California gives ‘Jumanji’ and ‘Heat 2’ millions of dollars in tax credits

California has secured $342 million in tax credits to boost production of big-budget films, including a record $43.9 million for the next installment in the “Jumanji” series.

The state has also committed $37.2 million to director Michael Mann’s “Heat 2” and $38.4 million to the next film from Daniels, the Oscar-winning team behind “Everywhere All at Once.” The Daniels’ Universal-produced film, which had already been approved for $20.8 million in March, now has a windfall of nearly $18 million thanks to expanded state incentive programs this summer.

A spokesperson for the California Film Commission said the Daniels’ film was withdrawn from the program after receiving its initial assignment and “reapplied.” The state will now pay 35.8% of eligible costs instead of 19.5%. The number of employees for this project has not changed.

The next “Jumanji” will be the fourth film in total and the third since 2017, and filming is scheduled to begin in November. Scheduled for release in December 2026. Director Jake Kasdan said in a statement that he is “thrilled” that the film will be produced in California.

“I have long looked forward to the day when the California Film Incentive would help bring films like this home, and now that it has, I am so grateful that our films will be among the first to take advantage of the new program,” Kasdan said. “It takes hundreds of people with special skills to make these big popcorn movies, and California is home to some of the best people in the world.”

Gov. Gavin Newsom signed a major expansion of tax credits in June as the industry seeks to combat an industry-wide economic downturn that has seen production employment cut by 29% starting in 2022. Under the expanded program, the state would give $337 million annually to feature films and $412 million to television shows over the next five years.

Only eight big-budget feature films were produced in California in the most recent quarter, a 43% decrease compared to the same quarter in 2024, according to data from ProdPro.

Film production also fell by 33% in the UK and 6% in Canada in the third quarter of 2025 compared to the same quarter in 2024.

The United States remains the world’s largest hub for film production. But California has had to compete with states like Georgia, New Jersey, and New York in offering subsidies to attract films in the United States, while countries like Canada and the United Kingdom offer their own generous subsidies to attract films overseas.

Prior to this expansion, which took effect July 1, no project could earn more than $25 million in credits, and most projects were limited to $20 million. Under the new system, that cap rose to $48 million. In July, the California Film Commission awarded $42.8 million to a new Hulu series directed by Dan Fogelman.

Notable feature film projects in the latest assignments include: