Hollywood Insiders on the State of California’s Fight Against Production Flight | Roundtable
Leaders at the DGA, Producers Guild and Stay in LA warn that restoring filming in the Golden State will require many more years of work The post Hollywood Insiders on the State of California’s Fight Against Production Flight | Roundtable appeared first on TheWrap .
A year has passed since California lawmakers boosted the state's production incentive program, leading to a surge in applications from film and TV productions seeking tax breaks. However, the fight to reverse the decline in Hollywood's production work is far from over. Leaders from the Directors Guild of America, Producers Guild of America, and Stay in LA discussed the challenges and upcoming changes during an exclusive video roundtable with TheWrap.
Kate Holguin, producer and head of legislative affairs for Stay in LA, expressed concern about the initial excitement over the tax credit being mistaken for the end goal. She emphasized that while California's investment made the state competitive, incentives only help get California into the conversation. Rebecca Rhine, Western Executive Director for the Directors Guild of America and president of the Entertainment Union Coalition, and Susan Sprung, president/CEO of the Producers Guild, were all involved in pushing for the expanded incentive program, which raised the cap from $330 million to $750 million. The program now includes animation and large-scale competition shows.
Despite a modest 5% increase in production spending in California during the second quarter of 2026, FilmLA reported a 12% decrease in on-location shoot days in Los Angeles compared to the previous year. This trend continued a long-standing decline exacerbated by previous industry strikes. Susan Sprung noted that the full impact of the program's expansion will take several months to show up in the data.
The state's labor unions have been pushing for post-production work incentives, with Assembly Bill 2319 up for a vote in the California State Senate. However, late in June, Senate Bill 122 was passed, limiting the tax credits any business can receive to either $5 million or 70% of its total liability, whichever is greater. This has raised concerns among unions and producers about the state's ability to attract productions and maintain predictability in the tax credit system.
While a deal is expected to address these concerns, it may exclude major studio productions, potentially leading other industries to seek exemptions as well.
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