed and distributed. Instead of fearing disruption, we must embrace innovation by investing in workforce training, supporting ethical AI development and ensuring workers are protected and included in the future of storytelling.

Los Angeles has always been a place where dreams are made. But dreams need more than imagination. They need infrastructure, policy and a community that believes in the power of creativity.

Let’s not let our signature industry slip away. Let’s stand up for the jobs it creates, the culture it represents and the city it helps define.

Adrin Nazarian is a Los Angeles City councilmember representing District 2 in the Southeast San Fernando Valley and is the author of the motion initiating reform of the city’s film permit process. John Lee is a Los Angeles City councilmember representing District 12 in the Northwest San Fernando Valley.