- $30.8M Tax Incentive: Lionsgate’s Michael 2 (working title) was awarded $30.8 million in California state tax credits as part of a $226 million incentive allocation across 35 films from the California Film Commission.
- Generous State Subsidy: Under California’s updated incentive guidelines, the tax credit covers up to 35% of qualified in-state expenditures for the sequel—doubling the 17.5% rate applied to the original biopic.
- Production Clock Ticking: Under the state’s 240-day window for studio feature films with qualified budgets over $100 million, Lionsgate potentially has until June 4, 2027 at the absolute latest to begin principal photography.
- Shooting Scope: Official state filings reveal the production is slotted for 55 shoot dates, 65 cast members, and a crew of 300 members.
Alright folks. We’ve finally got a promising update on the Michael biopic sequel, and it comes right as awards season is soft launching.
Per a recent report from Variety, Michael 2 (working title) is one of 35 films that will receive $226 million tax incentives in total in the latest round of approvals from the California Film Commission. This go-round, Lionsgate scored $30.8 million in state tax incentives, improving upon the $21 million the first film received.
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How Film Tax Credits Actually Work
Now, you may be wondering what this means, so let’s break it down a little further.
State film tax credits are financial incentives created by local governments to encourage studios to keep production local rather than taking jobs and spending out of state or overseas. Instead of handing a studio upfront cash, the state rebates a percentage—covering 35% of “qualified in-state expenditures” under California’s current program—back to the production. These qualified expenses cover local below-the-line crew wages, facility and soundstage rentals, equipment leases, catering, set construction, and vendor costs incurred directly within California.
Receiving this credit means Lionsgate has between 180 and 240 days to start production.
Typically the 180-day rule is a hard lock-in, but the California Film Commission grants an extended 240-day window specifically for “independent films with a qualified budget over $10 million” or “studio feature films with a qualified budget over $100 million.” Since the film definitely meets the latter requirement, that means it could qualify for that extra 60-day extension, putting the absolute last day to begin principal photography at June 4, 2027.
Additional information has the current shoot information as 55 slotted shoot dates, 65 cast members, and 300 crew members.
Awards Momentum & Part Two Expansion
In other news, Jaafar Jackson is officially being honored for his breakout lead performance in the first film. Announced by way of a video montage, the clip makes it clear that Jackson will be receiving major industry recognition at this year’s Newport Beach Film Festival as one of Variety’s 10 Actors to Watch. Arriving right at the official kickoff of awards season, the prestigious nod cements serious momentum for both Jackson and Lionsgate’s Michael biopic as a whole.
“The heart of MICHAEL is Jaafar Jackson. With no prior acting experience and two years of preparing for the role, he delivers one of the most extraordinary debut performances ever witnessed,” writes Decked Out VP Andrew Greene. “Only a real Jackson can play a Jackson, and Jaafar proves that in every scene. It’s been said before, but bears repeating, he doesn’t just imitate his Uncle Michael, he becomes Michael Jackson. He is absolutely sensational, a revelation who depicts the beautifully special, vulnerable, and mega-talented character of Michael Jackson perfectly.”
And with that, I hope Lionsgate truly understands the importance of a strong awards push, and how that can lead to an even stronger rollout for part two. It’s essential that part one is not forgotten in the midst of this, and it should definitely be put back in theaters to serve as a fresh reminder of the elite performances.
Featured Photo: Lionsgate
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