‘The Mandalorian’ Film Secures $21M Tax Credits for California Shoot as Disney Dominates Incentives

California’s Film and TV tax credit program is seeing a surge in feature films vying for tax credits, with notable productions investing significantly to secure major incentives.

Headlined by ‘The Mandalorian & Grogu,’ five studio projects have been chosen to participate in California’s tax credit program, with Lucasfilm’s title receiving a substantial $21.8 million in tax credits. This marks only the fifth movie in the program’s history to receive over $20 million in credits, with three such films selected in the past two years.

Disney emerges as the top beneficiary in this round, receiving $28.1 million in conditional tax credits for its projects. Amazon Studios also secures $14.4 million for two ventures, including ‘The Accountant 2’ led by Ben Affleck. Notably absent from the list are Netflix and Warner Bros., which have historically led in credit allotments.

As California seeks to attract more productions by offering increased credits, some projects are setting new records in qualified expenditures, determining the amount of credits they receive.

Jon Favreau’s ‘The Mandalorian & Grogu’ is set to make history with an estimated spend of $166 million, the highest in the state’s tax incentive program. This surpasses previous records, including Quentin Tarantino’s project and Lionsgate’s Michael Jackson biopic.

Unlike states like Georgia, California only considers the qualified spending portion for credits, excluding talent compensation. Last year, the state passed a measure making the credits refundable starting in 2025 to curb runaway production.

Lucasfilm expresses enthusiasm for shooting ‘The Mandalorian’ in California, highlighting collaboration with the California Film Commission to generate jobs and utilize local talent.

Other studio projects receiving tax credits include Disney and 20th Century Studios’ untitled films, along with Amazon Studios’ ‘Mercy’ and ‘The Accountant 2.’

Independent films also benefit, collectively receiving $13.1 million in credits for generating $114 million in qualified spending, with significant contributions to below-the-line wages.

With 59 applications received, the California Film Commission plans to open the next application period for features in August. Submissions for TV series are currently open, signaling continued growth in California’s film and TV production landscape.