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Historic Tax Incentives for Animation Continue

Kim Fay / April 24, 2026

TAG Newstax incentives / no comments

This week, California Governor Gavin Newsom announced the second round in the state’s newly expanded Film & Television Tax Credit Program. Among the recipients are three animated feature films: The Simpsons Movie 2 (20th Century Studios); Phineas and Ferb (Disney Entertainment Television), and an untitled project from DreamWorks Animation.  

This is the first time that animated feature films have been included in California’s tax incentive program. In addition to this, last month, the initial round included animated TV series for the first time: the Rick and Morty spinoff President Curtis and the Family Guy spinoff STEWIE. None of this could have been achieved without the diligent work of The Animation Guild and its members, and an investment by the union to speak directly with state legislators about the importance of tax incentives to keep jobs in California.

“We are now seeing the fruits of our labor by TAG’s Animation Incentive Task Force with these multiple animated projects receiving California Film Commission approval so far this year,” says TAG Field Representative and Political Coordinator Leslie Simmons, who provided staff support for the task force. “All but one of the productions approved are union, bringing close to 700 jobs to the state, according to the California Film Commission report.”

Approved by the previous TAG Executive Board in early 2025, the AI Task Force was formed to advocate for animation to be included in the existing tax credit program. A dedicated group of members met weekly to discuss the ever-evolving campaign with the Entertainment Union Coalition. They flew up to Sacramento, spoke at hearings on the bill and expansion, and met with lawmakers in the State Capitol, as well as in their local offices.

“It’s incredible to see this round of animated projects selected,” says Marissa Bernstel, a Trustee on the current TAG Executive Board and member of the task force. “It wasn’t until this year that animation would even qualify for the tax credit program, which is something TAG worked very hard to change. Studios have been chasing animation tax credits in other states and countries for years, so it’s incredibly rewarding to see them use California’s for the very first time! Productions must spend a minimum of 75 percent of their budget in California to qualify—so when I see these animated projects and the scope of the work, I just imagine how many TAG members will be positively impacted. The results feel very real, and I’m excited to see what future employment opportunities the incentive inspires.”

“I am thrilled to see the culmination of years of advocacy by the Guild and our allies,” adds Jeanette Moreno King, TAG’s President Emeritus, current Executive Board Secretary, and task force member. “This is more than just tax credits; it’s about keeping hundreds of world-class artists and technicians home in California where they belong and securing California’s future as the premier destination for animation production. This is a massive victory for every artist working in our state today.”

“[This is] evidence that when we come together in solidarity and fight for something as important as this, we win!” says Simmons. 

TAG’s Animation Task Force continues its work, now turning its focus to a federal film and TV incentive for the entire country. The task force is also expanding to New York to focus on the changes that need to happen with that state’s program to ensure more productions in film and TV, including animation, bring work to our members there. “We are committed to advocating for TAG members everywhere, and in bringing work back to the country, as well as California, New York, Texas, and beyond,” says Simmons.  

TAG Members interested in joining the task force, especially those in New York, can sign up here: https://tinyurl.com/TAG-AITF

Following are the task force members who were chosen from a diverse range of TAG crafts and classifications:

Jessica Adams
Marissa Bernstel
Janna Bock
Lacey Chappel
Owen Dennis
David DePasquale
Susan Godfrey
Kim Hazel
Tara Johnson
Crystal Kan
Steve Kaplan
Arielle Kim
Jeanette Moreno King
Jason Mayer
Kiernan Sjursen-Lien
Jessie Slipchinsky
Bill Wolkoff

Leslie Simmons, TAG Field Representative and Political Coordinator, provided staff support.

Read the announcement from the governor’s office and more details at The Hollywood Reporter.

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