California is facing a continued decline in film and television production as studios increasingly relocate projects to other regions offering more advantageous financial incentives, according to Alastair Boucaut, executive vice president of Asset Management at Hackman Capital Partners. Boucaut cites the state's tax credit program as a central factor driving the exodus, amid changing economics in the content production industry.

Boucaut, who manages studio assets across five countries, explains that the shifting landscape in content financing is prompting producers to prioritize return on investment more heavily than in previous years. During the height of the streaming wars, platform providers focused on volume, often prioritizing output over financial returns. However, with market consolidation, studios are now scrutinizing every dollar spent, making robust tax incentives critical in production location decisions.

“Only a strong tax credit program can return 30% to 50% of qualifying costs on a large production budget, which can fundamentally alter the production’s financial landscape,” Boucaut noted. He highlighted how countries such as the UK, Ireland, and Canada have long established generous, stable tax credit programs, positioning them as preferred destinations for many productions. These regions’ programs, combined with consistent policy frameworks, provide predictability that studios require when locking in budgets years in advance.

Boucaut provided an example of a four-year agreement with a production company filming a live-audience game show in Ireland. Despite the significant costs involved in transporting and accommodating a large cast and crew from the United States, the overall expenses remained lower than producing the show in California. Similarly, Hackman Capital Partners’ studio facilities in Vancouver, the UK, and Ireland currently report full or strong occupancy driven by this demand.

California expanded its film and TV tax credit program in 2025, featuring a headline 30% credit rate. Nevertheless, industry insiders describe eligibility requirements as overly restrictive, particularly the exclusion of above-the-line talent costs—such as salaries for lead actors, writers, and directors—from qualifying expenses. Given that such talent often comprises a substantial proportion of a production budget, this limitation significantly diminishes the credit’s overall value.

Boucaut attributed this exclusion to political sensitivities, with policymakers reluctant to appear as subsidizing celebrity salaries. The resultant program structure, he argues, undermines California’s competitiveness relative to other regions that include or more broadly cover above-the-line costs in their incentives.

Despite the challenges, Boucaut expressed optimism about the industry’s long-term prospects in Los Angeles, citing existing infrastructure, a concentrated talent pool, and production company presence. The key, he argued, lies in establishing a tax credit program that is sufficiently generous, simple to navigate, and stable enough to allow producers to plan with confidence.

“The studio business can return to LA,” Boucaut said. “What’s missing is a policy in California that works. Productions will come back when it becomes financially rational to do so. The question is whether the state will act before the window closes.”

His comments reflect growing concerns within the entertainment industry as California competes with other global markets leveraging more favorable financial incentives in an increasingly cost-conscious era.