Film Production Booms in New Jersey and Illinois

The Hollywood production landscape in 2026 is undergoing a significant shift, with states like New Jersey and Illinois emerging as major winners in the battle for film and TV shoots. Recent industry reports highlight California’s ongoing struggles—despite aggressive efforts to retain dominance—while rival states capitalize on generous film incentives US 2026, lower costs, and strategic investments in infrastructure.

California’s Decline: Stats Paint a Stark Picture

According to FilmLA’s latest reports, on-location production in greater Los Angeles hit historic lows in 2025, totaling just 19,694 shoot days—a 16.1% drop from 2024 and the lowest non-pandemic figure since records began. The fourth quarter of 2025 saw 4,625 shoot days, up modestly 5.6% from the prior quarter but still down 21.1% year-over-year. Feature films declined 19.7% in Q4, while TV categories (especially dramas) fell sharply, remaining 50.1% below five-year averages.

ProdPro data from Q4 2025 shows California experienced a 20% decrease in movie and TV projects filming in-state year-over-year, with production spending down 22%. Even after Gov. Gavin Newsom doubled the California Film and Television Tax Credit Program to $750 million annually (from $330 million) starting in 2025, the state could lose over $1 billion in economic activity to competitors. Incentives have attracted dozens of projects (119 awarded since mid-2025, including major titles like reboots and series), but impacts are delayed—many won’t start filming until 2026.

High labor costs, complex regulations across municipalities, and competition from global and domestic hubs continue to drive “runaway production” away from the Golden State.

Why New Jersey and Illinois Are Surging

States offering competitive US film incentives 2026 are seeing explosive growth:

• New Jersey — Filming count surged 75% year-over-year in Q4 2025, with production spend up 12%. The state extended its Film and Digital Media Tax Credit Program through 2049, offering up to 40% transferable credits for studio partners (base 30-35% on qualified expenses, with bonuses for diversity, hiring, and non-NYC metro filming). Major developments include Netflix breaking ground on a production facility, Paramount leasing space at 1888 Studios, and Lionsgate building in Newark. Proximity to New York City, diverse locations, and strong crew talent make it an East Coast powerhouse.
• Illinois — Film count jumped 70% and spend rose 46% in Q4 2025. The state’s Film Production Services Tax Credit (extended to 2039) provides up to 30-35% on qualified expenditures, with bonuses for local labor, non-resident positions, and disadvantaged-area hiring. Home to long-running hits like Chicago Fire, Chicago P.D., Chicago Med, and The Bear, Illinois benefits from established infrastructure and growing extras work.

Other states like New York (up 31% in projects) and Georgia (post-production bonuses starting 2026) add pressure, but New Jersey and Illinois stand out for rapid gains amid California’s dip.

Ties to Movie Releases and Future Implications

This production migration influences on-screen content and the careers of stars, crew, and filmmakers. Films and series shot elsewhere often incorporate local flavors—think Chicago-set procedurals or New Jersey’s urban/suburban versatility—while reducing budgets for high-profile talent. Stars like those in reboots (Baywatch returning via California incentives) or sequels may film closer to home bases, but many projects prioritize cost savings over traditional Hollywood lots.

For the industry, this shift means:

• More decentralized Hollywood — Fewer shoots in L.A. could dilute the “Hollywood ecosystem” of post-production, VFX, and networking.
• Job impacts — California risks losing thousands of behind-the-scenes roles, though incentives aim to create ~15,000 jobs from recent awards.
• 2026 outlook — Early signs of rebound in California (Q4 uptick tied to credits) exist, but if rivals maintain momentum, expect continued diversification. Global hunts for the best deals will intensify.

The film incentives US 2026 race is fiercer than ever—producers chase savings, while states vie for economic boosts. California remains the symbolic home of Hollywood, but New Jersey, Illinois, and others are proving that incentives, infrastructure, and opportunity can rewrite the map.

Stay ahead with the latest Hollywood production news 2026, box office insights, and industry trends at www.clickusanews.com. What do you think—can California reclaim its throne, or is the shift permanent? Share your thoughts below!

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