Disney Receives Tax Credits for Two Upcoming Animated Films
Producing animated features can be quite the costly endeavor, but thanks to a fresh round of tax credits approved by the California Film Commission, the price tag for two of Disney’s upcoming projects just became a bit easier to stomach.
Not that a behemoth such as Disney is necessarily hurting for capital, but still, every little bit helps. The Commission published on Tuesday a list of 41 upcoming films to which it has conditionally granted tax credits as part of its “Film & Television Tax Credit Program,” an initiative designed to incentivize film production within the state of California.
The Commission selected three upcoming Disney projects as part of this round of awards, among them two animated features. The third is an unnamed 20th Century Studios live-action comedy, which received an $8.2 million credit.
‘Hexed’ & Untitled Pixar Film Awarded Tax Credits
An untitled Pixar project was among this round’s largest beneficiaries, receiving a $26.2 million credit. The film is expected to generate 669 in-state hires, per a spreadsheet published by the Commission.
We don’t yet know which future Pixar film this credit is helping to offset, but the company does have a few exciting projects in development. Gatto and Incredibles 3 are slated for 2027 and 2028, respectively, but given that they have…titles, they may not be the untitled film in question.
Photo: Pixar
A sequel to 2017’s Coco is also in the works, with a follow-up to 2001’s Monsters, Inc. rumored, as well. Original projects in development include the supernatural bazaar-set Ono’s Ghost Market and a musical set to be helmed by Turning Red and Elio director Domee Shi.
Walt Disney Animation Studios’ upcoming Hexed received an $18.5 million credit. The film, which is set to hit theaters on November 25, produced 773 in-state hires, per the Commission.
More on Disney’s ‘Hexed’
Photo: Disney
Hexed stars Hailee Steinfeld as Billie, a teen girl who discovers she has secret magical abilities. She finds that she can transport herself to the fantastical setting of Hexe, and the plot seemingly goes from there.
Rashida Jones, Tracey Ullman, and Stephen Fry also star in the film directed by Fawn Veerasunthorn and Jason Hand. Veerasunthorn previously co-directed 2023’s Wish for Disney, while Hand co-helmed 2024’s Moana 2.
Photo: Disney
Veerasunthorn also co-directed the recently announced Lilo & Scratch short film, which is set to debut this Thanksgiving alongside Hexed.
Animated films—particularly those produced by Disney—are natural fits for the California Film Commission’s tax credit program. According to The Hollywood Reporter‘s Winston Cho, the initiative mandates that 75% of a project’s budget be spent in the state to qualify for eligibility.
Animated features naturally see the bulk of their budgets spent in the state where they’re produced. Both Pixar and Walt Disney Animation Studios are headquartered in California, so production has long occurred there anyway.
As always, be sure to keep an eye on MickeyBlog for the latest on all things Disney.
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Feature Image Credit: Disney
