According to reports, when Stephen Colbert takes over for David Letterman in 2015, the Late Show will remain in New York. Since losing The Tonight Show with the retirement of Jay Leno, Los Angeles had been hoping to woo Colbert from the clutches of the Ed Sullivan theater.
Apparently, New York State tax credits helped keep Colbert in the Big Apple. From Reuters:
CBS said it will be eligible for at least $11 million in state tax credits over five years by keeping the "Late Show" in New York, another example of how states have lured television and film production away from its traditional Los Angeles home with financial incentives.
According to the LA Times, California has been hemorrhaging money to the tune of $2 billion in the last four years from producers taking advantage of tax credits elsewhere after failing to be granted in-state tax credits.
Last year alone, 42 projects that applied for California's credit spent more than $1 billion outside the state, while another 26 projects remained in the state and spent $211 million in California."
One example is AMC's Breaking Bad, which was initially supposed to be set in Riverside, Calif., before it was lured away to Albuquerque instead.