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By India McCarty
Animated movies are getting a larger share of California’s film incentives, with $71 million going towards four different projects.
“DONKEY, the spinoff of the SHREK series, will claim $19.2 million, while Disney’s HEXED will collect another $18.5 million,” Variety reported. “Two other untitled features, one each from DreamWorks and Pixar, account for the other $34 million.”
This news comes after the 2025 announcement that California had expanded its production incentive to $750 million a year, and was opening the program up to animated movies and TV shows.
Animation is taking up 59% of California’s latest studio film tax credits:
• “Donkey”: $19.2M
• Disney’s “Hexed”: $18.5M
• Untitled DreamWorks film
• Untitled Pixar filmRelated: DONKEY Spinoff Officially Set for June 2028 as Eddie Murphy Returns to SHREK Universe
Together, the four animated features will receive $71M of the $122M awarded to major studios.… pic.twitter.com/1G6XK4fpKn
— Variety (@Variety) July 7, 2026
“California has long set the standard for entertainment production, creating good-paying jobs and showcasing the creativity and innovation that define the Golden State,” a statement from California Governor Gavin Newsom announced. “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.”
Colleen Bell, Director of the California Film Commission, added, “This round marks the close of the first year of Program 4.0 and reflects the strong demand we continue to see for production in California. With 41 new film projects approved across a wide range of budgets, we are seeing the program work exactly as intended — bringing production, jobs, and economic opportunity to communities throughout California.”
“From major studio features and independent films to animated projects, the diversity of productions choosing California speaks to the strength of our industry and the unmatched talent, infrastructure, and creative ecosystem that exist here,” she continued. “We look forward to building on this momentum in year two.”
The $71 million is a little over half of the California Film Commission’s latest round of awarded funding, totaling $122 million. Two live-action movies are rounding out the balance — $42 million to an untitled Warner Bros. movie and $8.2 million for an untitled comedy from 20th Century Studios.
An additional $65 million was handed out to independent movies, including GINGERBREAD MEN, from Ben Affleck and Matt Damon’s Artists Equity. It received $7 million.
“We received the approval letter informing us that GINGERBREAD MEN was accepted into the California Film and Television Tax Credit Program,” Affleck said in a statement. “Under the program, we have been able to make the films ARGO, UNSTOPPABLE, and ACCOUNTANT 2. Our upcoming film, GINGERBREAD MEN, will be filmed in Los Angeles, California — close to our company office and the best and most experienced cast and crew, vendors, and service providers. Let’s continue to keep the California film industry alive with the help of the California Film and Television Tax Credit Program!”
This new round of funding is California’s latest move to bring productions back to California.
Read Next: Goodbye Hollywood? Why Productions Are Leaving California—And How to Get Them Back
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