Animated productions are emerging as a force in California’s film and television tax credit program.
Four animated films from Disney, DreamWorks and Pixar have received $71.6 million to film in the state, the California Film Commission announced Tuesday. This number represents more than 38 percent of the estimated $186.6 million distributed among the 41 new films selected for tax credits. Collectively, they will spend approximately $204.7 million and hire 1,977 cast and crew members.
This round of incentives marks one year since major changes were implemented in the program as a result of lower shooting levels. Los Angeles appears to be beginning to see the impact of expansion, with production in the area increasing. Among the changes: Expanding eligible production categories to include animation.
The fix could be a boon for DreamWorks, which is set to receive $19 million for a Shrek prequel donkey. It also received $7.8 million for the untitled second film.
If not for support, for production donkey Maybe it’s not based in the state, said Randy Lake, DreamWorks’ chief operating officer. “The California Film Commission tax credit is a game-changer, allowing DreamWorks Animation to continue producing two of our most important franchises in California,” Lake explained.
Disney films also top animated films in this group swindler ($18.5 million). The film stars Hailee Steinfeld and Rashida Jones, and follows the story of an unconventional teenager from a boring town who accidentally finds herself whisked away to the wizarding world after discovering she is a witch.
Of the four animated films, Pixar received the largest subsidy to produce a yet-to-be-titled film ($26.2 million) in California. In total, Disney-owned production entities received $44.2 million for two films, a significant amount for projects the studio might have chosen to do in California regardless of the tax break.
Major animated films appear to be moving closer to participating in California’s film and television tax credit program, which prioritizes eligible spending and job creation. They easily meet the requirement that titles have 75 percent of their budgets in the state because they rely mostly on post-production work and sound recording facilities, among other things, rather than on-location shooting. This means that most of their spending is generated naturally in California, making it easier to meet the minimum.
The proportion of jobs used for production selection also favors animation since the category is often more labor intensive than live action, resulting in higher below-the-line spending compared to the total production budget. Family man spin off Stewie And Dan Harmon President Curtis It has already been exploited for subsidies.
This allocation of incentives also includes: Artist rights Gingerbread man ($7 million) and untitled films from 20th Century Disney Studios ($8.2 million) and Warner Bros. ($42 million!).
In total, the 41 films are expected to generate $544 in eligible expenses, according to the Film Commission.
“California has long set the standard for entertainment production, created good-paying jobs and showcased the creativity and innovation that defines the Golden State,” Gov. Gavin Newsom said in a statement. “The first year of the expanded tax credit program is already producing results – generating billions of dollars in economic activity, creating opportunities for businesses and the workforce, and bringing more products to California.”
“From major studio features and independent films to animated projects, the diversity of productions being selected for California speaks to the strength of our industry and the unparalleled talent, infrastructure and creative ecosystem found here,” added Colleen Bell, Director of the California Film Commission, added.
After shooting levels bottomed out last year, Los Angeles saw a nearly 10 percent increase in shooting days to start 2026 compared to the three-month period from October to December, according to the latest report from the FilmLA permitting office. Features saw a significant spike in production, posting a 52 percent year-over-year increase, thanks in part to nearly a quarter of all films in this upcoming category of titles receiving subsidies to film in the state.
The full list of projects included in this round of the California Film and Television Tax Credit program is below:
