The year 2025 has been rough for Los Angeles. Wildfires have ravaged the city, claiming at least 29 lives and destroying thousands of homes. At the same time, LA film production is struggling. For years, filmmakers have increasingly chosen Atlanta, London, and Toronto over Hollywood.
Lower costs and better tax incentives have drawn major productions away from the city that built the entertainment industry. Now, with the wildfires causing further devastation, many in the industry are demanding action to bring film jobs back to LA.
LA Film Production Declines Amid Economic Challenges
Hollywood has been losing ground for years. The impact of COVID-19, labor strikes, and a cooling streaming market has forced producers to cut costs. Many have found it easier to move productions out of LA entirely. According to production tracker ProdPro, film and TV production in the U.S. fell by 26% last year compared to pre-strike levels in 2022.
Meanwhile, Australia and New Zealand saw a 14% increase, and Canada recorded a 2.8% jump. Even the UK experienced modest growth.
The shift is clear. Take the upcoming Red Hot Chili Peppers biopic. The band is practically a symbol of Los Angeles, yet their story is being filmed in Atlanta. The reason? Georgia offers generous tax breaks, making it far cheaper than shooting in LA. This is the reality for many productions today.
Hollywood’s Response
Major studios and streaming platforms have contributed over $70 million to wildfire relief efforts. Awards season events, typically known for glamour, have been transformed into fundraisers to help rebuild communities. While these donations are significant, many in the industry believe they are not enough.
The real problem, they argue, is that production companies continue taking jobs elsewhere.
For studios, the bottom line matters more than keeping jobs in one city. Without better incentives, they will continue choosing more affordable locations.
Star Power Pushes for Change
Big-name actors have the ability to sway studio decisions. Vin Diesel, for example, played a key role in keeping the latest Fast and Furious movie in Los Angeles. Other celebrities are using their influence in different ways. A “Stay in LA” petition has gained nearly 20,000 signatures, with actors like Keanu Reeves, Zooey Deschanel, and Kevin Bacon backing the effort.
Their goal is to convince California’s leaders to temporarily remove the cap on production tax incentives for LA County, making it financially viable for studios to stay.
New Policies to Save LA Film Production
Filmmakers like Sarah Adina Smith are calling on the state to use emergency powers to boost tax credits for the next three years. Their plan is simple: make LA more affordable for production and help the local economy recover. They also want studios to commit to increasing LA-based productions by at least 10%.
However, this increase still needs legislative approval and may not take effect until later this year. Newsom argues that these incentives benefit the state, pointing out that California’s film tax program has already generated over $26 billion in economic activity and supported nearly 200,000 jobs.
If approved, the new tax credit would be one of the most generous in the country. Only Georgia offers a more competitive program, as it has no annual cap on production incentives. But supporters of “Stay in LA” argue that California must act immediately, not months down the line.