A new Pixar film and the sequel to ‘Michael’ will receive tax credits from California
A new Pixar animated film, the sequel to Lionsgate’s “Michael” and a large crop of indie projects are among the latest films to be awarded a California tax credit for in-state production.
In total, 35 films — including 28 independent projects — received production incentives in the latest round of incentives.
Together, the projects are expected to contribute more than $1 billion in direct production spending in-state and hire more than 5,400 cast and crew members and more than 24,800 background actors, the California Film Commission said Wednesday.
“California is the home of entertainment, full stop,” Gov. Gavin Newsom said in a statement. “We’re not just protecting that legacy; we’re investing in its future.”
Pixar received the largest credit ($40.1 million) for an untitled animated film, followed by Lionsgate, which was awarded $30.8 million for the sequel to “Michael,” the film based on the life of Michael Jackson. Paramount Pictures got $29.3 million for an untitled crime thriller.
The latest round of tax credit awards comes less than a month after Newsom signed a bill to create the state’s first post-production incentive. Industry editors, sound mixers, visual effects artists and composers had said such a credit was necessary to lure jobs back from overseas.
On a national level, a bipartisan coalition of lawmakers is pushing to create a federal tax credit for film and TV. The bill is expected to be introduced in Congress in early November and backers are aiming to get it passed by Dec. 11, when the current Congress ends. If passed, the credit would take effect in 2027 and would be stackable with states’ production incentives.