‘Michael 2’ Lands a $31 Million California Tax Credit as the Jackson Biopic Sequel Moves Forward
Lionsgate’s Michael Jackson biopic ‘Michael’ became one of the biggest box office stories of the year. Starring Jackson’s nephew Jaafar Jackson as the King of Pop, the film earned more than $1 billion worldwide on a reported $200 million budget.
California helped make it happen. The first film received about $21.1 million in state tax credits, and at the time, its $120 million in qualified in-state spending was the largest of any project in the program’s 14-year history.
Now the state is supporting the sequel too. The California Film Commission announced that ‘Michael 2’, the working title for Lionsgate’s follow-up, will receive $30.8 million in tax credits in the latest funding round.
The higher amount reflects changes to California’s incentive program since the original was made. The tax credit now covers 35% of qualified costs, double the 17.5% rate the first film received.
The expansion also added a new post-production credit and established guidelines for AI usage. Lionsgate hasn’t disclosed a budget for the sequel, and it’s notable that around 30% of the film was reportedly already shot back in 2023.
The sequel landed one of the largest awards in this round. An untitled Pixar project received the biggest credit at $40.1 million, with ‘Michael 2’ in second place. An untitled crime thriller from Paramount came third with $29.3 million. Disney also secured funding for 2 more untitled projects, along with a 20th Century horror film and a Warner Bros. comedy.
His story begins. The official trailer for MICHAEL – in theaters and IMAX April 24. https://t.co/DfGJNcuXU2
— Michael (@michaelmovie) February 2, 2026
Altogether, the commission approved 35 feature films for about $226 million in incentives. Those productions are expected to spend roughly $635.3 million across 1,049 shoot days in the state.
New Line’s ‘Last Friday’, the latest entry in Ice Cube’s ‘Friday’ franchise, received $11.4 million. Ice Cube said the film will employ more than 180 local cast and crew members in Southern California, where the story has its roots.
The list also includes 28 independent films, among them an untitled project from Mike Mills and ‘Leaves of Glass’, set in Los Angeles’ Chicano communities. Nicolas Winding Refn’s ‘Maniac Cop’ also earned a spot.
The awards come at a difficult time for Hollywood’s home state. Production has increasingly left California for other states and countries, reducing shoot days and putting pressure on local workers.
Film Commission director Colleen Bell praised the latest round for combining independent filmmaking with iconic stories tied to California’s cultural legacy. She said the program aims to keep jobs, investment and production in the state.
According to the commission, 179 projects approved since July 2025 have generated $7.2 billion in California production spending. That includes $4.7 billion in qualified expenditures and $2.87 billion in qualified wages.
State officials aren’t the only ones focused on keeping production in the US. A group of California Democrats and union leaders recently campaigned for a federal film incentive, hoping to pass it by the end of the year.
That proposal could combine with state credits to create even bigger incentives. Supporters argue that, together, the programs could make the US more competitive with other countries.
Lionsgate expects the sequel to reach theaters sometime between late 2027 and early 2028. Plot details haven’t been revealed, but the success of the first film has made the follow-up one of the studio’s biggest priorities. With strong box office numbers behind it and fresh state support, ‘Michael 2’ appears well on its way to the big screen.
Are you excited to see ‘Michael 2’ after the huge success of the first movie?
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