The sequel to Michael Jackson's most recent blockbuster biopic has taken a massive step forward in the form of a $31 million tax credit. The award comes as the studio works out how to continue a story Michael left unfinished. Antoine Fuqua’s biopic ended around the 1987 Bad tour, with Jackson already a global superstar but decades of his life still untouched.

As the sequel takes shape, its biggest advantage may be that the original already proved audiences wanted more.

Michael 2 is among 35 films selected for California’s latest production-incentive round. Lionsgate’s sequel received an allocation of $30.8 million, the second-largest award in the group behind an untitled Pixar animated film that received $40.1 million. The incentive arrives as Lionsgate works toward production. Motion picture chief Adam Fogelson previously said the studio was targeting late 2026 or early 2027 for filming, with a potential release toward the end of 2027 or in the first half of 2028. 

There is also an unusual head start. Fogelson said approximately 25% to 30% of the sequel has effectively already been shot during the original production, including several major musical sequences. Some material cut from the first film could therefore find its way into the follow-up. The trust lies in the estimation that , together with the remaining 34 awardees, Michael 2 is expected to generate more than $1 billion in direct in-state spending. (via Variety)

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The sequel’s commercial case, however, was established long before California came calling, and the first film supplied plenty of evidence.

The first film, Michael, became a theatrical phenomenon despite a difficult road to release and a sharply divided critical response. The biopic, which also doubled as a debut stage for Jafaar Jackson, opened to $97 million domestically and $217 million worldwide, setting the biggest opening weekend ever for a musical biopic. It now sits at $1 billion globally, making it one of 2026’s biggest box-office successes.

Audiences were dramatically warmer than critics. Rotten Tomatoes currently lists the film at 38% from critics, compared with a 97% audience score. That divide matters for Michael 2. The first film focused heavily on  Michael Jackson’s rise and music, while some of the most difficult chapters of his life were absent.

The sequel has a more complicated road ahead, even as its predecessor proved audiences would show up. With $31 million now attached to its California production, Michael 2 is gathering the practical pieces needed to become the next chapter of Lionsgate’s Jackson saga.

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