California's economy might see a boost from the state's expanded film and TV tax credits, but local lawmakers say it's not enough.

Despite Gov. Gavin Newsom authorizing an expanded $750-million film and TV tax credit program last summer, the impending merger between Paramount and Warner Bros. and the projected budget cuts that are expected to follow have reignited fears about the loss of Hollywood jobs and U.S.-based productions.

"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," U.S. Sen. Adam Schiff (D-Calif.) said during a news conference at Burbank City Hall Friday morning.

"We must act, and the urgency could not be greater," said Schiff, adding that he is working on a bipartisan federal film incentive proposal that would be globally competitive.

He said film tax credit programs aren't about Hollywood's stars, but the crew jobs productions create, including roles for set designers, carpenters and lighting crews.

"These are the people who make that magic happen. We want to keep those jobs here, and many of us are deeply concerned about what this potential merger will do to those jobs," Schiff said.

Earlier this week, the California Film Commission revealed that 16 shows had recently received tax credits for filming in the state. The projects represent $871 million in qualified in-state spending and are expected to generate $1.3 billion in economic activity in California. Schiff said the state tax credit has generated more than $29.1 billion in motion picture production wages and supported more than 220,000 jobs.

Los Angeles film activity was still down 13.2% from July through September when compared with the same period in 2024, according FilmL.A. Inc., which handles film permits for the region.

Los Angeles lost 42,000 jobs in the motion picture sector between 2022 and 2024, according to data from the Bureau of Labor Statistics, partly due to the migration of work internationally.

The downturn has put increased financial pressure on independent studios that have struggled to fill their sound stages.

"Federal policymakers must act to level the playing field and make the U.S. film and television industry more competitive on the global stage," said Matthew Loeb, the president of the International Alliance of Theatrical Stage Employees. "For us, production that supplements state incentives is essential to return and maintain film and television jobs in America."

HBO Max's medical drama "The Pitt" is filmed on the Warner Bros. lot in Burbank and is among the shows benefiting from California's tax incentive.

Noah Wyle, the star and executive producer of the show, said during the news conference, that the tax incentive was essential to "The Pitt" filming in L.A., which he said is "prohibitively" expensive.

"As an Angeleno with generational roots to this city and as a seasoned member of its creative community, advocacy for Los Angeles-based production is something that is very close to my heart," Wyle said.

"'The Pitt' has blessedly become proof of that speculative concept. I'm happy to report we'll commence shooting season three this summer, and that a rising tide has indeed lifted all boats in season one under the 3.0 tax program," he added.

The budget for one episode was approximately $6.6 million, so the show received a rebate of about $760,000 per episode. By the end of season one, the production was able to save over $11 million.

Rep. Laura Friedman (D-Glendale), who is working with Schiff on production tax incentives, said that because California is already seeing benefits from the current program, there's no reason a film incentive wouldn't work nationally. Friedman added that tax incentives are a common practice among many industries in the U.S.

"Hollywood is not asking for special treatment. Whether it is computer chips, the energy sector or pharmaceuticals, this is something that is standard in the United States," said Friedman at Friday's event. "In terms of our nation, Hollywood and its ability to tell the story of America, it is something worth saving."

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