Hollywood Production Slump Becomes Central Issue in California Elections

Hollywood is experiencing a sharp decline in production activity, resulting in significant job losses among on-set crews and white-collar staff. Industry leaders are urging Washington to create a federal production tax credit, arguing that state-level incentives alone cannot stop projects from moving overseas.

Variety Magazine

For three decades producers have chased tax credits offered by other states and foreign jurisdictions. California recently doubled its own production incentive, yet officials acknowledge fiscal constraints that prevent further expansion and have signaled openness to a federal solution.

Variety Magazine

The discussion involves Variety reporter Gene Maddaus, Hollywood unions, California state officials, and political candidates in the Los Angeles mayoral and California gubernatorial races. Unions stress that without additional support the exodus of productions will erode the remaining job base.

Variety Magazine

The production slump has become a flashpoint in the 2026 Los Angeles mayoral contest and the upcoming California governor election, with candidates pressed to outline plans for a federal incentive.

Variety Magazine

As the mayoral and gubernatorial elections approach, lobbying groups intensify outreach to Washington, seeking a federal production tax credit that could keep projects in the United States.

Variety Magazine

• “The key thing here is these trends about production going overseas and tax incentives being offered in other states and other countries like that is not new. That’s been going on for thirty years,” — Gene Maddaus, Variety reporter

Variety Magazine

• “What can what can politicians do? The state of California has already done quite a lot in terms of doubling its own production incentive. You could say, ‘Well, that hasn’t been enough,’ but there is also a limit to what California even can do. And so that’s a lot of the reason people are turning to to Washington for a federal incentive,” — Gene Maddaus

Variety Magazine