Tax incentives and infrastructure investment are driving a geographic realignment in U.S. film production.
MIAMI — A measurable shift in American film production is underway, with New Jersey emerging as one of the fastest-growing hubs in the country while Los Angeles faces continued contraction.
According to recent industry reporting, New Jersey saw a 45 percent increase in filming activity and a 37 percent rise in production spending in the first quarter of 2026. In contrast, the rest of the United States experienced a 10 percent decline in filming volume during the same period, reinforcing concerns about the long-term dominance of traditional production centers.
The growth in New Jersey is not accidental. The state has aggressively expanded its Film and Digital Media Tax Credit Program, offering incentives of up to 35 percent on below-the-line wages. These incentives, combined with proximity to New York City and an expanding studio infrastructure, have positioned New Jersey as a viable alternative for large-scale productions.
Crew employment reflects the shift. Hiring levels have nearly doubled in recent years, rising from approximately 15,000 workers in 2023 to more than 30,000 today. For many in the industry, the move east is less about preference and more about economics.
Los Angeles, meanwhile, continues to face rising production costs, labor pressures, and increased competition from states offering more aggressive incentives. While the city remains the symbolic center of the entertainment industry, its practical dominance is being challenged.
The result is a more decentralized production landscape, where decisions are increasingly driven by financial efficiency rather than geography. As states compete for film dollars, the next decade may redefine what it means to be a “Hollywood production.”
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