BRIC Foundation and Titmouse Foundation also partnered on ‘Reclaiming California’s Role in Global Animation,’ which substantiates the significant impact of the Animation Industry on job growth and innovation, and makes the case for modern animation tax credits.
As the animation industry lobbies to be included in proposed updates on two California motion picture tax credits bills (Assembly Bill 1138 and Senate Bill 630), The Animation Guild (TAG), BRIC Foundation, and Titmouse Foundation have partnered with CVL Economics to release Reclaiming California’s Role in Global Animation. With support from the Entertainment Industry Foundation, Gnomon, Fourthwall Management, Group Effort Initiative, West Studio, the Gotham Group, and Women in Animation, the report details the negative impact on California’s once-dominant animation and VFX industries, in part due to production incentives that are now offered in 30 U.S. states and nearly every major global production hub.
A recent example of this shift is Disney’s Moana 2. If it had been produced in California like the original film, Moana 2 would have supported 817 jobs and generated more than $87 million in wages within the state.
“Studios aren’t just outsourcing animation work; they’re baking it into the development process,” said Adam J. Fowler, Economist and founding partner of CVL Economics. “That’s a structural shift, and California’s failure to respond is costing us thousands of jobs.”
Key findings include:
- California is losing ground. 30 U.S. states and nearly every major global hub now offer tax credits for animation. California does not — despite being the birthplace of the industry.
- Post-production collapse. Since Canada introduced its film tax credit in 1995, California’s post-production workforce has shrunk by nearly 60%.
- High-value work is fleeing. Animation jobs in California have declined 4.7% since 2019, while British Columbia’s have surged +72% due to aggressive incentive policies.
- Global market, local losses. Animation is a $400 billion industry powering streaming, gaming, VFX, and virtual production. As global demand grows, California’s market share continues to fall.
While below-the-line animation workers earn $48.87/hour on average, well above the state average, they are often the first to be outsourced when other regions offer better incentives. Loss of work due to global tax incentives has dramatically impacted animation creatives in California, forcing them into leaving the state or pursuing jobs outside their careers.
“Most of my creatives have been out of work for over a year,” said Alison Mann, president of Fourth Wall Animation and co-founder of BRIC Foundation. “Some of my most talented storyboard artists and directors have had to take unrelated jobs at places like Lowe’s just to make ends meet. Meanwhile, my international clients, who benefit from more robust government funding and incentives, continue to successfully launch independent features.”
TAG president Jeanette Moreno King has visited lawmakers in Sacramento over the last few months to lobby for these important tax incentives that can reignite the animation industry in California.
“Behind every animated show or movie are thousands of artists, writers, and technicians who make the magic happen — and they’re being left behind,” explained King. “Our members are ready to work, but without competitive tax incentives, those jobs are going elsewhere. This report shows just how urgently California needs to act to protect its animation workforce and remain a global leader.”
The authors of the report recognize this is a critical moment for California and recommend several important policy recommendations, including:
- Level the playing field: Make animation and VFX fully eligible for tax credits, as done in New York, Georgia, British Columbia, and across Europe.
- Keep post-production local: Eliminate per-project caps on in-state VFX spending to protect and grow high-wage jobs.
- Carve out space for animation: Create a dedicated allocation within California’s $750M film tax credit so animation isn't crowded out by live-action productions.
Source: The Animation Guild
Journalist, antique shop owner, aspiring gemologist—L'Wren brings a diverse perspective to animation, where every frame reflects her varied passions.
