Disney’s upcoming animated film “Hexed” and DreamWorks Animation’s “Shrek” prequel “Donkey” are among the 41 new projects approved for California’s expanded production tax incentive program, bringing the total number of recipients in the program’s first year since its dramatic expansion to 170.
“Hexed” and “Donkey” joined the list as part of new policy changes approved by California legislators last year allowing animated projects to qualify for the incentive program for the first time.
Disney and DreamWorks, which have their main headquarters in Burbank and Glendale, respectively, but have outsourced production work to Vancouver and other non-American hubs, are best positioned to take advantage of the new incentive and will likely do so for the foreseeable future. Pixar, which is based in the Bay Area neighborhood of Emeryville, has also received a production incentive for an untitled upcoming project.
“The California Film Commission’s tax credit is a game changer, allowing DreamWorks Animation to keep production on two of our most valuable franchises in California,” said Randy Lake, chief operating officer at DreamWorks Animation. “We are deeply grateful for this meaningful support, which reinforces our commitment to producing world-class animation in our home state.”
“For over a hundred years, California has been home to not only The Walt Disney Company but also an incredibly talented community of filmmakers, artists and production professionals,” said Alan Bergman, chairman of Disney Entertainment Studios, The Walt Disney Company. “We are happy to have a number of projects selected for the state’s Film & Television Tax Credit Program and are grateful to the California Film Commission, Governor [Gavin] Newsom, and the legislative leaders who have worked to strengthen opportunities for production here as we continue to invest in California’s world-class creative workforce.”
Other notable projects approved in this round include “Gingerbread Men,” a project produced by Ben Affleck and Matt Damon’s Artists Equity, which currently has first-look deals with Netflix and Sony.
“We received the approval letter informing us that Gingerbread Men was accepted into the California Film and Television Tax Credit Program,” said Affleck. “Under the program, we have been able to make the films ‘Argo,’ ‘Unstoppable’ and ‘Accountant 2.’ Our upcoming film, ‘Gingerbread Men,’ will be filmed in Los Angeles, California — close to our company office and the best and most experienced cast and crew, vendors and service providers.”
It has been one year since Gov. Newsom and California lawmakers approved a raise of the incentive program’s annual cap from $330 million to $750 million, along with an expansion of the program’s eligibility requirements. Since then, the California Commission reports that applications for the program have risen 82% year-over-year.
On the TV side, shows that have been approved for the tax credit over the past year include new seasons of Amazon’s “Fallout,” HBO’s “The Pitt,” CBS’ “NCIS: Origins” and Apple’s “The Studio.” Films approved for the project include Oscar winners Dan Kwan and Dan Scheinert’s untitled new film for Universal, Paul Thomas Anderson’s Best Picture Oscar-winning “One Battle After Another” and Ang Lee’s upcoming “Gold Mountain.”
“California has long set the standard for entertainment production, creating good-paying jobs and showcasing the creativity and innovation that define the Golden State. The first year of the expanded tax credit program is already delivering results – generating billions in economic activity, creating opportunities for businesses and the workforce, and bringing more productions home to California,” said Newsom.
Through the new program, the California Film Commission estimates that nearly 35,000 cast and crew jobs were created by productions approved for the incentive, generating 6,630 shoot days across the state and $6.6 billion in direct spending, including $2.58 billion in wages.
