Los Angeles Mayor Karen Bass proclaimed Tuesday that Hollywood is “turning a corner,” as production volume ticked up slightly in the first quarter of 2026 on the back of increased state subsidies.

Bass, who is in a tough race for reelection, hailed the increase as a sign that local efforts to cut red tape are paying off.

“We have a long way to go, but after years of decline, Hollywood is finally turning a corner with more productions and more jobs,” Bass said in a statement. “City Hall will continue to partner with the industry to support good paying union jobs and expand economic opportunity across L.A.”

Production in TV, film and commercials rose 16% from the previous quarter in the L.A. region, though it was still well below historical levels. Production volume has not risen two quarters in a row since the peak TV era of 2021.

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Feature film production led the way, as shoot days rebounded to the highest level in two years. Television drama and comedy also showed modest gains, though that was offset by a sharp decline in reality TV, which does not receive state incentives.

Reality TV production fell 52% compared to the same quarter of 2025, 71% below its five-year average. That marks the lowest level since the pandemic, and the second-lowest since 2010.

The share of L.A. film projects that received a California tax credit rose to 21.8% — the highest since FilmLA, the regional permitting agency, began tracking that statistic two years ago. TV productions receiving a subsidy also rose to a record 17.1%.

The sharp contraction in film and TV production since 2022 has been a global phenomenon, as major studios pumped the brakes on the streaming frenzy of the previous decade. Several states — including California, New York and Texas — have responded by hiking their tax incentives to try to lure or at least retain film activity.

California Gov. Gavin Newsom and the Legislature more than doubled the state’s program to $750 million last summer, and the first projects awarded credits under that expansion went into production in the first quarter.

The incentive hike has not come close to offsetting the massive decline in overall production. But the data does suggest a “new normal” is setting in, with L.A. production becoming a smaller, more subsidized industry than it was in the past.

“While some of the latest numbers are encouraging, we know that there is still significant work to be done to bring filming and jobs back to the region,” said Denise Gutches, the CEO of FilmLA.

Bass and FilmLA announced a temporary pilot program last week to offer low-cost permits for smaller productions. The city has also offered a 20% discount on parking costs for productions over the next year, matching a deal that was offered to help facilitate the filming of “Baywatch” at Venice Beach, which was awarded a $21 million state tax credit.

Councilwoman Nithya Raman, who is challenging Bass in the June 2 primary, issued her own plan last week to cut production fees and red tape. She also threw her support behind eliminating the cap on state tax incentives, thus extending a subsidy to all in-state production.

“A slight uptick is welcome news for the workers who depend on this industry, but it does not erase years of catastrophic decline under the current mayor,” Raman said in a statement on Tuesday. “As mayor, I’ll push for the changes necessary to bring Hollywood back, including faster, more-predictable permitting, lower fees, uncapped state tax credits, appointing a film liaison with industry experience and making the city a reliable partner to productions of every size.”

Tax incentives have also become a hot-button issue in the governor’s race, as San Jose Mayor Matt Mahan and former L.A. Mayor Antonio Villaraigosa also called for eliminating the incentive cap. Neither has offered an estimate of the cost of that proposal.