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Animated productions are emerging as a force in California\u2019s film and TV tax credit program.<\/p>\n
4 animated titles from Disney, DreamWorks and Pixar nabbed $71.6 million to shoot within the state, the California Film Commission announced on Tuesday. The figure accounts for greater than 38 percent of the estimated $186.6 million handed out to 41 recent movies chosen to receive tax credits. Collectively, they\u2019ll spend roughly $204.7 million and hire 1,977 forged and crewmembers.<\/p>\n
This round of incentives marks one 12 months since major changes to this system spurred by a plunge in shooting levels were implemented. It appears Los Angeles is beginning to see the impact of the expansion, with production within the region trending upward. Among the many changes: expanding the eligible categories of production to incorporate animation.<\/p>\n
The overhaul may prove to be a boon for DreamWorks, which was chosen to receive $19 million for Shrek prequel Donkey<\/em>. It also got $7.8 million for a second untitled film.<\/p>\n If not for the subsidy, production for Donkey<\/em> may not have been based within the state, DreamWorks COO Randy Lake said. \u201cThe California Film Commission\u2019s tax credit is a game changer, allowing DreamWorks Animation to maintain production on two of our Most worthy franchises in California,\u201d Lake explained.<\/p>\n Also headlining the animated movies on this allotment is Disney\u2019s Hexed<\/em> ($18.5 million). The film, which stars Hailee Steinfeld and Rashida Jones, follows an unconventional teenager from a boring town who by accident finds herself whisked away to a world of magic after discovering she\u2019s a witch.<\/p>\n Of the 4 animated features, Pixar got the largest subsidy to create a yet-to-be-titled movie ($26.2 million) in California. In total, production entities owned by Disney nabbed $44.2 million for 2 movies, a tidy sum for projects the studio could have elected to make in California whatever the tax credit.<\/p>\n Major animated movies are emerging as near shoe-ins to take part in the California film and TV tax credit program, which prioritizes qualified spending and jobs creation. They easily satisfy requirements that titles incur 75 percent of their budgets within the state because they mostly depend on postproduction work and voice recording facilities, amongst other things, slightly than on-location shooting. Which means most of their spending is of course generated in California, making it easier to fulfill the brink.<\/p>\n The roles ratio used to pick productions also favors animation because the category is usually more labor-intensive than live-action, generating higher below-the-line spending relative to the whole production budget. Family Guy<\/em> spinoff Stewie<\/em> and Dan Harmon\u2019s President Curtis<\/em> have already been tapped to get subsidies. <\/p>\n Also included on this allotment of incentives: Artist Equity\u2019s Gingerbread Man<\/em> ($7 million) and untitled movies from Disney\u2019s twentieth Century Studios ($8.2 million) and Warner Bros. ($42 million!).<\/p>\n In total, the 41 movies are expected to generate $544 in qualified expenditures, in accordance with the film commission.<\/p>\n \u201cCalifornia has long set the usual for entertainment production, creating good-paying jobs and showcasing the creativity and innovation that outline the Golden State,\u201d said Gov. Gavin Newsom in a press release. \u201cThe primary 12 months of the expanded tax credit program is already delivering results \u2013 generating billions in economic activity, creating opportunities for businesses and the workforce, and bringing more productions home to California.\u201d <\/p>\n Added California Film Commission director Colleen Bell, \u201cFrom major studio features and independent movies to animated projects, the variety of productions selecting California speaks to the strength of our industry and the unequalled talent, infrastructure, and artistic ecosystem that exist here.\u201d <\/p>\n After filming levels hit a brand new nadir last 12 months, L.A. saw a roughly 10 percent increase in shoot days to begin 2026 in comparison with the three month period from October to December, in accordance with the most recent report from permitting office FilmLA. Features saw a significant uptick in production, logging a 52 percent year-over-year increase thanks, partially, to just about 1 \/ 4 of all filming within the category coming from titles receiving subsidies to shoot within the state. <\/p>\n The total list of projects included on this round of California\u2019s film and TV tax credit program is below:<\/p>\n