Lionsgate’s upcoming Michael 2 has received $30.8 million in tax incentives from the state of California, giving the sequel to this year’s Michael Jackson biopic a major boost as it moves closer to production. The film is one of 35 projects selected in the latest round of California’s film and television tax credit program, which is distributing a total of $226 million in incentives.
The new allocation makes Michael 2 the second-largest individual recipient in the latest round, behind an untitled Pixar animated film that received $40.1 million. Paramount’s untitled crime thriller follows with $29.3 million, while other projects receiving significant allocations include an untitled Disney live-action film, a Warner Bros. comedy and the upcoming Friday sequel.
The tax credit is particularly notable when compared with the support given to the original Michael. The first film received $21 million in California tax credits and went on to surpass $1 billion at the worldwide box office. Under the state’s expanded incentive program, Michael 2 will be eligible for a credit covering 35% of qualified production costs, compared with the 17.5% rate that applied to the first film.
The larger incentive reflects California’s broader effort to attract more film production back to the state. The latest round includes 28 independent projects alongside major studio productions, with the selected films expected to bring substantial production activity to California. According to the California Film Commission, the projects are projected to generate more than $1 billion in direct in-state production spending and employ more than 5,400 cast and crew members, in addition to more than 24,800 background actors.
For Michael 2, the award comes as Lionsgate continues developing the sequel following the enormous commercial success of the first film. The original Michael, directed by Antoine Fuqua and starring Jaafar Jackson as his uncle Michael Jackson, focused on the singer’s rise from his Jackson 5 years through the beginning of his solo career.
The sequel is expected to continue Jackson’s story, although the exact period it will cover has not been fully detailed. Lionsgate previously indicated that production could begin toward the end of 2026 or in early 2027, with the studio targeting a theatrical release toward the end of 2027 or in the first half of 2028.
There is also previously filmed material that could be incorporated into the sequel. Lionsgate Motion Picture Group chairman Adam Fogelson said in August that several sequences, including major musical numbers, had already been filmed and were likely to be used in the follow-up. The material was originally shot for the first film before changes to its story required parts of the production to be reworked.
The California incentives arrive at a time when the state is expanding its efforts to keep productions and film-related jobs within California. The latest production credits follow the state’s broader expansion of its film and television incentive program, which has already awarded numerous projects in 2026. California officials have promoted the program as a way to strengthen the state’s entertainment workforce and encourage productions to remain in the traditional Hollywood production base.
The latest round also includes several other recognizable projects. Among them is the untitled Last Friday sequel, which received $11.4 million and is expected to shoot in Southern California. Independent productions are also a significant part of the latest group, showing that the expanded program is supporting both large studio projects and smaller films.
For Michael 2, however, the $30.8 million award represents more than just another production incentive. It marks a larger level of California support than the original film received and comes after Michael became a billion-dollar global hit. With Lionsgate already working toward the next chapter, the tax credit brings the sequel another step closer to returning Michael Jackson’s story to the big screen.
