Hollywood has long been considered the heart of the film industry — a dream factory where iconic films and television shows shape culture and history.
With countless studios and creative opportunities, California has been a haven for filmmakers and entertainment workers alike.
Due to rising production costs and more competitive tax incentives elsewhere, California — even Hollywood — is becoming too expensive for many productions to stay.
“Why is Hollywood leaving? Because money! It is the tax incentives that are available in states like Georgia are much greater than the tax incentives for producing anything in California,” said Billy Grundfest, Writer and Producer of ‘Mad About You.’
Santa Clarita, known for its versatile filming locations and scenic ranches, has become a more affordable alternative to central L.A. The influx of productions has benefited the local economy, bringing foot traffic and revenue to nearby businesses.
“Production is very important for our local economy,” said Evan Thompson, an economic development associate for the city of Santa Clarita’s Film Office.”They benefit everyone from homeowners to businesses to mom-and-pop shops,” said Thompson.
“So, in a typical year, when things are going really well, that could mean over $30 million dollars in economic impact for the city of Santa Clarita alone,” said Thompson.
Still, even Santa Clarita is starting to feel the pressure. Production companies are looking elsewhere — to states like Georgia and Texas, where generous tax breaks and lower costs have created booming film economies.
These states are rolling out the red carpet, making it harder for California to compete.
Hollywood is the hotspot for movies and TV. But with these current changes and shifts to different locations, its future is uncertain.
