New York and New Jersey are gaining ground in the increasingly competitive race for film and television production dollars, while California’s expanded tax incentive program appears to be slowing the industry’s flight to rival states.

According to ProdPro’s Q2 2026 production snapshot, California remained the top market overall, with $1.33 billion in production spend, up 5 percent year over year. Filming activity in the state also rose 11 percent, a notable rebound after declines earlier this year.

The early numbers suggest California’s larger incentive program may be starting to have an effect. The state has doubled down on efforts to keep production local at a time when studios continue to chase more predictable and aggressive tax credit programs elsewhere.

But the East Coast is moving quickly. New York saw one of the strongest gains of the quarter, with production spend jumping 57 percent to nearly $1.06 billion. Filming activity rose 19 percent, helped by recent changes to the state’s incentive program, including expanded eligibility for above-the-line costs.

That growth comes as New York continues to invest heavily in studio infrastructure. Soundstage capacity across the New York tri-state area has grown sharply since 2020, and new facilities are beginning to come online. In Manhattan, Sunset Pier 94 Studios opened this year, while major productions including Paramount’s A Quiet Place III have recently filmed on city streets.

New Jersey also posted a major spending increase, despite fewer total productions. Production spend climbed 41 percent to $387 million for the quarter, driven largely by episodic television. The state has become increasingly aggressive in courting Hollywood, with Netflix, Paramount and Lionsgate all tied to major long-term studio projects there.

Not every production hub is seeing the same momentum. Georgia, New Mexico and Illinois all posted declines in the quarter. Georgia, once a dominant home for Marvel and other large-scale studio projects, saw filming activity fall 40 percent and production spend drop 43 percent.

The latest numbers underscore how volatile the production landscape remains. Incentives are not the only factor in where projects shoot, but they are often decisive when markets offer comparable crews, infrastructure and locations.

For California, the quarter offers a measure of relief. For New York and New Jersey, it is another sign that the East Coast production boom is no longer theoretical.