California Awards 'Michael 2' $31 Million in Tax Credits

Lionsgate's "Michael 2" will receive $30.8 million in California tax credits, the largest award to a named studio project in the California Film Commission's latest round of approvals.

The sequel is one of 35 films sharing $226 million in state incentives. The original "Michael" collected $21 million in credits before earning more than $1 billion at the box office.

The state's program has grown more generous since the first film. Productions now receive 35% of qualified costs, up from 17.5% when the original was made.

Who else gets state money?

Warner Bros. and Paramount — now divisions of Skydance — will collect $13 million and $29.3 million respectively for untitled films. New Line Cinema takes $11.4 million for its upcoming "Friday" sequel, bringing Skydance's total this round to $53.7 million.

Pixar claims the largest single allocation: $40.1 million for an untitled film. That follows a $28.7 million award in June for another untitled Pixar project. Disney collects an additional $30 million for two more untitled projects this round.

The round also funds 28 independent films, including an untitled project from Mike Mills and "Leaves of Glass," set in Los Angeles's Chicano communities.

What did Ice Cube say?

New Line's deal with Ice Cube for "Last Friday" was announced roughly 18 months ago, and Nia Long recently confirmed the project is still in development. The film commission lists it as "Untitled Last Friday Sequel."

"I'm thrilled to produce Untitled Last Friday Sequel right here in Southern California, where our cast and crew lives," Ice Cube — officially O'Shea Jackson Sr. — said in a release. "This story has been part of the fabric of South Los Angeles since our first film 31 years ago, so producing the film here with more than 180 local cast and crew underscores the value of the California production incentive program. We're thankful for the opportunity to stay local."

"Leaves of Glass" producers Victoria Alonso and Tom Culliver said in a statement: "We are incredibly excited to showcase a side of Los Angeles rarely seen on camera, and work with the greatest crews in the world."

With the credit rate now doubled and Pixar, Skydance and Lionsgate all drawing nine-figure support across recent rounds, California's incentive program has become a decisive factor in where major studio and independent productions choose to shoot.