LA Film Production Drops 6.2% in Q2 2025 Despite Expanded Tax Credits

The numbers tell a sobering story. On-location film and television production in Greater Los Angeles dropped 6.2 percent in the second quarter of 2025, marking another chapter in what has become a persistent narrative of production decline in the entertainment capital of the world. But for the first time in months, there’s genuine reason for optimism despite the severe LA film production drop.

FilmLA’s latest quarterly report, released yesterday, reveals the complex reality facing California’s signature industry. While overall shoot days fell to 5,394 in Q2 2025 compared to the same period last year, the long-awaited modernization of the California Film & Television Tax Credit Program has finally become reality – and it’s more substantial than many industry observers expected. We already reported about the Q2 numbers from last year exactly a year ago, and they didn’t look great either.

The scale of the challenge

The production decline isn’t hitting all sectors equally. Feature film production took the hardest blow, generating just 553 shoot days in Q2—a devastating 21.4 percent drop from the previous year. What’s particularly striking is that all feature films shot locally during this period were independent productions, including titles like Animals, I’ll Take the Hamm, and Whalefall. The absence of major studio features speaks to the fundamental economics driving production elsewhere.

Commercial production fared even worse on a relative basis, declining 15.3 percent to 692 shoot days. Without any form of business incentive to keep production local, this category has become a bellwether for California’s competitiveness – and the news isn’t encouraging. Commercial production now sits 38.3 percent below its five-year average, making it the weakest of FilmLA’s major tracked categories.

Television: a bright spot in dark times

Television production provided the quarter’s only significant bright spot, with 2,224 shoot days representing a 17.0 percent year-over-year increase. This surge brought more television production to LA-area communities than FilmLA has recorded since early 2024, driven primarily by gains in TV dramas and reality programming.

TV dramas posted 782 shoot days – their highest levels since the pre-strike period of Q4 2022. Productions included established series like High Potential Season 2 for ABC, 9-1-1 Season 8 for Fox, and The Lincoln Lawyer Season 4 for Netflix, alongside new projects like FX’s Untitled Snowfall Spinoff and Peacock’s The Burbs.

Reality television reached 1,124 shoot days, its strongest showing since Q1 2024. The roster included veteran productions like American Idol, 90 Day Fiancé, and Vanderpump Rules, demonstrating the format’s continued appeal to networks seeking cost-effective content with proven audience engagement.

The tax credit transformation

The passage of AB1138 represents the most significant expansion of California’s film incentives in years. The legislation – which we reported about recently – increases individual project credits from 20 to 35 percent while raising the per-production cap from $100 million to $120 million. Perhaps most importantly for independent filmmakers, total program funding for indie films tripled from $26 million to $75 million.

The California Film Commission recently approved 48 new feature projects under the expanded program, including five major studio films and six independently produced projects with budgets exceeding $10 million. This represents a meaningful shift from the current landscape where only independent features were shooting locally.

FilmLA President Paul Audley’s enthusiasm is palpable: “FilmLA is elated with the news of the passage of the California Film & Television Tax Credit Program by the California State Legislature.” But his comments also acknowledge the uphill battle ahead, noting there’s “work ahead to bring Los Angeles-area production back to its full potential.”

The broader context

The production challenges extend beyond simple economics. FilmLA’s “Other” category, encompassing everything from student films to music videos, declined 17.3 percent compared to the previous year and sits 29.8 percent below its five-year average. This broad-based weakness suggests systemic issues beyond the major studio and network productions that capture most industry attention.

The report notes that only 177 shoot days across all categories in Q2 were incentivized through existing tax credit programs—roughly 3.3 percent of total production. This low utilization rate underscores both the previous program’s limitations and the potential impact of the expanded credits.

Looking forward

The timing of the tax credit expansion couldn’t be more critical. After FilmLA publicly called for a “vast expansion” of the program last October, joining other organizations in sounding alarms over unprecedented production losses, the legislative response has been swift and substantial. The new credits become refundable beginning with the 2025-26 fiscal year, providing immediate cash flow benefits for qualifying productions.

California’s creative community has reason for cautious optimism, but the fundamental competitive pressures remain unchanged. Other states and countries continue to offer aggressive incentives, and the global production landscape has permanently shifted during the past several years of industry upheaval.

The true test will come in the coming quarters as the expanded tax credits take effect and newly approved projects begin production. For an industry that has watched too much work migrate elsewhere, the stakes couldn’t be higher. California’s creative class might be celebrating today, but tomorrow’s production schedules will determine whether this legislative victory translates into the sustained recovery the industry desperately needs.

If you want to dive into the numbers by yourself, be sure to check out the entire Q2 2025 report by FilmLA here.

Are you based in California and working in the film industry there? Are you affected by the LA film production drop? Please tell us about your observations in the comments below!