New Jersey is continuing to gain ground in the film and television industry as California’s long-held dominance shutters, even after significantly expanding its tax incentives.
New data from industry tracker ProdPro shows that California experienced a sharp downturn in the fourth quarter of 2025, according to The Hollywood Reporter. Film and TV projects filming in the state fell 20 percent year-over-year, while production spending dropped 22 percent. Total spending landed at $1.35 billion, a significant drop for a state that has long been the center of the industry.
The decrease comes despite a move by California Governor Gavin Newsom aimed at slowing the burn. In July, Newsom signed legislation that took Califonira’s annual film and television tax credit program from $330 million to $750 million—a more than double increase. The results suggest incentives alone may not be enough to reverse the trend.
By contrast, New Jersey posted one of the strongest gains in the country.
New Jersey’s filming count surged 75 percent in the fourth quarter compared with the same period a year earlier. Production spending in the state also rose 12 percent. The gains come before several major studio developments are even completed.
New Jersey currently offers up to $430 million annually in film and television tax incentives—less than both California and New York. However, studios are consistently choosing the Garden State. Why?
Netflix is in the midst of a $1 billion buildout of its East Coast production hub at the former Fort Monmouth site. Once complete, the project will include 12 soundstages. At the same time, Paramount has signed a 10-year lease at 1888 Studios in Bayonne, while Lionsgate is working on opening Great Point Studios in Newark.
The three projects combine to signal a profound structural shift in New Jersey’s production industry—not just a short-term spike.
And the contrast with California is becoming harder to ignore.
While California, and more specifically Hollywood, remains the top destination overall for film and television production, the state’s declines continue to persist. The Hollywood Reporter reported that filming days in Los Angeles were down 16 percent year-over-year in 2025.
By all accounts, the momentum appears to be shifting to the East Coast.
New York nearly matched California’s total production spending in the fourth quarter, logging $1.07 billion and posting strong year-over-year growth. Illinois also recorded significant gains. The Garden State’s growth comes before some of the most impactful projects are even completed, meaning the influence is expected to continually grow.
New Jersey is no longer positioning itself as Hollywood East—it is becoming a film production base in its own right. If trends continue as they are, the film industry might look completely different by the end of the decade.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.