In a first, animated movies receive film tax credits in California

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Three upcoming animated movies – “Phineas and Ferb,” “The Simpsons Movie 2,” and a new film from DreamWorks – will benefit from California’s recently revised tax credit program. They are the first animated features to receive funding under the updated rules.

The California Film Commission announced Thursday that these films were selected as part of a group of 38 projects to receive production incentives.

These productions are predicted to create over 5,300 jobs for actors and crew, utilize more than 20,800 extras, and contribute almost $800 million to the state’s economy.

These projects combined will require over 1,000 days of filming, and more than 45% of that filming will take place outside of Southern California.

Hollywood Inc.

With more countries offering attractive benefits, better facilities, and skilled film crews, more and more movie and TV production is happening outside of the United States.

According to Colleen Bell, director of the California Film Commission, the state’s film program is now benefiting communities throughout California. It’s designed to create well-paying jobs, help local businesses thrive, and strengthen the state’s creative industries in all regions.

Besides “Phineas and Ferb,” which received $3.5 million, and “The Simpsons Movie 2” from 20th Century Studios (owned by Disney), which got $21.9 million, other projects receiving tax credits include the upcoming Netflix reboot of “13 Going on 30” ($10.9 million), a film called “Black is Blue” starring Laverne Cox ($1.3 million), and “Self Help,” produced by Will Ferrell ($2.6 million).

A new, unnamed crime thriller from Paramount received the largest amount of funding, totaling $25.9 million. DreamWorks’ upcoming, unnamed animated movie was also heavily funded, receiving $24.7 million.

According to DreamWorks Animation’s COO, Randy Lake, the tax break will significantly reduce the film’s costs and enable the studio to employ more people from the area.

California now offers tax breaks for animated movies and TV shows thanks to changes made to its film and television incentive program last year. This move comes as other countries, like Ireland and Canada, have been attracting animated productions with their own tax incentives.

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2026-04-23 18:31