The decrease comes despite a move by California Governor Gavin Newsom aimed at slowing the burn. In July, Newsom signed legislation that took Califonira\u2019s annual film and television tax credit program from $330 million to $750 million\u2014a more than double increase. The results suggest incentives alone may not be enough to reverse the trend.<\/p>\n
By contrast, New Jersey posted one of the strongest gains in the country.<\/p>\n
New Jersey\u2019s 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.\u00a0<\/p>\n
New Jersey currently offers up to $430 million annually in film and television tax incentives\u2014less than both California and New York. However, studios are consistently choosing the Garden State. Why?<\/p>\n
Netflix is in the midst of a $1 billion buildout<\/a> 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<\/a>, while Lionsgate is working on opening Great Point Studios in Newark<\/a>.\u00a0<\/p>\n The three projects combine to signal a profound structural shift in New Jersey\u2019s production industry\u2014not just a short-term spike.\u00a0<\/p>\n And the contrast with California is becoming harder to ignore.<\/p>\n While California, and more specifically Hollywood, remains the top destination overall for film and television production, the state\u2019s declines continue to persist. The Hollywood Reporter<\/a> reported that filming days in Los Angeles were down 16 percent year-over-year in 2025.<\/p>\n By all accounts, the momentum appears to be shifting to the East Coast.\u00a0<\/p>\n New York nearly matched California\u2019s 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\u2019s growth comes before some of the most impactful projects are even completed, meaning the influence is expected to continually grow.<\/p>\n New Jersey is no longer positioning itself as Hollywood East<\/a>\u2014it 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.<\/p>\n
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