Baywatch Reboot & Tax Credits: Hollywood Eyes California Return in 2026

by Chief Editor

LOS ANGELES — After 27 years, California’s entertainment industry may see a familiar sight: the return of “Baywatch.” The iconic beach drama is slated to resume production in California in 2026, offering a potential boost to local workers who have faced increasing challenges in recent years.

Hollywood’s Fight to Stay Local

A reboot of “Baywatch,” originally filmed in California in 1999 before relocating to Hawaii, is one of 17 television shows set to benefit from California’s expanded film and television tax credit program. The program also includes 28 films, including a Snoop Dogg biopic, an Ang Lee Western, and Michael Mann’s long-awaited “Heat” sequel, as announced by Gov. Gavin Newsom in November.

Did You Know? California lost approximately 40,000 jobs in motion picture and video production between 2022 and 2024, representing a 28% decline.

The move comes as California has struggled to compete with other production hubs offering more generous tax incentives. States like New Jersey have recently emerged as popular alternatives, with Paramount signing a 10-year lease for a studio there in October, and Lionsgate and Netflix also beginning construction of new facilities in the state.

A Tax Credit Boost

California officials are hoping a more than doubled tax credit – increasing from $330 million to $750 million in 2025 – will reverse a “brutal, yearslong slowdown” in production within the state. Colleen Bell, executive director of the California Film Commission, stated that “workers are going to be getting back to consistent employment in California in 2026,” including roles for grips, electricians, and costume designers.

Expert Insight: The expansion of California’s tax credit program represents a significant attempt to address a complex problem. While financial incentives are crucial, the long-term success of this strategy will depend on navigating broader industry shifts, including potential consolidation and the impact of emerging technologies like artificial intelligence.

The industry has faced a series of setbacks in recent years, including production halts due to the Covid-19 pandemic in 2020, the 2023 actors and writers strikes, the 2025 Los Angeles County wildfires, and a contraction in studio spending linked to the evolving streaming landscape.

Challenges Remain

Despite the tax credit, challenges remain. Potential mergers between Warner Bros. Discovery and either Netflix or Paramount Skydance could lead to further job losses. The integration of artificial intelligence into filmmaking also presents uncertainty, with negotiations between the Alliance of Motion Picture and Television Producers and the Screen Actors Guild expected to address its workforce implications in February.

The producers of the new “Baywatch” intend to hire 12 cast members and 181 crew members for a 95-day shoot in California, qualifying for a $21 million tax credit against a $52.6 million budget. Similarly, the Snoop Dogg biopic plans to employ 84 cast and 190 crew members over 50 days, receiving a $17 million credit against a $48.3 million budget. Snoop Dogg himself expressed his support, stating, “Big love to the California Film Commission and Gov. Newsom for holdin’ it down with that tax credit.”

Frequently Asked Questions

What prompted the expansion of California’s film and television tax credit program?

California has been losing film and television production to other states and countries with more generous tax incentives, leading to job losses and economic impact within the state.

What types of productions are eligible for the tax credit?

Both television shows and films are eligible, including the “Baywatch” reboot, a Snoop Dogg biopic, an Ang Lee Western, and Michael Mann’s “Heat” sequel.

What other factors are impacting the California film industry?

The Covid-19 pandemic, actors and writers strikes, wildfires, a contraction in studio spending, potential industry mergers, and the rise of artificial intelligence are all contributing to the challenges faced by the California film industry.

As California attempts to reclaim its position as a leading production center, will these incentives be enough to overcome the broader economic and technological forces reshaping the entertainment industry?

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