California grants film tax credits to 35 indie movies

California has awarded film tax credits to 35 independent movies in its latest round of production incentives, part of a broader package that also includes major animated and live-action projects from Disney, DreamWorks Animation, Warner Bros. Pictures and 20th Century Studios.

The California Film Commission said a total of 41 films were approved in the final awards for the year. Most of the 35 indie titles had budgets lower than $10 million.

Among the independent projects, Ben Affleck’s production company Artists Equity received a $7 million tax credit for "Gingerbread Men", an indie film with a budget higher than $10 million. The company had previously received state subsidies for the 2012 political thriller "Argo" and 2025’s "The Accountant 2."

Several large studio productions were also approved. An untitled Warner Bros. Pictures live-action film received the biggest incentive in the round, at $42 million.

DreamWorks Animation was awarded a $19.2 million tax credit for "Donkey", a "Shrek" spin-off set for release in 2028, along with $7.8 million for an untitled feature. "The credits will allow DreamWorks Animation to keep production on two of its ‘most valuable franchises’ in California", Randy Lake, chief operating officer, said in a statement.

Disney secured an $18.5 million tax credit for its original animated film "Hexed", which will debut in November, and a $26.2 million incentive for an untitled Pixar film. Disney’s 20th Century Studios also received $8.2 million for an untitled live-action comedy.

According to the California Film Commission, the 41 approved films are expected to generate $1.1 billion in direct production spending in the state, create more than 6,100 cast and crew jobs, employ more than 13,000 background actors and account for 993 shoot days in California.

"California has long set the standard for entertainment production, creating good-paying jobs and showcasing the creativity and innovation that define the Golden State", Gov. Gavin Newsom said in a statement. "The first year of the expanded tax credit program is already delivering results - generating billions in economic activity, creating opportunities for businesses and the workforce and bringing more productions home to California."

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