Los Angeles production volume fell slightly in the second quarter of 2026, as an increase in state tax incentives has failed to overcome industry headwinds.
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Shoot days for TV, film and commercials dropped by 3.1% compared to the previous quarter, according to FilmLA, which tracks location permit data for the L.A. region. Films and commercials both dropped, offsetting an increase in TV production for the quarter — though all three categories remain well below historic levels.
California more than doubled its support for film and TV production last year in response to the post-strike slump. That increase started to show an effect earlier this year, when production volume ticked up somewhat from the last quarter of 2025, leading to hopes that the industry had “turned a corner.” But while more projects are receiving state subsidies, the overall trend is still down.
The report had a few bright spots, including an increase in production days for reality television, after a long downward slide. TV dramas were also up for the second quarter in a row, while comedy was down. (Comedies are not fully captured by the location report, as most comedy production takes place on soundstages.) Overall TV production was up about 34% from the prior quarter, though down from the same period in 2025, and down almost 50% from the five-year average.
The report also showed that an increasing share of the productions that remain are receiving the state tax credit. A third of all feature film shoot days came from subsidized projects, up from 22% in the prior quarter. TV dramas and comedies were also heavily state-sponsored, with 38.3% and 36.8%, respectively, of shoot days coming from tax credit projects.
Commercials and most reality shows are not eligible for state incentives, as lawmakers have chosen to focus on categories with the highest concentration of unionized labor.
“Because scripted television production supports more industry jobs than any other production category, helping to attract these types of productions is an important step towards bringing filming back to the region, restoring jobs, and strengthening our local production economy,” said Denise Gutches, CEO of FilmLA.
Overall, the FilmLA report confirmed a “new normal” — a smaller L.A. industry that is more heavily supported with state incentives.
“While there is still much work to do, FilmLA’s quarterly report is proof that incentives are working: local incentivized productions are on the rise, creating good-paying union jobs and realizing economic opportunity for Angelenos,” said Mayor Karen Bass, in a statement.
The downturn in production has been a major theme of the Los Angeles mayor’s race. Councilwoman Nithya Raman, who will face Bass in a November runoff, has argued that Bass has not done enough to make permitting easier. Raman and Bass have both called on the state to eliminate the $750 million cap on the incentive program.