‘Grey’s Anatomy’ Spinoff Moves Production to New Mexico After Not Receiving California Incentives

The upcoming “Grey’s Anatomy” Texas spinoff will shoot in Albuquerque, New Mexico instead of California despite repeated attempts from the producers to keep the production in Hollywood.Shondaland executive producer and creative partner Betsy Beers testified at an Assembly Committee hearing in North Hollywood last week, upset by the limitations and unpredictability of the state’s film and television tax credit system. The upcoming spinoff was rejected twice for a California tax credit, delaying the start of production for the ABC and 20th Television medical drama. ABC’s “Grey’s” West Texas-set spinoff will now debut during the 2027-28 broadcast season instead of midseason next year. Beers claimed that Shondaland’s record of creating long-running shows that employed hundreds of cast and crew members in California did not have any bearing on whether or not they received the tax credit. “When our great partners at ABC applied for the new tax credits this past summer for our new Grey’s Anatomy spinoff set in West Texas, we assumed there’s a long history of loyalty to the state, fighting to stay here when there were no credits to be had, and the fact the odds were — as they had been with every single show that Shonda has created or co-created — there would be at least six seasons for a wonderful crew and staff to keep working and to sleep in their beds at night,” she said. “How wrong we were! We were denied credit due to the fact we were not providing enough jobs for the state to consider us an asset. None of our past history or track record were taken into consideration,” Beers added. The producer also noted in her fiery Oct. 29 speech that the tax credit was particularly challenging to get for a new show. She said that the team lost time, personnel and money fighting to stay in L.A. “Ironically, a few years ago, I was awarded the California Golden State Award for keeping jobs in LA,” she concluded. “I’m here to say, please, please look at metrics and factors when deciding who gets credit, and please increase what’s available. If it all boils down to numbers, all you are going to have is movies coming in and out of here, and the advantages we have discovered with long-running shows will be gone.” The current California tax credit program is capped at $750 million annually. Politicians and entertainment industry professionals have fought to uncap the program to compete with other states. There have also been discussions of creating a federal film tax incentive to lower production costs and compete with other countries, who offer cheaper production options. The spinoff, executive produced by Shonda Rhimes, Beers, Meg Marinis and Ellen Pompeo, is currently in pre-production in Albuquerque. Rhimes and Marinis co-created the series, which has been described as an edgy drama about a medical team at a rural West Texas medical center. Marinis currently serves as the showrunner on the flagship “Grey’s Anatomy” series. Deadline first reported the news of the show’s production move.