Disney, DreamWorks, Pixar Animated Films Claim 59% Of California’s Latest Studio Tax Credits

You love to see it. Animated features accounted for 59% of the California Film Commission’s tax credits awarded to major studio films in the latest round of the state’s expanded Film & Television Tax Credit Program, reinforcing California’s push to keep high-end animated production from moving elsewhere.

Among the productions backed by the state in its latest round of funding were DreamWorks Animation’s Donkey, Walt Disney Animation Studios’ Hexed, an untitled Pixar feature, and a second untitled DreamWorks Animation film. Together, the four productions are expected to generate $711 million in economic impact for California, including $145 million in qualified wages while employing more than 1,900 cast and crew members.

The newly released project list also illustrates a bump in the scale of investment the state is willing to make in animated production. Pixar’s untitled feature received the largest animation incentive, earning a $26.2 million tax credit based on nearly $74.9 million in qualified expenditures. DreamWorks’ Donkey was awarded $19.2 million, while Hexed received $18.5 million. DreamWorks’ second untitled feature secured an additional $7.8 million credit.

Randy Lake, chief operating officer at DreamWorks Animation, said in a release:

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. We are deeply grateful for this meaningful support, which reinforces our commitment to producing world-class animation in our home state.

Alan Bergman, chairman of Disney Entertainment Studios, added:

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. 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 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.

The news is promising, especially considering that Animation only became eligible for California’s film tax credit program after the state’s recent expansion of the incentive. Since then, the program has also supported projects including The Simpsons Movie 2, Stewie, Adult Swim’s President Curtis, and additional DreamWorks Animation productions, as California looks to retain animation work amid increasing competition from other production hubs.