California Awards Millions in Tax Credits to ‘Jumanji’ and ‘Heat 2’ Productions
California has allocated $342 million in tax credits aimed at revitalizing its film industry. This investment includes a record $43.9 million for the upcoming “Jumanji” film and $37.2 million for “Heat 2,” directed by Michael Mann. An additional $38.4 million has been earmarked for a new project from the Oscar-winning Daniels duo, creators of “Everything Everywhere All at Once.” The Daniels’ film will benefit from a substantial increase in funding due to an expansion of the state’s incentive program.
Details of the Tax Credit Expansion
The California Film Commission announced that under the expanded program, the state will now cover 35.8% of eligible expenses, significantly up from the previous rate of 19.5%. This change allows for larger funding allocations, with credits for individual projects now capped at $48 million, as opposed to the earlier limit of $25 million.
- New Jumanji Film: $43.9 million
- Heat 2: $37.2 million
- Daniels’ Film: $38.4 million (previously awarded $20.8 million)
Production Timelines and Employment
Filming for the new “Jumanji,” which marks the fourth installment in the franchise, is scheduled to commence in November 2023 and is expected to be released in December 2026. Director Jake Kasdan expressed enthusiasm about the project being filmed in California, highlighting the state’s wealth of skilled professionals essential for large-scale productions.
Governor Gavin Newsom endorsed this major enhancement of the film tax credit in June, with the goal of reversing a troubling trend. Since 2022, California has seen a 29% reduction in production jobs. In the latest quarter, only eight significant films were in production statewide, marking a 43% decline compared to the same period in 2024.
Impact on the Film Industry
California is striving to maintain its status as a global leader in film production. Nonetheless, it faces fierce competition from other states like Georgia and New Jersey, as well as international markets that offer appealing subsidies. Current statistics reveal a contraction in film production both in California and abroad, including a 33% drop in the U.K. and a 6% decrease in Canada during the same period.
Recent Awards and Noteworthy Projects
In addition to “Jumanji” and “Heat 2,” several other significant projects have been awarded funding under the new program:
- “Sunday” (Blumhouse): $16.4 million
- “The Fifth Wheel” (Netflix): $14.8 million
- “A Tree Is Blue” (Dakota Johnson): $2.4 million
- Untitled Family Drama (Warner Bros.): $39.6 million
- “Epiphany” (Bill Murray, Kristen Wiig): $4.2 million
- “The Incredible Heist of Hallelujah Jones” (Taika Waititi, Janelle Monae): $1.8 million
- “Nightwatching” (Mila Kunis): $3.3 million
This strategic investment positions California to reclaim its role as a premier destination for film production, amidst challenges in the industry.
