California once dominated global animation, but its competitive position has eroded dramatically. Between 2010 and 2023, the state's share of top-grossing animated films plummeted from 67% to 27%, while animation employment declined nearly 5%—even as British Columbia posted 72% job gains fueled by aggressive incentives. Post-production employment in California has fallen 58% since 1990. Unlike 30 other U.S. states and major international competitors, California historically excluded animation from its film tax credit program, creating structural disadvantage. With the global animation market projected to reach $896 billion by 2034, stakeholders needed rigorous analysis to inform urgent policy modernization efforts.

CVL Economics partnered with industry stakeholders to develop a comprehensive evidence-based advocacy framework. The team documented California's declining market share through original data analysis and quantified economic consequences of production flight—demonstrating that a single animated feature like Moana generates over 800 jobs and $178 million in state GDP. The engagement surveyed 648 animation professionals to identify vulnerable job categories and outsourcing patterns, benchmarked incentive structures across competing jurisdictions, and evaluated proposed updates under SB 630. Policy recommendations addressed funding allocations, eligibility thresholds, and VFX integration to ensure incentives reflect modern animation pipeline realities.