In the world of film and television, tax credits aren’t just accounting details—they’re shaping where and how Hollywood works. As California and Georgia go head-to-head in a high-stakes production showdown, the industry is watching closely. The outcome could redefine the power centers of entertainment for years to come.
How We Got Here
California is the birthplace of Hollywood, with its iconic studios, perfect weather, and historic soundstages. But in recent years, production has increasingly flown east—especially to Georgia, which has become a production powerhouse thanks to its generous, uncapped film tax incentives.
Georgia’s film industry is booming. From Stranger Things to Black Panther, dozens of blockbuster films and prestige TV shows are made in Atlanta and its surrounding areas. In 2022 alone, the state reported over $4.4 billion in direct spending from film and television production—more than any other U.S. state.
Meanwhile, California, despite its deep industry roots, has seen a decline in big-budget shoots. Its current tax credit program—capped at $330 million annually—is competitive but limited. Without the flexibility to offer as much as Georgia, producers often chase cost savings across state lines.
Newsom’s New Plan
In June 2025, Governor Gavin Newsom proposed a major expansion: a $750 million boost to California’s film tax credit program, with a focus on revitalizing in-state production and preventing further “runaway productions.”
The plan is ambitious—but not without controversy. It arrives at a time when California is facing a $45 billion budget shortfall, and some lawmakers argue that the funds could be better allocated elsewhere. Still, Newsom argues the move is necessary to keep jobs, talent, and cultural capital in the Golden State.
“If we want to keep the film industry in California, we have to fight for it,” Newsom stated in a recent press release.
Georgia’s Winning Formula
Why has Georgia been so successful? Three key reasons:
- Uncapped Incentives: Unlike California, Georgia offers unlimited credits—up to 30% of production costs.
- Robust Infrastructure: The state has built massive studio spaces (like Trilith and Tyler Perry Studios) with world-class equipment and experienced local crews.
- Diverse Locations: Georgia can double for almost anywhere—urban, rural, jungle, or sci-fi fantasy.
The result? Georgia has become not just a filming destination, but a permanent home for production companies and post-production facilities.
The Broader Economic Impact
The stakes aren’t just about movies—they’re about jobs, tourism, and economic ecosystems:
- Every major film set hires hundreds of locals—from camera crews and carpenters to caterers and costume designers.
- Production boosts local economies through housing, transportation, and hospitality.
- A vibrant industry attracts long-term investments, like studio construction and film schools.
A loss for California isn’t just symbolic. It’s financial. And Georgia’s gain could signal a permanent shift in the industry’s center of gravity.
What It Means for Actors and Creatives
For working actors, the shift affects audition locations, agency reach, and networking opportunities. Georgia now has more casting calls than ever, and many LA-based actors are relocating—or at least bi-coastal. Meanwhile, California still offers proximity to the heart of representation, writers’ rooms, and top-tier education.
This east-vs-west battle is a reminder that where you live can impact your career trajectory, especially as incentives reshape the industry map.
Final Take
The race between California and Georgia is more than a tax fight—it’s a referendum on the future of American filmmaking. Whether Newsom’s proposed boost passes or not, one thing is clear: Hollywood is no longer bound by one zip code. And for talent, that opens doors across the country—but also raises big questions about where to plant roots.
