Lucasfilm’s “The Mandalorian & Grogu” is set to contribute approximately $166 million to California’s economy. This is a part of the state’s Film and Television Tax Credit Program, which added five big-budget projects and ten independent films to its program.
This production will be shot entirely in California, which is a first for the franchise. The below-the-line wages and qualified expenditures are expected to generate an estimated $166 million boost to the state’s economy. However, the overall spending for the project will be significantly more than its qualified spending, including above-the-line wages and other expenditures that do not qualify for incentives under California’s targeted tax credit program.
A spokesperson for Lucasfilm expressed excitement about working with the California Film Commission to create film jobs in California. “We are thrilled to be shooting the next Star Wars movie, The Mandalorian & Grogu, here in California,” The film will be directed by Jon Favreau and produced by Favreau, Kathleen Kennedy, and Dave Filoni. Production will begin in 2024. This is the first Star Wars theatrical movie since 2019’s Star Wars: The Rise of Skywalker.”
The California Legislature significantly increased its film and television production incentive in 2014, from $100 million to $330 million annually through the California Film and Television Tax Credit Program 2.0. This expansion aimed to retain and attract production jobs statewide. Eligibility was extended to various project types such as big-budget feature films, television pilots, and 1-hour television series for any distribution outlet. Program 2.0 introduced a “jobs ratio” ranking system, prioritizing projects based on their qualified spending, such as wages paid to below-the-line workers and payments made to in-state entities.
Program 3.0, launched in July 2020, introduced new provisions to further grow California’s entertainment industry. These included a pilot skills training program designed to facilitate access to career opportunities for individuals from under-served communities. Furthermore, Program 3.0 mandates projects to have written policies for addressing unlawful harassment and enhances reporting of above- and below-the-line cast and crew employment diversity data.
Governor Newsom signed Senate Bill 132 on July 10, 2023, extending California’s Film and Television Tax Credit Program for five years, through fiscal 2030-31. This extension builds upon the program’s successful track record of generating over $24 billion in economic output and supporting more than 188,000 cast and crew. Program 4.0, projected to create 60,000 jobs and attract $10 billion in investment, introduces new workforce diversity provisions, increased funding for the Film Commission’s Career Pathways Training Program, and implements the nation’s first Safety on Production Pilot Program. Furthermore, tax credits will become refundable for the first time since the program’s inception in 2009, beginning with the 2025-26 fiscal year, with Program 4.0 set to commence on July 1, 2025.
