7 On Your Side Investigates: Can a tax credit save Hollywood and keep production from fleeing?

HOLLYWOOD (KABC) -- As production continues to plummet in Hollywood, efforts are underway to save Los Angeles' movie and TV jobs. But is it too little too late?

Hollywood actors, producers and workers in all aspects of production are sounding the alarm.

They warn Los Angeles is dangerously close to becoming the next Detroit - a city that has seen its marquee industry flee.

Nationwide the unemployment rate has been pretty steady, with it standing right now at 4.2%.

But here in L.A. County, the unemployment rate is much higher at 5.9%, according to the Employment Development Department.

So why?

Some say it is because the bright lights of Hollywood are fading.

Steve Weiner owns Illuminate Studios and says business has never been so bad.

"Last week I had to lay off four employees who have been with me for over 20 years," Weiner said. "It was so painful for us."

And that pain may only get worse.

The studio has been booked for only two days this month.

And when studios aren't booked and making money, neither are the Hollywood laborers who would be hired to construct and maintain sets.

"I haven't worked since last year," Hollywood Laborer Fernando Luna told 7 On Your Side Investigates.

In just the first three months of this year, on-location production has dropped by 22%, according to FilmLA.

The hardest hit sector has been TV production, which has declined by a whopping 58% in the past three years.

To stop the bleeding, L.A. District 2 Councilmember Adrin Nazarian is pushing a motion that would streamline film permits.

Up in Sacramento, lawmakers are considering boosting the TV and film tax credit from around 20% to 35%.

That's to make L.A. competitive with Georgia, Canada and the UK where production has moved.

If that tax credit doesn't pass, some warn the sun will set on Hollywood.

"I am really considering leaving now," Luna said. "I have to provide. I have a little girl, she just turned 11."

Supporters of this tax credit say it's not a Hollywood hand out, but rather a crucial tool to keep blue collar production jobs in LA.

The California Production Coalition estimates the average location shoot adds 1,500 jobs a day to the L.A. economy.