Despite some rumblings to the contrary, the producers of ABC's 'Nashville' have decided the show will remain in its namesake city for its upcoming second season.

Executives had been considering moving the show to Los Angeles and using sets to re-create the Nashville settings for the upcoming season in the wake of changes in local and state laws that put a cap on how much of the production could be reimbursed through tax incentives.

According to Nashville's Tennessean newspaper, filming for last season brought an estimated $40 million in revenue to the city. The show recouped 32 percent of its production costs from a 17 percent grant from the Tennessee Department of Economic and Community Development, as well as a 15 percent refundable tax credit from the Tennessee Department of Revenue.

Under recent changes to state laws, the show would only be allowed to recoup 25 percent of production costs in its second season. Producers have been negotiating with state and local officials to get around that cap, and struck a deal in which the new state budget includes $11.25 million set aside as a one-time, non-recurring incentive for the show.

Nashville Mayor Karl Dean's office issued a statement after the deal was reached, saying, "Mayor Dean is thrilled that the show will continue to film in Nashville. It's seen by millions of viewers and serves as advertising for the city that you simply can't buy - it generates real economic value."

'Nashville' Executive Producer Steve Buchanan is also pleased with the result. "The city's an integral and important part of what we are portraying, from the locations that we use around town to the individuals that we are able to involve within the music industry," he states. "It's great that we're able to continue to portray the city as it truly is."