California has announced a significant investment of $342 million in tax credits aimed at revitalizing the production of big-budget films within the state. This strategic move includes a record allocation of $43.9 million for the upcoming installment of the popular "Jumanji" franchise. The state's commitment to fostering film production is also highlighted by a $37.2 million allocation for "Heat 2," directed by renowned filmmaker Michael Mann, and $38.4 million earmarked for the next project from the Oscar-winning duo, the Daniels, known for their acclaimed film "Everything Everywhere All at Once."
The Daniels' latest project, produced by Universal, had previously received $20.8 million in funding back in March. However, following the recent expansion of California's film incentive program this summer, the project has now secured an additional nearly $18 million. According to a spokesperson from the California Film Commission, the Daniels withdrew from the program after their initial funding allocation and later reapplied. As a result, the state will now cover 35.8% of the qualified expenses, a significant increase from the previous coverage of 19.5%.
The fourth "Jumanji" film, marking the third installment since 2017, is set to commence filming in November and is scheduled for release in December 2026. Director Jake Kasdan expressed his excitement in a statement, stating, "I am thrilled that it will be made in California. I have long looked forward to the day when the California Film Incentive would help us bring movies like this one back home — and now that it does, I am so grateful that ours will be among the first to take advantage of the new program." Kasdan emphasized the importance of California's skilled workforce, noting, "Making these big popcorn movies requires hundreds of specially-skilled people, and the world’s finest live in California."
Governor Gavin Newsom signed a significant expansion of the tax credit program in June 2023, aiming to combat an industry-wide downturn that has seen production jobs decrease by 29% since 2022. The expanded program will allocate $337 million annually to feature films and $412 million to television shows for the next five years. Recent data from ProdPro indicates that only eight big-budget feature films were in production during the last quarter in California, representing a 43% decline compared to the same quarter in 2022.
While the U.S. remains the largest global hub for film production, California faces stiff competition from other states like Georgia, New Jersey, and New York, which offer their own subsidies to attract filmmakers. Furthermore, international markets such as Canada and the U.K. are also providing enticing incentives to lure productions overseas. Prior to the recent expansion, the maximum credit available for any single project was capped at $25 million, with most projects limited to $20 million. Under the new program, this cap has been raised to $48 million.
In July, the California Film Commission awarded $42.8 million to a new Hulu series created by Dan Fogelman. This recent allocation demonstrates California's commitment to supporting both big-budget films and innovative television projects. As the state continues to enhance its film incentives, the hope is to rejuvenate the industry and bring more production jobs back to California.
