Disney Leads Latest Round of California Film and TV Tax Credits With $128.8 Million Award

The Walt Disney Company was the top recipient in California’s latest round of film and television tax credits, securing $128.8 million in incentives to support multiple productions across the state.

The awards, announced by the California Film Commission, place Disney slightly ahead of Warner Bros. Discovery, which received $127.9 million. Together, the two companies account for a significant share of the latest funding, which is designed to keep production jobs and spending within California.

Disney Projects Drive Major Investment

Disney’s allocation is largely tied to projects under 20th Century Studios, which was awarded nearly $94 million in tax credits for four productions.

Among those is a project receiving approximately $48 million in incentives after relocating production from another state to California, highlighting the program’s role in bringing work back to the region.

The funding also supports the upcoming Family Guy spinoff centered on Stewie, which has received a two-season order. The animated series is among the first to benefit from recent updates to California’s tax credit program that expanded eligibility to include animated productions.

In total, Disney-backed productions in this round are part of a broader slate that will contribute to significant in-state spending and job creation.

Expanded Incentives Open Door for Animation

This round of tax credits includes animated series and competition shows for the first time.

This change would directly benefit companies like Disney, whose animation-focused projects can now qualify for incentives that were previously unavailable.

California Gov. Gavin Newsom emphasized the broader impact of the program on the state’s economy.

“California’s creative economy isn’t just part of who we are — it helps power this state forward,” Newsom said in a statement. “From the folks on the soundstage to the people designing the sets, these are jobs that anchor communities.”

Job Creation and Economic Impact

The productions tied to this latest funding round are expected to have a substantial economic footprint in California.

According to the California Film Commission, the 16 approved television projects, which include Disney’s are expected to:

• Generate approximately $871 million in qualified in-state spending
• Produce an estimated $489 million in wages
• Support thousands of jobs, including roughly 2,650 crew positions across participating productions

Combined, Disney and Warner Bros. Discovery productions alone are expected to account for about $695 million in spending within California, excluding above-the-line costs such as talent salaries.

Strengthening California’s Production Pipeline

Disney claims that the tax credits reinforce its continued investment in California-based production at a time when studios have increasingly shifted work to other states and countries offering competitive incentives.

The ability to secure substantial credits, particularly for animation and relocating productions, may mean Disney will keep more of its creative output anchored in Los Angeles and surrounding production hubs.

However, it is important to note that Disney has sent most of their big projects overseas to Australia and the UK based on huge tax incentives. They could keep working here, but they still choose to send it overseas for larger cast incentives.

If Disney were really interested in helping California and not themselves, they would have kept productions there, even if they lost tax credits.

If studios can only survive with tax incentives, maybe they aren’t all that viable to begin with. Honestly, it feels like rich studios are getting richer on taxpayer money for giving jobs to people in their area. It’s kind of scummy.