Cost Disparity:: Lowe stated it's cheaper to fly 100 American crew members to Ireland for his show "The Floor" than to film locally in Los Angeles.
Tax Incentives:: He pointed out that locations like Ireland offer significant tax credits (up to 40%), making them financially more attractive than California, which lacks comparable incentives.
Industry Impact:: Lowe and fellow actor Adam Scott noted that Los Angeles sound stages are increasingly empty, a stark contrast to the past, indicating a significant shift in production activity away from the state.
Call for Change:: Lowe expressed frustration, suggesting California and LA leadership should be held accountable for letting the situation deteriorate, calling the loss of productions "criminal."
Why this matters:: This trend impacts local jobs, ancillary businesses, and California's economy. It challenges Hollywood's long-standing dominance as the primary center for film and TV production.
The phenomenon of 'runaway production' isn't new, but Rob Lowe's recent comments bring renewed attention to the challenges California faces in retaining film and television projects. The core issue revolves around financial viability. States like Georgia, New York, and countries such as Canada, the UK, and Ireland offer substantial tax credits and rebates, significantly lowering production budgets.
Lowe highlighted that even established shows might relocate if produced today, speculating that "Parks and Recreation" could end up filming in Budapest or London. This shift is driven purely by economics, as he noted, "It’s just tax, economics of it all." Data supports this trend; while the US remains a leader in production spending ($14.5 billion), this figure was down 26% in 2025 compared to 2022, according to ProdPro’s Outlook Report.
Who This Affects Most: This situation directly impacts California-based film crews (camera operators, lighting technicians, set designers, etc.), actors who prefer to work locally, and numerous support businesses, from catering services to equipment rental houses. The reduced local production activity leads to job instability and economic strain within the region.
How to Prepare: Industry professionals in California may need to consider opportunities in other production hubs or adapt to potentially more frequent travel for work. For California's leadership, the situation underscores the urgency to revise and enhance tax incentive programs to remain competitive.
Interestingly, despite the criticism, efforts are underway. California legislators have introduced bills to expand the state's tax credit program. Furthermore, the California Film Commission recently approved a record number of 51 films for its existing tax incentives in a single application window, signaling an ongoing effort to attract and retain productions.
Why is filming outside California often cheaper?
Many other states and countries offer more substantial tax credits, rebates, and other financial incentives that significantly reduce the overall cost of production compared to California.
Is California taking steps to address this issue?
Yes, there are ongoing legislative efforts to expand California's film and television tax credit program, and the state recently approved a large batch of projects for existing incentives.
High production costs and less competitive tax incentives are causing film and TV projects to leave California.
This 'runaway production' impacts local jobs and the state's economy.
While California is taking steps to improve its incentives, it faces stiff competition from other locations globally.
The future landscape of film production may see continued geographic diversification.
The economics of filmmaking are clearly shifting. Will California be able to adapt its policies effectively to compete with global production hubs and bring more filming back home? Let us know your thoughts!
*Share this article with others who need to stay ahead of this trend!*
⚠ Disclaimer: Yanuki provides article summaries and links for reference only. Yanuki does not endorse, verify, or guarantee the accuracy of third-party sources. Please review original sources and verify information independently. Managed by the Yanuki Data Engine. Full Disclaimer