Los Angeles on-location filming falls again as tax credits shift the production mix

On-location film and television production in Greater Los Angeles slipped again in the third quarter of 2026, according to a FilmLA research update that was distributed to industry and local government partners. The most recent set of regional shoot day figures show continuing weakness in permitted, on-street production, even as California's expanded film and television tax credit program has begun to tilt the composition of work toward projects that receive state incentives.

What the data show

FilmLA reported that Greater Los Angeles recorded 4,171 on-location shoot days for the quarter that ended September 30. That tally represents a 4.8 percent decline from the same period a year earlier and remains well below the five year average for the market. At the same time, FilmLA found that projects participating in the state tax credit program accounted for roughly 40 percent of scripted on-location shoot days during the quarter, nearly double their share from a year earlier.

Those two trends together present an uneven picture. The overall drop in shoot days indicates fewer productions are choosing to stage permitted location work in Los Angeles, while the concentration of scripted activity among incentive recipients suggests the new tax credit funding is helping a narrower set of shows and films secure local shoots.

Why the numbers matter for Hollywood and Los Angeles

Los Angeles has long relied on location production to feed a broad set of businesses and jobs, from grips and camera crews to local vendors, restaurants and hospitality. A sustained decline in on-location activity can reduce local employment opportunities and erode the supply chain that supports the region's production ecosystem. The FilmLA report underscores that the statewide tax credit expansion is starting to nudge more incentive-winning projects back to California, but that progress is concentrated among recipients and has not yet restored the broader baseline of location shooting.

Industry observers say the mix of factors behind the decline includes the lingering effects of the 2023 labor strikes, which changed production timelines and budgets, the increasing globalization of shooting locations where studios find lower costs or tax advantages, and a rebalancing of content budgets toward unscripted or studio-stage work that FilmLA does not capture in the same way as permitted location days.

What officials and industry players are saying

California policymakers who supported the tax credit expansion pitched the program as a way to reverse an exodus of film and television production, and the latest FilmLA snapshot offers early evidence that tax-funded projects are returning to Greater Los Angeles. However, municipal and industry leaders caution that incentive dollars are only one element of a larger operating environment, which also includes costs for physical production, availability of skilled local labor, sound stage capacity and the relative attractiveness of other states and countries now competing for shoots.

Local film office executives emphasize that permit data do not capture stage-based production or work on private lots that do not require FilmLA permits, a limitation that can understate the total volume of production tied to Los Angeles. Nevertheless, the permitted location day decline is a useful metric for understanding what is happening in public spaces, neighborhoods and city streets where a large share of the region's spending takes place.

Near term implications

For Los Angeles businesses that rely on location shoots, the immediate concern is that a continued shortfall in permitted shoot days will prolong pressure on earnings and hiring. For policymakers, the results reinforce that while tax credits can drive select projects back into the state, additional measures may be required to broaden the appeal to a wider range of productions. Those measures could include faster permitting, localized incentives, investments in workforce development, or strategies to expand stage and infrastructure capacity.

For studios and producers, the report is a reminder that incentive-driven returns are not automatic. Producers must weigh tax credits against other location costs and logistical considerations. The FilmLA findings suggest that some productions are choosing to claim credits but still staging key elements outside Los Angeles, or they are shifting to studio-based workflows that reduce the need for on-location permits.

Looking ahead

FilmLA and local officials will track the effect of the incentive program in the coming quarters as projects awarded credits in recent rounds ramp up and begin principal photography. The projects that choose Los Angeles will likely show up in FilmLA's next two quarterly reports, offering a clearer picture of whether the incentive expansion can broaden its impact beyond a concentrated set of scripted shows.

Until then, the region faces a transitional period in which tax-credit winners provide encouraging signs, but overall location activity remains below historic norms. For a city whose identity and local economy are tightly bound to on-street filmmaking, restoring a more diverse mix of production will be an urgent policy and industry priority.