California’s Film Subsidies Boost Production
Michael Mann’s Heat 2 and the upcoming Jumanji sequel are among the key projects benefiting from California’s expanded entertainment tax credit program, aimed at revitalizing the state’s film production industry.
A total of 52 films will receive $334 million in incentives for shooting within California, according to an announcement from the film commission. These productions are expected to generate approximately $1.4 billion in economic activity linked to the entertainment sector and will provide jobs for 8,900 cast and crew members. Most filming will occur in Los Angeles, where shooting rates have reached unprecedented lows.
This round of subsidies attracted double the number of applications for tax credits compared to last year’s similar window, as reported by the film commission. Key updates to the program include an increase in the total cap from $330 million to $750 million, a 35 percent base credit, and improved access to incentives for independent films.
“Without our robust program and recent changes, many of these projects would have been made elsewhere,” stated Colleen Bell, executive director of the California Film Commission. She noted that the state had been losing its share of entertainment production to more competitive regions, but is now in a strong position to not only retain productions but also increase them.
In a strong sign of returning projects, ten films will receive credits for production in the state, including titles like Sunday (Blumhouse) and The Fifth Wheel (Netflix). These projects are forecasted to spend around $340 million in California across 296 shooting days. Notably, Netflix secured funding for two titles worth $34 million in credits, just behind Heat 2 ($37.2 million) and Jumanji ($43.9 million).
“I have eagerly awaited the day when the California Film Incentive would help bring projects back home, and I’m thrilled to be among the first to benefit from the new program,” expressed Jake Kasdan, director of Jumanji. Sony Pictures Entertainment CEO Tom Rothman added, “This will create jobs and revenue at a crucial time while enabling filmmakers to produce their best work.”
Additionally, 42 independent films, mostly with budgets under $10 million, will also receive subsidies. Projects such as Epiphany, The Incredible Heist of Hallelujah Jones, and others are included. Ellen Goldsmith-Vein, producer of Epiphany, highlighted how essential it is to create in a supportive environment like California, which has been pivotal to her career.
