New Jumanji Sequel Secures Major California Tax Credits, Boosting Film Production in the Golden State
In a move that’s set to bring the wild adventures of Jumanji back to life on the big screen, a new installment in the beloved franchise has been awarded substantial California tax credits. This development not only promises thrilling entertainment for audiences worldwide but also underscores the state’s aggressive push to reclaim its crown as Hollywood’s epicenter through enhanced incentives for film production.
The announcement, made by the California Film Commission on Wednesday, highlights the project’s inclusion in a competitive pool of 24 approved productions, totaling over $330 million in qualified expenditures eligible for tax breaks. The Jumanji sequel, tentatively titled Jumanji: The Next Level Beyond, is expected to inject millions into local economies, from Los Angeles studios to Northern California locations, signaling a renaissance for California‘s film production industry amid fierce global competition.
This isn’t just about one movie; it’s a testament to how tax credits are luring blockbuster entertainment back home. With stars like Dwayne “The Rock” Johnson and Karen Gillan rumored to return, the film could generate buzz rivaling its predecessors, which grossed over $1.6 billion combined at the box office.
Jumanji Franchise Revives with State-Backed Funding Push
The Jumanji saga, which originated from Chris Van Allsburg’s 1981 children’s book and exploded into pop culture with Robin Williams’ iconic 1995 portrayal, has seen a modern resurgence since 2017. The Dwayne Johnson-led reboot, Jumanji: Welcome to the Jungle, shattered expectations by earning $962 million worldwide, followed by The Next Level in 2019, which added another $800 million to the franchise’s coffers. Now, producers at Sony Pictures are gearing up for what could be the fourth chapter, leveraging California‘s tax credits to film key sequences in the state.
According to sources close to the production, the new film will explore uncharted territories within the game’s mystical world, incorporating advanced CGI and practical effects to heighten the stakes. “We’re thrilled to bring Jumanji home to California, where the magic of Hollywood can truly come alive,” said a Sony spokesperson in a statement to entertainment outlets. This return is particularly poignant, as previous entries were partially shot in Hawaii and Atlanta to capitalize on other states’ incentives.
The tax credits allocation for the Jumanji project is estimated at around $20 million, based on a qualified spend of over $100 million in California. This funding covers everything from set construction in the San Fernando Valley to hiring local crew members, ensuring that the film production ripple effect benefits thousands of jobs. In fact, the franchise’s previous films employed over 5,000 workers per installment, and insiders predict similar numbers here, bolstering entertainment sectors from catering to post-production houses.
Historically, Jumanji‘s evolution mirrors the ups and downs of the movie industry. The original film’s practical effects, like the stampeding animals, wowed audiences in an era before digital dominance. Today’s version blends nostalgia with high-octane action, appealing to multigenerational viewers. By securing these tax credits, the project not only sustains the franchise’s momentum but also positions California as the go-to hub for such ambitious entertainment ventures.
Behind-the-Scenes Details on the Upcoming Sequel
Filming is slated to commence in early 2024, with principal photography targeting iconic California landmarks like the redwood forests for jungle scenes and urban Los Angeles for modern-day sequences. Director Jake Kasdan, who helmed the last two films, is returning, promising to expand the ensemble cast with fresh faces to embody new game avatars.
One key aspect is the integration of diverse talent; the production has committed to hiring at least 40% local California residents, aligning with state guidelines for tax credits. This includes VFX artists from companies like Industrial Light & Magic, based in the Bay Area, who will craft the film’s fantastical elements. “The Jumanji world is limitless, and filming in California allows us to tap into unparalleled resources,” Kasdan shared in a recent interview with Variety.
Economically, the project is a boon. A 2022 study by the Motion Picture Association revealed that every dollar spent on film production in California generates $2.60 in economic output, including tourism from film sites. For Jumanji, this could translate to over $260 million in total impact, reinforcing the entertainment industry’s role as a pillar of the state’s $3 trillion economy.
California’s Tax Credit Program Expands to Lure Blockbusters Home
California‘s film tax credits program, launched in 2009 and supercharged in 2020 with an annual budget of $330 million, has become a lifeline for an industry battered by the pandemic and runaway productions. Previously capped at $100 million yearly, the expansion addresses the exodus of shoots to locales like Georgia and Canada, where incentives can reach 30% or more.
The program’s latest round, announced this week, approved 24 projects out of 111 applications, covering independent films, TV series, and tentpole movies. Jumanji‘s inclusion alongside heavy-hitters like a Marvel Studios feature and a new season of The Mandalorian demonstrates its broad appeal. “These tax credits are an investment in our creative economy,” Governor Gavin Newsom stated during the reveal event in Los Angeles. “By keeping productions in California, we’re creating jobs and showcasing our state’s unparalleled talent pool.”
Statistics paint a compelling picture: Since the program’s inception, it has supported over 1,000 projects, generating 175,000 jobs and $26 billion in economic activity. For film production, the incentives cover up to 25% of qualified in-state spending on wages, below-the-line costs, and music scoring. In the entertainment realm, this has led to a 15% uptick in local shoots post-2020, per data from FilmLA, the nonprofit that permits most Los Angeles filming.
Critics, however, note challenges. The program prioritizes diversity and inclusion, requiring projects to meet criteria like hiring from underrepresented groups. While Jumanji producers have pledged compliance, some independents complain the process is overly bureaucratic. Nonetheless, the benefits are undeniable, especially for California‘s entertainment ecosystem, which employs over 700,000 people statewide.
Comparing Incentives: Why California Edges Out Competitors
- Georgia’s Edge: Offers up to 30% transferable tax credits, attracting $4 billion in annual film production. However, it lacks California‘s infrastructure and star power.
- New York’s Draw: Provides 30% on qualified expenses, but focuses more on TV; California excels in blockbuster entertainment.
- Canada’s Appeal: Low costs and 16-25% rebates, yet logistical hurdles for U.S. crews make California‘s proximity a winner for projects like Jumanji.
This competitive landscape has driven California to innovate, with recent additions like credits for visual effects and streaming content, ensuring it remains a top destination.
High-Profile Projects Flood California’s Film Incentive List
The Jumanji sequel isn’t flying solo; it’s part of a star-studded slate that includes a live-action adaptation of Avatar: The Last Airbender sequel series and an untitled action thriller starring Chris Hemsworth. These projects collectively qualify for $90 million in tax credits, highlighting California‘s resurgence as a film production powerhouse.
Take the Avatar series, for instance: Produced by Netflix, it will utilize California soundstages for its elemental bending spectacles, employing hundreds of local animators. “Bringing these stories to life in California fosters collaboration like nowhere else,” noted showrunner Albert Kim. Similarly, Hemsworth’s film, directed by an Oscar winner, promises explosive set pieces filmed in the Mojave Desert, blending entertainment spectacle with regional pride.
Independent voices are also amplified. A queer romance drama and a documentary on climate change round out the list, each receiving up to $5 million in incentives. This diversity ensures the tax credits program isn’t just for big-budget Jumanji-style fare but supports the full spectrum of entertainment. Data from the California Film Commission shows that 40% of approved projects are diverse-led, up from 25% in 2019.
The influx has practical implications: Studio backlots in Burbank and Culver City are booking solid through 2025, with rental rates stabilizing after pandemic spikes. For film production vendors, from costume designers to drone operators, this means steady work. One grip technician in Van Nuys shared, “Jumanji‘s return means rigs and lights for months—it’s a game-changer for families like mine.”
Spotlight on Diverse Voices in the Approved Slate
- Indie Gem: A film about immigrant experiences in California, directed by a first-time Latina filmmaker, secures $3 million to shoot in real communities.
- TV Revival: A rebooted 90s sitcom gets $10 million, promising nostalgic entertainment with modern twists.
- Animation Boost: A family-friendly animated feature, echoing Jumanji‘s adventure vibe, taps Bay Area talent for $15 million in credits.
These selections underscore how tax credits democratize film production, making California a inclusive hub.
Economic Ripple Effects from Jumanji’s California Comeback
Beyond the silver screen, the Jumanji production is poised to stimulate California‘s economy in multifaceted ways. With a budget exceeding $150 million, much of it funneled through local channels, the project could create 2,500 direct jobs, from script supervisors to stunt coordinators, and 4,000 indirect ones in supporting industries.
A report by the Entertainment Partners consultancy estimates that film production incentives like these yield a 9:1 return on investment for states, through sales taxes, hotel bookings, and real estate. For California, where entertainment contributes $120 billion annually, retaining projects like Jumanji prevents a brain drain to other regions. “Every blockbuster that stays home multiplies opportunities for small businesses,” explained economist Dr. Maria Lopez in a panel discussion at the announcement.
Local impacts are tangible: In Los Angeles County, film-related tourism alone generates $1.5 billion yearly, with fans visiting Jumanji-inspired sites. Northern California benefits too, as location scouts eye Humboldt County for lush backdrops, boosting rural economies. Environmentally, the program mandates sustainable practices, like electric generators on Jumanji sets, aligning with California‘s green initiatives.
Challenges persist, including housing shortages for crew amid high living costs, but unions like IATSE are advocating for better wages tied to tax credits. Overall, the entertainment sector’s health is improving, with unemployment dropping to 4.2% from 12% in 2020.
Job Creation Breakdown for Jumanji and Peers
Here’s a snapshot of projected employment from the approved projects:
- Direct Film Jobs: 15,000 across all 24, with Jumanji leading at 2,500.
- Indirect Support: 30,000 in logistics, catering, and transport.
- Diversity Hires: 25% women and minorities mandated, fostering equity in film production.
- Long-Term Gains: Training programs for 1,000 apprentices, building future entertainment talent.
Future Horizons: How Tax Credits Shape Hollywood’s Next Era
As Jumanji gears up, the broader implications for California‘s film production landscape are profound. With streaming giants like Netflix and Amazon investing heavily, the tax credits program is evolving to include digital content, potentially approving 30 projects next year. This could see more franchises, from sci-fi epics to rom-coms, calling California home.
Industry experts foresee a hybrid future, blending theatrical releases with OTT platforms, where incentives play a pivotal role. “Jumanji‘s success could inspire a wave of family entertainment staying local,” predicted analyst Sarah Chen of Deloitte. Legislative talks are underway to raise the cap to $500 million by 2025, addressing applicant backlogs.
For global audiences, this means richer storytelling rooted in California‘s diverse fabric. The Jumanji team is already scouting international co-productions, but the core remains state-bound. As production ramps up, expect trailers teasing epic quests, fueling hype and shares across social media. Ultimately, these tax credits aren’t just fiscal tools—they’re the bridge keeping Hollywood’s heartbeat in the Golden State, promising an exciting decade for entertainment innovation.
