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- How much funding was approved and what it covers
- Biggest single awards and notable recipients
- Michael 2: bigger credit, bigger stakes
- Skydance, New Line and the return of the Friday franchise
- Disney and Pixar’s continuing California investments
- Funding for independent storytellers and underrepresented voices
- Why California’s tax credit has grown more generous
- What these allocations mean for local economies
California taxpayers are set to underwrite a slate of major studio pictures and indie projects after the California Film Commission approved a new round of production tax credits that will funnel hundreds of millions into local shoots. The headline grabber: Lionsgate’s sequel to Michael landed a large share of funding, amid a broader push to keep more film work and crews rooted in the state.
How much funding was approved and what it covers
The commission approved incentives for 35 productions, totaling $226 million in tax credits. These awards are aimed at qualified production costs incurred in California and target both studio tentpoles and smaller independent films.
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Biggest single awards and notable recipients
- Lionsgate: $30.8 million for the Michael sequel, billed as a high-priority studio picture.
- Pixar (Disney): $40.1 million for an untitled project—this is the largest single allocation this round.
- Skydance-related studios: Warner Bros. and Paramount projects were awarded roughly $13 million and $29.3 million respectively. New Line received $11.4 million for its next Friday installment.
- Across Skydance-affiliated films, the total approved reached about $53.7 million.
Michael 2: bigger credit, bigger stakes
The follow-up to the surprise blockbuster benefits from a more generous program than the first film saw. While the original Michael received state help at a lower rate, the new sequel qualifies for a significantly higher percentage of qualified spend—resulting in the $30.8 million award. The first film later turned into a global box office phenomenon, which adds pressure to reproduce that success.
Skydance, New Line and the return of the Friday franchise
New Line’s sequel to Last Friday has been in development for over a year and continues to move forward. The studio frames the movie as a local production rooted in Southern California, emphasizing on-location shooting and hiring of nearby talent and crew.
Local hiring and community ties
- Producers report plans to employ local cast and crew—more than 180 jobs tied to the project.
- The production is officially listed as “Untitled Last Friday Sequel” in state documents.
Disney and Pixar’s continuing California investments
Pixar’s $40.1 million allocation follows a prior $28.7 million award made in June for another Pixar film. Disney studios also received an additional $30 million across two other untitled projects this cycle. These approvals underscore the studio’s ongoing commitment to produce major animated features in California.
Funding for independent storytellers and underrepresented voices
The package includes support for 28 independent films, signaling that the program aims to balance big-budget work with smaller, diverse projects. Among those funded are a new film from director Mike Mills and Leaves of Glass, a drama set within Los Angeles’ Chicano communities.
- Producers Victoria Alonso and Tom Culliver said the picture will reveal a rarely filmed side of L.A. and will rely on top local crews.
- The independent awards are intended to amplify regional stories and to keep production spending inside California.
Why California’s tax credit has grown more generous
Since the first Michael film was made, the state program has expanded rates and incentives to better compete with other production hubs. The current structure offers larger percentages of qualified costs, which studios say helps justify shooting in California instead of relocating to other states or countries.
What these allocations mean for local economies
State officials and producers point to job creation, spending at local businesses, and increased demand for services as primary benefits. With dozens of projects approved, the ripple effects could include more work for background actors, technicians, caterers, and rental houses across Southern California.
