Animation is taking a larger share of the California film incentive, as the state announced Tuesday that $71 million would go to four animated features.
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The state expanded its production incentive to $750 million a year in 2025, while also opening up the program to animated films and TV shows.
“Donkey,” the spinoff of the “Shrek” series, will claim $19.2 million, while Disney’s “Hexed” will collect another $18.5 million. Two other untitled features, one each from DreamWorks and Pixar, account for the other $34 million.
That adds up to 59% of the $122 million awarded to major studios by the California Film Commission in the latest round. Two live-action films made up the balance: $42 million for an untitled big-budget production from Warner Bros. and $8.2 million for an untitled comedy from 20th Century Studios.
An additional $65 million was given to independent films, including “Gingerbread Men,” from Ben Affleck’s Artists Equity, which collected $7 million. This is the fourth film Affleck’s company has shot in California with state backing.
“Under the program, we have been able to make the films ‘Argo,’ ‘Unstoppable,’ and ‘Accountant 2,’” he said in a statement, noting that “Gingerbread Men” will film in L.A., “close to our company office and the best and most experienced cast and crew, vendors, and service providers. Let’s continue to keep the California film industry alive with the help of the California Film and Television Tax Credit Program!”
The $750 million credit is divided into several buckets — 35% for studio films, 10% for independent films, 40% for TV shows and 15% for TV shows that move to California from out of state. When animation was added to the program last year, it did not get its own bucket, meaning that animated films compete for funding against live-action productions.
“The Simpsons 2” was among the first animated films to get a state tax credit when it was granted $22 million in April.
“Hexed” was announced last August, and is due in theaters in November, and thus is likely very well along in production.
If it were a live-action film, it would not be eligible to receive a tax credit if principal photography had already begun. However, there is no equivalent rule in animation, as there is no principal photography, meaning that the state will in some cases end up incentivizing work that has been completed.
According to the film commission, seven projects applied for tax credits in this round but did not receive them. They either withdrew before the application process was finalized or were ruled ineligible.
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