LOS ANGELES – At the Burbank City Hall chambers packed with Hollywood union workers, community advocates and journalists, Sen. Adam Schiff, D-Calif., laid out the cost of losing local film and TV production:

More than 42,000 jobs lost. Livelihoods destroyed. Future opportunities lost.

Increasingly, Schiff said, those jobs are being "lured abroad" by "foreign governments that have invested aggressively in building their own film industries."

To underscore the point, Schiff cited some sobering data: Last year, 45% of all U.S. films and scripted television shows were shot internationally, up from about 33% in 2022.

California and other states have bolstered their production incentive programs, but it's not enough, Schiff said. The former federal prosecutor was making the case for why a federal tax credit is needed to level the playing field.

"State programs cannot simply substitute for the kind of global, federal and competitive tax incentives that are needed to bring production back to American soil and stop its offshoring," he said last month at the event. "The urgency could not be greater."

Many industry leaders agree. In a recent survey conducted by data firm ProdPro, studio executives "overwhelmingly" said a U.S. federal incentive program that could be added on top of state tax credits would "materially increase domestic production activity."

"Theoretically, it just makes a lot of sense," said Joe Chianese, senior vice president at Entertainment Partners, which tracks production incentives worldwide. "If it were to happen, it would definitely help not just California, but U.S. production in general."

A federal credit, however, would require bipartisan congressional support — something that's in short supply these days in Washington, D.C. — as well as the approval of President Donald Trump.

The president is not always a fan of Hollywood, though he has appointed three "special ambassadors" tasked with boosting U.S. production.

To be sure, the U.S. still captures the bulk of big budget productions, but its market share in that category is shrinking. Last year, the U.S. led all countries with a total of $12.15 billion in production spending, but that was down 20% from 2024, according to ProdPro.

Here's a look at where the film money is going:

U.K.

The United Kingdom has long been a magnet for Hollywood, but its allure has only grown in recent years thanks to expanded film incentives, experienced crews and new facilities.

The U.K. had the second-highest production spending in 2025 with a total of $6.97 billion, a gain of 15%, according to ProdPro.

Emblematic of the shift: Walt Disney Co.'s Marvel Studios is now shooting most of its projects, including the upcoming "Avengers: Doomsday" film, in the U.K. rather than its longtime home of Georgia. The state invested heavily in building soundstages to attract film business from California, earning the moniker "Hollywood of the South."

Other high-profile productions that filmed in Britain include Universal Pictures' "The Odyssey" and Sony Pictures Entertainment's upcoming Beatles movie quartet, as well as such TV shows as HBO's "Game of Thrones" prequel "A Knight of the Seven Kingdoms."

Famously, Warner Bros. Pictures produced all eight "Harry Potter" films at the Leavesden Studios, which it now owns. Just 17 miles away, Pinewood Studios, which opened in 1936, has hosted Amazon MGM Studios show "The Lord of the Rings: The Rings of Power," Paramount Pictures' "Mission: Impossible — Dead Reckoning Part One" and several "Star Wars" films.

Last year, international feature film and TV production spending contributed about $7.8 billion to the U.K. economy, according to a recent report from the British Film Commission. U.S. film spending in the U.K. rose 29.7% from 2024, the report said.

"Studios, directors and producers continue to recognize the U.K. as a beacon of reliability for fiscal incentives, infrastructure and talent in a shifting, uncertain and highly competitive environment," British Film Commission Chief Executive Adrian Wootton said in a statement.

Britain revised its program in 2024 and now offers a 25.5% refundable tax credit for qualifying feature film and TV productions and about 30% for animated films and TV shows, as well as children's TV programs (indie films can qualify for an enhanced credit of nearly 40%).

Unlike in California, the British tax credits can be applied to offset salary costs of actors, directors and producers. What's more, there is no funding cap for the program.

"The U.K. not only has great incentives but a strong crew base and infrastructure," Chianese said.

Canada

Canada has been a go-to destination for U.S. producers since the early 1980s.

Though it developed an early reputation for shooting TV movies, the country has expanded into shows and feature films, bolstered by a federal incentive of 16% on Canadian labor, in addition to provincial tax credits that can stack on top of that. If a project shoots in Manitoba, for instance, the federal and provincial credits and uplifts can add up to more than 60%.

That's attracted major productions including HBO's apocalypse drama "The Last of Us," which filmed its first season in Alberta; and FX's "Shogun," which shot in British Columbia, long a film hub.

The province also has postproduction tax credits that incentivize animation and visual effects work. Currently, shows such as CBS procedural "Tracker" and Showtime thriller "Yellowjackets" are filming in British Columbia.

But the continued decline of broadcast TV, as well as spending cutbacks at streaming services, hit Canada hard.

Last year, the country attracted $4.61 billion in high-budget production spending, down 13% from 2024, according to ProdPro.

"It's getting better," said Marnie Gee, British Columbia's film commissioner. "I think we're cautiously optimistic."

Eastern Europe

Eastern Europe accounted for $1.53 billion in production spending in 2025, up a whopping 78% over the previous year, led by Hungary and Germany.

Eastern Europe has several selling points, among them flexible above-the-line incentives and lower production and labor costs than in the U.S. and U.K.

In Hungary, spending from high-budget projects more than doubled from $486 million in 2024 to a little over $1 billion in 2025, according to ProdPro data. The country offers a 30% rebate that expands when factoring in eligible Hungarian spending.

Movies that recently filmed in Hungary include Warner Bros. and Legendary Entertainment's "Dune: Part Two" and Disney-owned Searchlight Pictures' "Poor Things."

"The ability to show up to Hungary now and have a purpose-built stage space, a trained crew and the infrastructure there — that's just a new level of competition the U.S. faces," said Alex LoVerde, chief executive and co-founder of ProdPro.

Germany too has been abuzz with film activity. In 2025, its large-budget production spending totaled $348.5 million, up from $97 million during the prior year, according to ProdPro.

Late last year, Germany bolstered its federal incentive program, bumping its cash rebate to 30% from its previous 20% to 25% level, and increased its overall annual cap to about $293 million, up from about $156 million.

The federal benefits can be combined with regional film funds, such as those in Bavaria or Berlin-Brandenburg, which hosted the upcoming release "The Hunger Games: Sunrise on the Reaping."

Germany upped its incentives to keep up with rival hubs such as the Czech Republic and Ireland.

"Money rules the game," said Christiane Krone-Raab, head of the Berlin Brandenburg Film Commission. "We had to do something about it."

Ireland

The Emerald Isle has become a top filming location.

Spending totaled $320 million last year, up 42% from 2024, according to ProdPro. The country was even ranked in the top five preferred filming spots in ProdPro's executive survey.

Ireland offers a 32% base tax credit, as well as targeted visual effects incentives and specific sweeteners for unscripted series, which have lured U.S.-based game shows such as "The Floor," which can have as many as 100 contestants and is hosted by actor Rob Lowe.

"It's cheaper to bring 100 Americans to Ireland than to walk across the lot at Fox," Lowe told listeners of his "Literally!" podcast last year.

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—Times staff writer Cerys Davies contributed to this report.

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