Disney's "Hexed" and Other Animated Titles Among Approvals for CA Tax Incentive as Program Rules Expand

The upcoming film from Walt Disney Animation Studios, Hexed, as among the list of movies that have been approved for California's Film and Television Tax Incentive program now that the eligibility rules have been expanded.

What's Happening:

• TheWrap is reporting that the upcoming film from Walt Disney Animation Studios, Hexed, is one of the 41 new projects approved for California's expanded tax incentive program.
• These new projects bring the total number of recipients to 170 in the first year since the program's dramatic expansion.
• Hexed, and other projects like Dreamworks' Donkey, are on the list thanks to new policy changes that were approved by California legislators last year, which now allow animated projects to qualify for the incentive for the first time.
• In fact, it seems animation ight be best positioned to take advantage of the new tax incentives, and will likely continue to do so. Both Walt Disney Animation Studios and Dreamworks are based in Southern California but have other studio locations for production work located in Vancouver and other foreign locations.
• Similar to Hexed and Donkey, Pixar Animation Studios - located in Emeryville near San Francisco - has also reportedly received a production incentive for an untitled upcoming project.

What They're Saying:

• Alan Bergman, Chairman of Disney Entertainment Studios: "For over a hundred years, California has been home to not only The Walt Disney Company but also an incredibly talented community of filmmakers, artists and production professionals. We are happy to have a number of projects selected for the state’s Film & Television Tax Credit Program and are grateful to the California Film Commission, Governor [Gavin] Newsom, and the legislative leaders who have worked to strengthen opportunities for production here as we continue to invest in California’s world-class creative workforce.” 

Some Taxing Information:

• California's Film andTelevision Tax Credit Program is designed to encourage productions to film in the state rather than relocating to competing jurisdictions like Georgia, New York, Canada, or even overseas. The program has a mission of preserving entertainment industry jobs, supporting local vendors, and maintaining California's position as the center of the film and television industry.
• Previously, the California Film Commission's tax credit was almost entirely geared toward productions involving principal photography (live-action filming). Because animated productions don't have principal photography, they were explicitly excluded from earlier versions of the program.
• That changed with new Legislature passed in 2025, and Animation is now included as a qualified production category. Now, Animated Feature Films, Animated TV Series (with episodes averaging at least 20 minutes) and projects in 3D and traditional 2D animation are all covered.
• With animation eligible, the hope is that more animation artists will be employed in-state, and encourage studios to perform more production work in California instead of outsourcing it.
• While major studios like Disney, Pixar, DreamWorks, Warner Bros., and others are located in California - more labor intensive animation has been outsourced to studios in Canada, Ireland, France, Australia, and others.