Hollywood experts have warned that Los Angeles Runs the risk of becoming “the following Detroit“Amid fears that the status of decades of the city will be the capital of television and cinema could come to a rapid end if entertainment productions do not receive immediate tax relief incentives.
In the middle of a strong increase in the number of celebrities who move from angels to places such as Texas and FloridaIndustry workers have now increased alarm on the clear decrease in the number of entertainment projects that are carried out in Hollywood and California.
These fears were the focus of a town hall of April 14 in which legislators and film producers pressed the changes in the fiscal incentive for the entertainment production of the State for up to 35% of the qualified expenses, while the sub -state of Alsese.
“This is not a hyperbole to say that if we do not act, California’s film and television industry will become the next Detroit car, The Hollywood Reporter.
Detroit was seen once as the United States car production center, with three main car manufacturers based there: General Motors, Ford and Chrysler (now known as Stellantis). However, in the 1960s, those companies, moving their factories to the suburbs, leading to a large number of workers, and former Detroit residents, with them.
Now, Stehman believes that the Los Angeles entertainment industry could go in the same way, since he has already lost a great land before his competitors in recent years.
While many entertainment executives live in Los Angeles, all state senators said that this will do little to help the city retain most productions in the city in the city are too high for the middle class worker.
“Studies don’t care where they do the job. They will do it anywhere,” he said at the event. “They are still producing programs. What many of our colleagues simply do not understand is that this is a middle class problem. The studio heads go to bed in Bel-Air pass whatever happens.”
The middle class problem that Allen referred to is the high cost of living in Los Angeles. The average income in the city is currently $ 95,625, but the average house sale price in 2025 is almost 10 times that ($ 965,300).
That number has grown by almost 50% of 10 years ago, when the average income was $ 63,000 and the average house sales price was $ 525,000.
Entertainment workers have long asked California to offer larger fiscal incentives, and more widely notable, with the support of Governor Gavin Newsom, who promised in October 2024 to increase the cinematographic incentives of its current limit of $ 330 million to $ 750 million.
Legislators hope they can maintain the film and television industry by providing fiscal relief. Newsom SB630 bill will also increase the 35% credit while the category of productions they qualify will expand to include animated titles, shorter television programs and some projects without figures.
California is the only production center that does not allow any part of the costs “above the line”, such as salaries, from qualifying for incentives that many promise to look for cheaper options.
The bill was created to help increase what has become a recession in filming in the state. California sacrifices of 20% base credit, which is lower than other regions. For example, New York offers a tax credit or 30% or qualified production expenses. Georgia has a transferable tax credit of 20%, and you can “get an additional 10%” win “by including a logo and a georgia link integrated into the project destination page. Illinois It offers a 30% loan, with additional incentives that include a 15% loan in salaries paid to people living in economically disadvantaged areas.
A recent report of Non -profit Organization Filmla He indicated that the production in location in Los Angeles decreased by 22.4% in Q1 or 2025 compared to the same period in 2024.
These productions included commercials, feature films and television programs, the report that indicates that the fall in the numbers had little to do with the recent Forest fires of California, which largely affected the areas that are rarely used as filming locations.
“The loss of the opportunity to film in no way is compared to the cost of Eaton and Palisades fires in terms of loss of lives, displacement of residents and property damage,” said Integrated Communications Vice President Philip Sokoloski in a statement.
“The fires sent many productions fighting to reprogram sessions and displaced hundreds of workers in their homes. But their impact on local filming levels seems to have been temporary.”
Decroit’s Drat
California residents fear that the exodus of cinematographic productions can be the beginning of the state that loses its charm of celebrities, similar to the decline of car in Detroit.
Now, Detroit is trying to rebuke after decades or problems. The manufacture of cars gave a slowdown when Chrysler and GM declared bankruptcy in 2009. It had a domino effect in the city where automobile manufacturers used thousands of residents. In March 2011, the population of Detroit fell to 713,777, according to the United States Census Office. It was a 25% decrease in 2000 and the lowest level in 100 years.
In 2013, a state review board considered that the city “operational dysfunction”, which means that it could not restructure its finances, which led to the city being declared in bankruptcy of Chapter 9. A few months later, a federal judge approved a bankruptcy plan, eliminating the debt of $ 7 billion.
Los Angeles in Agitation
Losing the influence of the entertainment industry will be a coup for local companies and will make a difficult recovery. Hollywood is known for its great cinematographic productions and TV backlots where iconic series are filmed. At a time when every dollar counts, producers are analyzing how to reduce budgets, and if it means going instead, they are following the money. It is a mutual benefit for filmmakers and the state that wins the production contract.
“This is not a tax raffle,” said state assemblyman Rick Zbur. “This is a work program that keeps people in their homes, keeping people out of the unmployed rolls. If we do not do this, it will cost a lot, much more than these taxes are costing us.”
California competition of other states is a matter of concern, and that is why approveing a better tax relief program could be a correct direction to maintain the entertainment industry in Hollywood.
Celebrities that have moved
Not all celebrities have remained faithful to living in Los Angeles, with several options of Relocate abroad following the electoral victory of President Donald Trump. They include Eva Longoria, Ellen DeGeneres, Richard Gere and Rosie O’Donnell.
Others have chosen to move to another part of the United States, or more friendly states with taxes such as Texas.
Matthew McConaughey relocated his family To an outside of Austin, TX, in 2014, while Glen Powell also returned to the Star Lone state.
Meanwhile, Kelly Clarkson moved the production of her successful program of interviews with Los Angeles to New York City in 2024, while some stars, such as John Goodman, chose to leave California years ago, in their case of relocating in New Orleans.
