New Jersey Benefits as Hollywood Production Moves Out

While Hollywood is facing a decline in film and TV production, New Jersey is seizing the opportunity. With many productions leaving California for more affordable locations, the Garden State is stepping up to attract filmmakers.

Studios that once valued being near Hollywood are now seeking out tax incentives, which has led to a shift towards other regions like Canada, England, Georgia, Louisiana, and notably, New Jersey.

In 2022, New Jersey collected almost $1 billion in production funding from 17 large-budget film and TV projects, almost double its earnings from the year before, according to a report.

The state’s appeal lies in its aggressive incentives, which can provide up to 35% in tax credits on local expenditures. Studios that agree to long-term filming contracts—up to 45% tax credits—are particularly sought after.

Major players such as Lionsgate, Netflix, and Paramount are capitalizing on these offers, reshaping production dynamics.

For example, Lionsgate shifted its series “Power: Origins” from New York to New Jersey, highlighting a trend of relocating projects for financial reasons rather than geographic ones. Similarly, Netflix has filmed nearly 20 projects in New Jersey in the past year alone, including a significant sequel, which benefited from around $60 million in tax credits.

Additionally, Netflix is investing over $1 billion in a production campus at Fort Monmouth, signaling its commitment to the state.

As studios invest in new infrastructures like sound stages outside of Los Angeles, the chance of them returning to California seems slim, even if demand stabilizes.

Other regions that once thrived, such as Georgia, are now feeling the pinch. Production spending there dropped by 31% last year as projects relocated to countries with more attractive subsidies.

As Netflix co-CEO Ted Sarandos put it, “It’s great when the circus comes to town, but then they pack up and leave with nothing.”

For Los Angeles, the long-term effects are becoming clearer. The drop in filming translates to fewer jobs for local crews and businesses that have traditionally thrived on Hollywood productions.

California, once the film capital of the world, is now facing tough competition from states that offer substantial financial incentives, with New Jersey committing $430 million annually in film benefits until 2049. This highlights how aggressively states are working to secure long-standing production opportunities at California’s expense.