After years of taking its signature industry for granted, California is finally working to bring production home.
The state’s modernized Film and Television Tax Credit, backed by a $750 million commitment, is delivering real results for one of its largest economic engines. Since the new program launched in July 2025, nearly 180 productions receiving the credit have generated $7.2 billion in economic activity, with more to come. Still, as competition from other states and countries intensifies, Sacramento’s decisions will determine whether the recovery accelerates or stalls.
Production is returning, with crews working on the streets of San Francisco, along the North and Central Coasts, throughout the Central Valley and Inland Empire, and across Southern California. Recent successes include “One Battle After Another,” the Bay Area-filmed indie favorite “Josephine,” and series like “The Pitt” and “The Studio.” “Tracker” and “Fallout” have relocated here. The slate keeps growing, with projects including “Rooster” (Stockton), “Margo’s Got Money Troubles” (Fullerton), and Ang Lee’s “Gold Mountain” (Sacramento County). “The Rockford Files” reboot shot its pilot in Georgia; California’s television tax credit helped bring the series home.
These aren’t just titles. They support hundreds of thousands of jobs, generate tax revenue, and sustain businesses far beyond the screen, from restaurants and hotels to equipment vendors, drivers, artists, and tradespeople statewide.
Yet California still loses productions because key gaps remain. The state’s incentives focus largely on principal photography, even though much of the work and small-business activity happens before and after the shoot.
Address the gaps
The first gap is post-production. Editing, visual effects, music and sound design often go to small businesses, but those services qualify for the credit only if at least 75% of filming occurs in California. The talent and infrastructure are here; the incentive is not. Assembly Bill 2319, now headed to the governor, would create a small, standalone post-production tax credit and start to address this gap. Keeping cameras rolling here isn’t enough if the rest of the work happens somewhere else.
The second gap is commercials. California excludes commercials even though they provide steady middle-class work for performers, crews, and small production companies while sustaining union health and pension funds. Illinois reported $703 million in production spending last year, aided by a 35% commercial credit that recently helped land a $1.6 million Walgreens campaign. AB 2403 would have launched a $15 million incentive, allowing producers to recover up to 30% of eligible costs. It got shelved. California must bring commercials, and those jobs, back into frame.
The third gap is above-the-line costs. Writers, directors, producers, and actors account for a significant share of production budgets. Most other states and countries include them in their programs. California does not. That disparity makes it harder to attract productions as they build their creative teams and secure financing.
Now, Senate Bill 122, tucked into the state budget, permanently caps tax credits for all California businesses at 70% or $5 million, whichever is greater. The fallout will reach every sector, with film and television hit especially hard. The added uncertainty makes the state less appealing to studios planning slates years ahead. Without a full exemption from SB 122, a greenlight can quickly turn into a maybe – or worse, a hard pass.
These gaps matter because the industry runs on small businesses and studio projects alike. Riverside County shows that pipeline at work: in the first half of 2026, it issued 111 film permits, supported 222 production days, and generated $6.7 million across reality television, independent films, commercials, and other productions.
Fight to save indies
Independent films are especially mobile, and too many go elsewhere. New York recognized that with a dedicated $100 million annual indie film pool. California can turn that mobility into an advantage, with films like “Superbloom” (Riverside County) and “Whalefall” (Monterey County) creating jobs and revenue statewide. A stronger program for independent films and emerging formats can leverage California’s talent, locations, and small-business base.
The state must also streamline operations. Even after a permit is issued, productions face additional reviews and fees from multiple agencies. California should be the simplest, most dependable place to produce – in one clean take.
With the legislative session ending Aug. 31, keeping California first on the call sheet will soon fall to the next governor, who won’t inherit a crisis but a set of choices.
The foundation is in place. Now the state must align its incentives with how production actually works. California took this industry for granted once. It can’t afford to do so again. The recovery has begun. Don’t cut away now.
James Babbin is a film and audio producer, actor, and a member of Stay In LA, an all-volunteer group working to bring production back to California.
