California is making a bold play to reclaim its status as America’s filmmaking capital, allocating $342 million in tax credits designed to lure big-budget productions back to the state—with a record-breaking $43.9 million commitment going to the next “Jumanji” installment.
Record-Breaking Incentives for Blockbusters
The latest round of California Film Commission allocations represents the state’s most aggressive effort yet to counter an industry-wide production slump that has seen filming jobs plummet 29% since 2022. The expanded incentive program, which took effect July 1 after Governor Gavin Newsom signed it into law in June, raises the per-project cap from $25 million to $48 million—nearly double the previous limit.
Among the major beneficiaries:
- Jumanji 4: $43.9 million (the largest single allocation in state history)
- Untitled Warner Bros. Family Drama: $39.6 million
- The Daniels’ Next Film (Universal): $38.4 million
- Heat 2 (Michael Mann): $37.2 million
The fourth “Jumanji” film, set to begin shooting in November for a December 2026 release, marks the franchise’s return to California. Director Jake Kasdan expressed enthusiasm about the homecoming.
“I have long looked forward to the day when the California Film Incentive would help us bring movies like this one back home — and now that it does, I am so grateful that ours will be among the first to take advantage of the new program,” Kasdan said. “Making these big popcorn movies requires hundreds of specially-skilled people, and the world’s finest live in California.”
The Daniels Get a Windfall
In an unusual turn, the Daniels—the Oscar-winning duo behind “Everything Everywhere All at Once”—saw their allocation nearly double. Their Universal project initially received $20.8 million in March but withdrew and reapplied under the expanded program, securing an additional $17.6 million for a total of $38.4 million.
According to a California Film Commission spokesman, the state will now cover 35.8% of qualified expenses instead of the original 19.5%, though the project’s employment figures remain unchanged. The strategic reapplication illustrates how filmmakers are maximizing benefits under the enhanced incentive structure.
Fighting a Multi-Front Battle
The aggressive incentive push comes as California faces mounting pressure from multiple directions. Only eight big-budget feature films were in production in the state during the most recent quarter—a 43% decline compared to the same period in 2024, according to data from ProdPro.
California must compete not only with other states like Georgia, New Jersey, and New York, which offer their own generous subsidies, but also with international competitors. Canada saw a 6% production decline in Q3 2025, while the U.K. experienced a steeper 33% drop—suggesting the entire industry is contracting, not just shifting locations.
Under the expanded five-year program, California will award $337 million to feature films and $412 million to television productions annually through 2030. In July, the commission made headlines with a $42.8 million allocation to a new Hulu series from “This Is Us” creator Dan Fogelman—a sign that the state is targeting prestige television as aggressively as theatrical features.
Notable Projects Getting California Credits
Beyond the headline-grabbing blockbusters, the latest allocation includes an eclectic mix of projects:
- “Sunday” (Blumhouse): $16.4 million
- “The Fifth Wheel” (Netflix): $14.8 million
- “Epiphany” (starring Bill Murray and Kristen Wiig): $4.2 million
- “Nightwatching” (starring Mila Kunis): $3.3 million
- “A Tree Is Blue” (produced by Dakota Johnson): $2.4 million
- “The Incredible Heist of Hallelujah Jones” (from Taika Waititi, starring Janelle Monáe): $1.8 million
Will It Be Enough?
The U.S. remains the largest global hub for film production, but California’s dominance has eroded as production has dispersed to lower-cost locations. The question now is whether these substantially increased incentives can reverse years of decline.
The state is betting that by subsidizing up to nearly half of a major production’s qualified expenses, it can overcome the fundamental cost advantages that drove filmmaking elsewhere. For California’s entertainment workforce—which has seen nearly a third of production jobs disappear since 2022—the success or failure of this strategy will determine whether Hollywood truly comes home or continues its gradual migration to wherever the next best tax credit can be found.
With projects like “Jumanji 4,” “Heat 2,” and the Daniels’ follow-up to their multi-Oscar winner now locked in for California production, the state has secured some early wins. Whether this translates into a sustained production resurgence or merely represents expensive one-off victories remains to be seen.
