Michael Mann’s ‘Heat 2’ Nabs Tax Credits to Shoot in California

Michael Mann’s Heat 2 and the next installment to Sony Pictures’ Jumanji headline the first round of movie subsidies to Hollywood after California’s historic expansion of the entertainment tax credit program, a bid to revitalize production in the state.

In total, 52 films will get $334 million in incentives for shooting in California, the film commission announced on Tuesday. They’re projected to generate $1.4 billion in economic activity across businesses with ties to the entertainment industry and employ 8,900 cast and crew members. Most of the filming will take place in Los Angeles, where shooting levels are at an all-time low.

This allotment of subsidies saw twice as many bids for tax credits compared to the same application window last year, according to the film commission. The main changes to the program reflect its increased popularity: more than doubling the total cap from $330 million to $750 million; the 35 percent base credit; and increased accessibility to the incentive for independent films.

“Those projects would have gotten made but not here in California without our robust program and the changes that we made,” says California Film Commission executive director Colleen Bell. She adds, “We have slowly been losing our market share of entertainment production as other jurisdictions improve their competitiveness but, right now, we’re in a great position to not only curb runaway production but grow production here in the state.”

In a sign that some features may be returning to their cultural home, ten studio titles will be getting credits to shoot in the state. They include Sunday (Blumhouse), The Fifth Wheel (Netflix) and untitled movies from NBCUniversal, Warner Bros. Pictures, Paramount Pictures and Apple Studios, which are projected to collectively spend roughly $340 million in the state across 296 shoot days. Netflix had two titles that were selected to nab $34 million in credits, trailing only the production vehicles for Heat 2 ($37.2 million) and Jumanji ($43.9 million), NBCUniversal ($38.4 million) and Warners ($39.6 million).

“I have long looked forward to the day when the California Film Incentive would help us bring movies like this one back home — and now that it does, I am so grateful that ours will be among the first to take advantage of the new program,” said director Jumanji Jake Kasdan in a statement. Adds Sony Pictures Entertainment chief executive Tom Rothman, “The resultant work will bring jobs and revenue into the state at a much needed time and will help the filmmakers make the very best film possible.”

The announcement comes a week after shooting levels in Los Angeles reached another all-time low during the three month-period from July to September, according to the latest report from film permitting office FilmLA. Most of the filming across the 52 movies that will get tax credits will take place in L.A., with Heat 2 planning 47 days of shooting in the region.

Also receiving subsidies: 42 independent titles, most of them being projects with budgets under $10 million. They include Epiphany, The Incredible Heist of Hallelujah Jones, Sun Baked, A Tree is Blue and Nightwatching.

“As Chair of Mayor Karen Bass’ Entertainment Industry Council, I know how important it is to create in a place that supports storytellers,” said Ellen Goldsmith-Vein, a producer on Epiphany (Bill Murray, Kristen Wiig) in a statement. “California has been home to my career from the start, and being able to make Epiphany here means I get to work with the best crews in the business while keeping jobs in my community.”

In the round of incentives announced in March, a record 51 films were tapped to receive credits to shoot in California. The total marked the highest number of titles selected in a single allotment of incentives. The bulk of the allocation was directed toward a slate of 46 independent movies.

Another trend to watch will be productions opting to shoot in areas outside of L.A., some of which offer an additional bump on qualified expenditures. The projected announced on Tuesday will shoot for a record 511 days outside of the region.

“This round of awards demonstrates the outstanding scope of our program. We are welcoming projects from major franchises to independent films led by visionary artists,” Bell said in a statement. “There’s real momentum building. With 52 new projects, we’re seeing storytelling thrive once again, creating thousands of jobs and supporting local businesses in communities across the state. California’s film industry is not just rebounding, it’s redefining what’s possible.”