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A major factor contributing to the changing landscape of film production is the high cost of doing business in California, where expenses are notoriously elevated. From transportation to catering, the financial burden on productions has continued to grow. For example, filming permits from Film LA recently increased their rates and the cost of securing locations is significantly higher than in other states.
California's tax incentive programs have also come under scrutiny. In 2020, the state introduced a new tax credit program aimed at attracting productions; however, the available funding has proven insufficient to meet demand. According to reports, California lost 77% of production spending in the last year, with many projects opting to film elsewhere due to the lack of support.