During a high-level press briefing for the CBS 2026-2027 primetime lineup, top network executives signaled that the future of television production in Southern California hinges on significant legislative intervention. CBS Entertainment President Amy Reisenbach and George Cheeks, the Co-CEO of Paramount Global and President and CEO of CBS, addressed the growing economic pressures that have led to a marked exodus of production from Los Angeles. The executives emphasized that while the network maintains a desire to film in the historic heart of the entertainment industry, the current financial landscape necessitates a modernization of both state and federal tax incentive programs.
The briefing comes at a precarious time for the Los Angeles production ecosystem. For decades, the region served as the undisputed global hub for scripted television, but a combination of rising costs, aggressive incentive programs from competing jurisdictions, and a post-strike industry contraction has left many local soundstages vacant. Reisenbach and Cheeks noted that while CBS currently produces several high-profile series in the region—including the veteran procedural NCIS, its prequel NCIS: Origins, and the reimagined Matlock—future projects, such as the Matt LeBlanc-led police drama Flint currently in development, require a more sustainable financial model to remain in California.
The Economic Imperative for Policy Revision
The central argument presented by the CBS leadership revolves around the "financial model" of modern television production. In an era of peak TV contraction and shifting revenue streams from linear broadcast to streaming, studios are under intense pressure to optimize every dollar spent. Reisenbach clarified that while the creative desire to film in Los Angeles remains strong, the ultimate decision often rests with the studio’s budgetary requirements.
"It ultimately is a studio decision because they are the ones that handle the budgets, but we want to find the right financial model for every show," Reisenbach told reporters. "And when we can, and it makes sense to shoot in Los Angeles, we will."
However, "making sense" is increasingly defined by the bottom line. George Cheeks elaborated on the necessity of legislative evolution, specifically calling for the introduction of a federal tax credit for film and television production. Such a move would aim to level the playing field for the United States as a whole against international production hubs like Canada, the United Kingdom, and Australia, which offer robust national incentives. Furthermore, Cheeks advocated for "amplifications" to California’s existing Film & Television Tax Credit Program, which he argued has fallen behind the offerings of other domestic competitors.
The Above-the-Line Disadvantage
One of the most specific policy shifts requested by Cheeks involves the treatment of "above-the-line" costs. In industry parlance, "above-the-line" refers to the expenses associated with the creative talent of a production, including salaries for actors, directors, writers, and producers. Currently, California’s tax incentive program—administered by the California Film Commission—primarily focuses on "below-the-line" costs, such as crew wages and local vendor expenditures.
Cheeks pointed out that competitor states, including New York, Georgia, and New Mexico, have already moved to include above-the-line costs in their incentive packages. This makes those states significantly more attractive for star-driven vehicles or high-budget dramas where talent salaries comprise a substantial portion of the total budget.
"We want to shoot [here] as much as possible, but we do have a financial model that we have to hit," Cheeks added. "So we have to continue to press for a federal tax credit as well and to press for even greater improvements on the California credit as well. It’s important."
By covering a percentage of the salaries for top-tier talent, states like Georgia have successfully lured away massive franchises that would have historically been filmed on the backlots of Burbank or Culver City. For CBS, the inclusion of these costs in California’s program could be the deciding factor for whether a new series like Flint anchors its production in Los Angeles or relocates to a more tax-friendly environment.
A Chronology of Decline: Tracking the Production Exodus
The call for policy change is backed by a series of sobering reports detailing the decline of the Los Angeles production market. The trajectory of this downturn has been accelerated by several key events over the past three years:
- The 2023 Labor Stoppages: The dual strikes by the Writers Guild of America (WGA) and SAG-AFTRA brought the industry to a standstill for nearly half of 2023. While production was expected to roar back in 2024, the recovery has been much slower than anticipated, as studios implemented cost-cutting measures and "right-sized" their content slates.
- The Q4 2025 Slump: Data from FilmLA, the official film office for the City and County of Los Angeles, revealed that on-location shoot days for television dropped by nearly 22 percent in the final quarter of 2025. This period was characterized by a lack of new series pickups and the cancellation of several long-running shows.
- The Q1 2026 Contraction: According to a report from ProdPro, California saw a 14 percent decline in total filming days in the first quarter of 2026. Paradoxically, production spending inched up by 2 percent during the same period, suggesting that while fewer projects are filming, the ones that remain are becoming more expensive to produce, further squeezing profit margins.
- The Scripted TV Crisis: The departure of episodic television has hit the region hardest. FilmLA reported that between 2023 and 2024, scripted television shoot days on city soundstages declined by 23 percent. Currently, television filming levels are down more than 50 percent compared to the five-year average, a statistic that industry analysts describe as a "hollowing out" of the local middle class of crew members and technicians.
Comparative Analysis: California vs. The Rising Hubs
The pressure on California is not merely internal; it is driven by the aggressive expansion of production hubs elsewhere. For example, Georgia offers a transferable tax credit of up to 30 percent with no annual cap on the total amount of credits issued. This has resulted in a massive infrastructure boom in Atlanta, which now rivals Los Angeles in soundstage capacity.
New York recently increased its annual film tax credit cap to $700 million and expanded its reach to include more above-the-line costs and a higher percentage for productions that film outside of New York City. New Mexico has similarly positioned itself as a "production sanctuary," offering a 25-35 percent refundable tax credit that has attracted long-term commitments from major studios like Netflix and NBCUniversal.
In contrast, California’s program is capped at $330 million per year and utilizes a complex "jobs ratio" formula to determine eligibility. While the state recently transitioned to a "refundable" credit system to make it more competitive, CBS executives argue these tweaks are insufficient to counter the sheer scale of incentives offered by rival jurisdictions.
Stakeholder Reactions and Broader Implications
The statements from Reisenbach and Cheeks have resonated across the industry, drawing reactions from labor unions and local business advocates. Organizations like IATSE (International Alliance of Theatrical Stage Employees), which represents the vast majority of below-the-line crew members, have long advocated for expanded tax credits to protect local jobs. For every day a scripted drama films on location, it supports hundreds of jobs, ranging from caterers and drivers to electricians and carpenters.
Local small businesses in Los Angeles, particularly those in the "support" sector—such as prop houses, equipment rental firms, and dry cleaners—have felt the brunt of the 50 percent decline in television filming. Analysts suggest that if the trend continues, the specialized infrastructure that makes Los Angeles unique could begin to erode as businesses relocate or close permanently.
The push for a federal tax credit is a more ambitious and politically complex goal. Proponents argue that a federal incentive would prevent "race-to-the-bottom" competition between states and help the U.S. maintain its dominance in the global cultural export market. However, such a proposal faces significant hurdles in a divided Congress, where critics often frame film incentives as "corporate welfare" for wealthy Hollywood studios.
Looking Ahead: The Future of the CBS Slate
As CBS prepares for the 2026-2027 season, the location of its upcoming productions remains a point of strategic deliberation. The network’s commitment to L.A.-based filming for Matlock and the NCIS franchise provides a critical anchor for the local industry, but the executives’ comments serve as a clear warning: the status quo is no longer guaranteed.
The potential order of Flint represents a litmus test for the region. If the show is greenlit and remains in Los Angeles, it will be seen as a victory for the local industry. If it follows the path of other high-profile series to Georgia or New York, it will further validate the concerns raised by Reisenbach and Cheeks.
The dialogue between Hollywood’s major players and California’s policymakers is expected to intensify in the coming months. With the current California tax credit program up for its next cycle of legislative review, the testimony of executives from major networks like CBS will likely play a pivotal role in shaping the future of the "Golden State’s" most iconic industry. For Los Angeles, the stakes are nothing less than the preservation of its identity as the entertainment capital of the world.
