Grey's Anatomy Texas Spinoff Delayed and Moving to New Mexico Due to California Tax Credit Rejections

Grey’s Anatomy Texas Spinoff Delayed and Moving to New Mexico Due to California Tax Credit Rejections

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The Grey’s Anatomy Texas spinoff moves production to Albuquerque

The upcoming Grey’s Anatomy spinoff set in West Texas is moving its production from California to Albuquerque, New Mexico, following two failed attempts to secure state tax credits. This relocation has triggered a significant production delay, pushing the series from its original midseason 2027 release window to the 2027-2028 television season.

The decision marks a departure from the long-standing production traditions of Shondaland.

Tax credit rejections trigger delays and job losses

The shift to New Mexico was not the preferred outcome for Shondaland or 20th Television. According to Deadline, the production applied for California tax credits twice before deciding to relocate. The delay was a direct consequence of these failed applications, as the production waited to see if a different outcome was possible before finalizing the move to Albuquerque.

Executive producer Betsy Beers provided context regarding the struggle to remain in California during testimony at an Assembly Committee hearing in North Hollywood. She expressed frustration that the production’s history in the state did not influence the decision-making process regarding financial incentives.

“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. And then we were told, regardless of earlier messaging, there would be no chance to apply if you were a new show; returning, sure, not a new show,” Beers said.

The impact of these rejections extends beyond the studio’s bottom line. Beers stated that the attempt to stay in California resulted in lost personnel, lost time, and lost money. The new series is currently in pre-production, helmed by Shonda Rhimes and current Grey’s Anatomy showrunner Meg Marinis, with Ellen Pompeo also serving as an executive producer.

The geographical shift also introduces logistical hurdles for the leadership. Because Marinis is simultaneously running the flagship Grey’s Anatomy, the proximity of the two productions was a vital factor for her ability to manage both roles. Instead of working locally, leadership faces a 12-hour commute to New Mexico.

California struggles to retain major productions

The departure of the spinoff highlights a growing tension in the California film industry. While Governor Gavin Newsom has expressed hope to raise the cap of the California Film & TV Tax Credit program from $750 million to $1 billion, the state continues to see a decline in production. This trend has left many local sound stages sitting empty.

Grey's Anatomy Texas Spinoff Delayed and Moving to New Mexico Due to California Tax Credit Rejections
Photo: yahoo.com

The economic stakes are high for local communities. When productions remain in Los Angeles, the crew members and staff can live locally, spending their wages at neighborhood businesses and remaining present with their families. Beers noted that the production had assumed a level of “loyalty to the state” would exist, especially given the expectation that a show Shonda Rhimes created or co-created would provide at least six seasons of steady employment for a local crew.

Grey’s Anatomy Heads to Texas! New Spin-Off Coming in 2027 🏥🤠 #GreysAnatomy #TVNews

The situation presents a complex economic debate. Proponents of higher tax credits argue that the state must compete with other regions to prevent the devastation of the local entertainment economy. On the other hand, the current system’s inability to attract new shows—specifically by excluding them from credit eligibility—creates a barrier that even established production houses cannot overcome. As Beers noted, the expectation of stability for a wonderful crew and staff was met with a reality that forced them to move to Albuquerque, where they have found a more welcoming working environment.

While the move to New Mexico secures the production’s future, it leaves the question of California’s long-term competitiveness unanswered. Whether the proposed increase to a $1 billion credit cap will be enough to bring major series back to the state remains to be seen.

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