When Gov. Gavin Newsom signed in to law a doubling of California’s tax incentives for film and TV projects from $330 million to $750 million annually in July, the move sent a signal that the state was finally taking runaway production seriously. Yet that piece of legislation may just be the first step needed to keep more of Hollywood in Hollywood, if the latest U.S. production figures are any indication.
In the fourth quarter of 2025, California saw a 20 percent decrease in movie and TV projects filming in the state year-over-year, with production spend from those projects similarly down 22 percent, according to the Q4 report from industry tracker ProdPro released Jan. 16. Total production spend in the quarter amounted to $1.35 billion.
The Golden State, where all the major studios still have HQ lots, still claims bragging rights as the top destination overall for…