California Gives Millions in Tax Credits to ‘Jumanji’ and ‘Heat 2’

California has set aside $342 million in tax credits in a bid to jumpstart production of big-budget films, including a record $43.9 million for the next installment in the “Jumanji” franchise.

The state is also committing $37.2 million for “Heat 2” from Michael Mann, as well as $38.4 million for the next film from the Daniels, the Oscar-winning team behind “Everything Everywhere All at Once.” The Daniels’ film, from Universal, was already approved for $20.8 million in March, but thanks to the expansion of the state’s incentive program this summer, now finds itself the recipient of a nearly $18 million windfall.

The next “Jumanji” — the fourth overall, and the third since 2017 — is set to begin shooting in November. It is due for release in December 2026. In a statement, director Jake Kasdan said he is “thrilled” that it will be made in California.

“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.”

Gov. Gavin Newsom signed a major expansion of the tax credit in June, as the state seeks to counter an industrywide downturn that cut production jobs by 29% since 2022. Under the expanded program, the state will award $337 million to feature films and $412 million to TV shows each year for the next five years.

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

Film production was also down by 33% in the U.K. and 6% in Canada in the third quarter of 2025, compared to the same quarter in 2024.

The U.S. remains the largest global hub for film production. But California has had to compete with Georgia, New Jersey, New York and other states in offering subsidies to attract productions within the U.S. — while Canada, the U.K. and other countries offer their own generous subsidies to lure films overseas.

Before the expansion, which took effect on July 1, no project could get more than $25 million in credits, and most were limited to $20 million. Under the new system, that cap has risen to $48 million. In July, the California Film Commission awarded $42.8 million to a new Hulu series from Dan Fogelman.

The noteworthy feature film projects in the latest allocation include: