Michael 2 Gets $30.8M California Tax Credit
Lionsgate's 'Michael 2' will receive $30.8 million in California tax credits in the state's latest funding round, which totals $226 million across 35 films, as reported by Variety on 7 October 2026. The sequel was among the projects approved by the California Film Commission in that round. The commission approved 35 films.
The award is a rebate on local spend. Productions that shoot in California and pay workers there can claim back a share of what the commission calls qualified costs, meaning approved wages and local bills. The current rate is 35%.
The first 'Michael', Lionsgate's biopic about pop star Michael Jackson, received $21 million under an earlier version of the programme at 17.5%. It logged about $120 million in qualifying expenses in the state, the highest total in the programme at that time, according to the Los Angeles Times in March 2023. The higher rate explains much of the increase for the follow-up.
Other studios also secured support in this round. Disney's Pixar took the largest single award, $40.1 million for an untitled film, with another $30 million for two further untitled Disney projects. Paramount landed $29.3 million for an untitled film, Warner Bros. took $13 million for an untitled film, and New Line Cinema received $11.4 million for a new 'Friday' sequel.
Twenty-eight of the 35 awards went to independent films, leaving seven with the major studios. The commission publishes each award with expected in-state shoot days, jobs created and qualifying spend. The structure favours productions that hire local labour and use local suppliers.
California has expanded its screen incentives to keep production at home. In its first year, the current system, known as Program 4.0, drew 170 projects expected to generate more than $6.6 billion in direct production spending in the state, according to the California Film Commission. Applications rose 82% on the prior year. FilmLA data cited by the commission also pointed to a lift in Los Angeles television work, with drama shoot days up more than 55% in the second quarter against the first.
For audiences, this means the money trail stays visible. Tax files decide where cameras go long before trailers arrive. What makes this stand out is the mix. California is backing a Jackson sequel, animation, comedy and dozens of independents from the same pot.
