TODAY

TODAY   |  August 27, 2013

Filmmakers abandon Hollywood for tax incentives

The number of American TV and film productions to come out of California has dropped by 9 percent over a decade, and Los Angeles Mayor Eric Garcetti is looking to lure back production houses who have jumped to other states like Georgia and North Carolina for better tax incentives. E! Correspondent Jason Kennedy reports.

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>>> well, is tinsel town losing it's sparkle? the increasing cost of shooting movies is causing a growing number of production companies to abandon hollywood and l.a.'s mayor is sounding the alarm. jason kennedy is there with details. good morning to you.

>> good morning. the l.a. mayor declared a state of emergency as films leave for state with better financial incentives. hollywood has always been the home of stars and big budget blockbusters. but these days, l.a.'s run away production costs are causing the film industry to stay hello to places besides hollywood . 68% of the nation's tv and film production came out of california. in 2011 it dropped to 59%. a not so hollywood ending for 90,000 jobs and $3 billion in wages. l.a.'s mayor calls it a state of emergency .

>> we lost the blockbuster films. they don't film here anymore. tax credits around the world and country have taken them away.

>> reporter: and toward georgia and north carolina where they're shooting the next ironman. even battle los angeles was shot in louisiana. the mayor is looking to change that trying to remove limits on the tax incentives that drive production away. a move he says is more about the crew behind the camera than the stars in front of it.

>> it's about the person holding the sound boom and painting the sets. it's the person out there taking care of their family.

>> reporter: ted johnson who writes about the topic for variety magazine notes the trend could be a sign of things to come.

>> the more production that occurs in other cities on a regular basis, the bigger the talent pool is going to be. los angeles risks not just losing that production on a temporary basis but also permanently.

>> reporter: the question now becomes have the final credits rolled on hollywood or is this story one to be continued.

>> now the mayor hopes to appoint a film czar in the fall to work on keeping hollywood here in california. we'll keep you posted on this one.

>> thank you jason kennedy .

>> we were doing the olympics in vancouver. that place is getting a huge amount of movies.

>> and new york city where