California’s Incentive Surge Draws ‘Fallout,’ ‘Mr. & Mrs. Smith, and 14 More Shows as State Fights to Regain Production Ground

California’s aggressive push to rebuild its production base is beginning to crystallize, with the state awarding $313 million in tax credits to 17 television projects — a slate led by high-profile titles like Fallout, Mr. & Mrs. Smith, The Night Agent, Forever and a newly revived Baywatch. The latest awards, announced by the California Film Commission, are projected to drive $1.2 billion into the state economy and represent one of the largest TV incentive rounds since Gov. Gavin Newsom expanded the program earlier this year.

Amazon’s Fallout topped the list with a $42 million allocation for season three, followed closely by Mr. & Mrs. Smith ($31.9 million) and a fourth season of Netflix’s The Night Agent ($31.5 million). The package also includes a new season of Forever and a 12-episode Baywatch reboot — all part of a wider migration back to California as enhanced credits of up to 35%–40% reshape the state’s competitive footing.

“This is exactly what the expansion was designed to do,” said Gov. Gavin Newsom. “When we make smart investments like our film tax credit, we’re keeping talent here at home, supporting good-paying union jobs, and strengthening an industry that defines the California brand.”

A Bigger Bet in Sacramento

The incentive shift follows a July decision to more than double California’s annual tax-credit pool from $330 million to $750 million — the largest increase in program history. “We put our feet up, we took things for granted,” Newsom said when signing the bill. “This is about correcting course.”

And it’s not just the headline titles moving west: collectively, the 17 shows will employ more than 5,000 cast and crew, plus nearly 36,000 background actors, across more than 1,000 filming days statewide. For below-the-line workers, who have endured years of contraction across scripted TV, the significance is hard to overstate.

California Film Commission director Colleen Bell called the awards “a clear signal” that the state intends to keep production “where it belongs,” adding that expanded categories — including animation and large-scale competition shows — will open in early 2026.

But the Big Picture Is More Complicated

The latest round arrives as on-location production in California shows mixed signals. According to a new ProdPro report, the state saw a 10 percent increase in shoot volume in Q3 year-over-year. But despite the rise in activity, overall production spend fell 10 percent to $1.5 billion, a shift driven by a surge in lower-budget indie films rather than high-spend studio features.

Only 10 major studio titles were represented in the most recent statewide incentives — including Heat 2 and the next Jumanji — compared to 42 independent projects, many of them under $10 million. The result: more filming days, fewer dollars spent.

Los Angeles mirrors the trend. Feature production ticked up about 10 percent, but FilmLA reported a troubling 20 percent decline in episodic television, a result of reduced series orders and the ongoing recalibration of streamer spending.