California Can’t Keep Business in Hollywood as Other States, Countries Swoop In

Photo by Morgan Lane on Unsplash

California Can’t Keep Business in Hollywood as Other States, Countries Swoop In

By Movieguide® Contributor

Despite California Gov. Newsom’s best efforts to provide in-state production incentives, film crews are lured to cheaper locations in faraway places.

Georgia, New York, New Jersey, other countries and even Kentucky are taking a lot of LA’s business.

Upcoming crime drama DEAD MAN’S WIRE and THE REVISIONIST, with Dustin Hoffman, will soon shoot in Louisville, Kentucky. The city plans to spend $75 million to redevelop the historic Louisville Gardens into a studio complex. Kentucky has a 30-35% tax credit per project, with a cap of $10 million.

“We have had a continuous uptick in interest in production in our region because of this generous incentive,” said Louisville film commissioner Soozie Eastman.

Nashville, Tennessee, is also having rapid film industry growth. The local industry has increased by 126% over the past decade. Nashville’s recently been nicknamed “The Hollywood of The South.”

Texas is giving that title a run for its money, though, as Dallas’ South Side studios opened three new soundstages in January. The largest spans 20,000 square feet. Much of THE CHOSEN series films on a 22,000 square foot soundstage in Midlothian, Texas. The state is considering passing the Film Tax Incentive Bill SB 22 to boost attraction.

North Carolina is also expecting to take on some film business. The state offers a 25% film tax rebate.

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“We’re ready for the big streamers to come and shoot at the studio when our stages are finished, and if things like COVID hits, or a big strike hits, we’re ready to do concerts or weddings. We’re ready to do events. All those things are on the table,” said White Lightning Studios owner Robert Rippberger, whose complex is located in Spring Hope, North Carolina.

Dark Horse Stages CEO Kirk Englebright opened two new soundstages in Wilmington, North Carolina, last November. YouTube star MrBeast recently filmed at the complex, and Englebright is hopeful that the studio will attract more Hollywood business.

“Conversations are taking place. There’s some activity going on. It didn’t help anything with the wildfires in LA. But I’m optimistic for the industry,” he said.

The U.K. also has a hat in the ring. London’s biggest film complex, Eastbrook Studios, is welcoming Hollywood productions as the U.K. just introduced a 40% tax incentive available until 2034.

“The sector has huge potential for further economic growth, and the government is ambitious for its future,” said Culture Secretary Lisa Nandy.

Canada isn’t too far away, and it offers generous tax credits and currency savings. A $250 million studio is opening in Toronto, under Hackman Capital and the MBS Group.

Meanwhile, Gov. Newsom has pledged to increase the California film and TV tax incentive from $330 million to $750 million a year.

The total number of California shoot days is dropping every year. They went up in 2021 and 2022 after dropping very low during 2020, but they dropped sharply again in 2023. In 2024, they were close to 2020’s COVID levels. Now with film complexes popping up left and right, LA’s got a big fight ahead if it wants to keep business in town.

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