Film production falls in LA: tax credits give hope
'We are on a pause, and we have no choice but to work three jobs to survive,' Juan Escobedo, founding artist of the East Los Angeles Film Festival
Film and television production in Los Angeles fell 13.2% in the third quarter of 2025, between July and September, a worrying downward trend that has been going on for several years, and that means thousands of lost jobs.
According to FilmLA, the office of the city and county of Los Angeles that issues film permits, said that 4,300 film, television and commercial shoots were recorded in the third quarter of the year.
He estimated that the decline is related to the drastic collapse of reality television programs, with 20.7% less against a slight increase of 9.7% for films.
However, a ray of hope is seen on the horizon for Hollywood, based on the new expansion of tax credits for film and television in California.
An industry on pause
La Opinion spoke with Juan Escobedo, founder of the East Los Angeles Film Festival and who is also an actor, writer and director, about the current situation of film production.
“Cinema in Los Angeles is reinventing itself, it is not down. Cinema is never going to die in Los Angeles. The ghosts of cinema are not going to let that happen,” said the artist.
“The thing about productions being taken out of the country has always past. There are countries that adore filmmakers and give them incentives to go there and produce. This is the case in Russia, and other countries in Eastern Europe and India, where they are very good at special effects and cartoons.”
In Escobedo's opinion, due to technology, streaming, and artificial intelligence, Hollywood cinema is reinventing itself.
“On the other hand, we are experiencing a kind of gentrification in the film industry. We receive films from all over the world. Some are good, some are bad; and we also see a lack of creativity.”
So – he believes – that in some way, cinema in Los Angeles is on pause, watching itself reinvent itself.
“Those of us who have that passion, without much money and even with a dollar they give us, we look for ways to get a project off the ground.”
He said that tax incentives help, but they have also made the grant application processes simpler for artists to write.
“We got Community Partners to change the language so that the application process was simpler and more straightforward for artists.”
But yes – he says – he has had to give work to people who have been left unemployed by commercial film productions in Los Angeles.
“We can’t pay them much with the grants we receive, but they need it and they accept. The current reality is that those of us who are dedicated to film production have to work three jobs to survive.”
Figures to worry about
Brenda Victoria Castillo, president of the National Hispanic Media Coalition, said that between 2022 and 2024, the Motion Picture Industry Health and Pension Plan, which covers production crew members, reported a loss of 35 million work hours, equivalent to 17,000 jobs.
“Entertainment industry groups have reported a 40% drop in production. Recently, a report from FilmLA revealed that soundstage occupancy, historically around 90%, has fallen to 63%, the lowest level ever recorded.”
Add to that, he said, years of productions leaving the state, along with the industry shutdown due to the pandemic and labor strikes, and the livelihoods of many creatives, especially those from diverse backgrounds, have been at risk.
“Creatives and storytellers from underrepresented backgrounds are often the first to be excluded when budgets tighten or work disappears.”
A Silver Lining
In late May, Los Angeles Mayor Karen Bass issued an executive order to support local television and film jobs by making it easier for independent studios and producers to shoot movies, TV shows, and commercials in Los Angeles.
Mayor Bass’s directive reduces costs and streamlines city processes for filming on location, as well as expands access to iconic city locations like the Central Library, the Port of Los Angeles, and Griffith Observatory to make the city more welcoming and promote local filmmaking.
“The City is taking bold steps to support our long-standing industry,” said Mayor Bass.
“Keeping entertainment production in Los Angeles means keeping good-paying jobs, and that’s what we’re fighting for. I’m working with Council Member Adrin Nazarian to ensure Los Angeles remains the best place for film and television production.as we continue to push for the expansion of the California production tax credit. The working people of Los Angeles are counting on us.”
Tax Incentives
The California Film and Television Tax Credit program, recently renewed by Governor Gavin Newsom, totals $750 million.
The first projects to receive funding under the new program were approved in August. Among them are 18 television series planned for the Los Angeles metropolitan area.
Since this program was created, it has generated tens of billions of dollars in investment and created nearly 200,000 jobs.
“The tax incentive program is a lifeline to keep one of California’s oldest industries rooted in the state and safeguard the progress we have fought for in diversity, equity, and inclusion efforts,” Castillo said.

