By all appearances, California all but waved the white flag as far as getting features to shoot in the state. There wasnt any one thing that caused the exodus of big-budget films. It was a combination of sky high labor costs, oversubscription to the tax credit program and the allure of bountiful subsidies to shoot elsewhere. Amid a tit-for-tat race to host Hollywood to boost their local economies, regions across the world like New York, New Jersey, the U.K. and Australia beckon to production executives increasingly turning to penny-pinching.

Indeed, the flight of features away from the state was reflected in a new report from FilmLA issued on Tuesday. The three-month period from April to June saw a roughly 21 percent drop-off compared to the same period last year, according to the nonprofit group that handles film permits for the city and county. But another report from production tracking service ProdPro that follows global filming trends for the first half of 2025 signals that features could soon return to California. While only 15 movies with budgets over $10 million filmed in the state in that timeframe, it found that there are 95 titles in active development or preproduction more than New York, Georgia and New Mexico combined.

There are a couple explanations for the upswing in movies slated to shoot in California. Earlier this month, the state modified its film and TV tax credit program to increase the cap from $330 million to $750 million. The changes bumped the base credit from 20 to 35 percent, which will likely shower productions with significantly more subsidies, though legislators mostly targeted swaying TV shows to film in the state. It made sense for the tax incentive scheme, which has always prioritized jobs creation. TV production has long been anchor of filming in California, providing high-paying union jobs to behind-the-scenes crew for the duration of the series. The application window for the new program opened on July 7 for TV shows, with another opening in August for films.

Another explanation for the return of features lies in the Stay in L.A. movement, which has called for fleeing film and TV productions to return to their cultural home in Southern California. The grassroots campaign, founded in the wake of Januarys wildfires, have headlined local rallies and lobbied politicians for city policy reforms. Its message may have resonated with production execs, whove said that Californias subsidies to Hollywood just need to get close enough to others regions to shoot in the state. The Entertainment Union Coalition has also called on studios to recommit to the communities and workers across the state that built this industry and built their companies.

As it stands, the production outlook in California is grim. Filming levels in Los Angeles slipped roughly six percent in the three month period from April to June compared to the same period last year, according to Tuesdays FilmLA report. Features were the hardest-hit category of production.

Filming for TV series fared far better with a 17 percent increase, posting the highest levels of shooting since the first quarter of last year, though its still down 32 percent versus the five year average. Dramas (up 9.5 percent) are on the upswing, as is reality (up 29.5 percent). TV productions that show in L.A. last quarter include High Potential S2 (ABC), 9-1-1 S8 (Fox), and Lincoln Lawyer S4 (Netflix).

While there is work ahead to bring Los Angeles-area production back to its full potential, we are optimistic and grounded in our mission to keep production affordable, accessible and straightforward, said FilmLA President Paul Audley. We look forward to our continuing conversations with government officials and our partners in the industry to see the full fruition of the economic, cultural, and employment benefits that Los Angeless film ecosystem offers to our community.