The Texas Legislature officially passed Senate Bill 22,, and Gov. Greg Abbott signed it into law this summer, securing $300 million every two years through 2035 for Texas’s film incentive program. The legislation represents a significant expansion of the state’s efforts to attract major film and television productions.
The new Texas Moving Image Incentive Program increases the funding structure from the previous biennial allocation by $100 million, surpassing the current funding and bringing the total investment to $1.5 billion over the next decade. The Senate’s original version of the bill would have deposited $500 million every two years until 2035. The House amended the bill to $300 million, and the Senate concurred with a 23-8 vote.
Texas’s film incentive program offers grants from the incentive fund for films that qualify based on a percentage of the crew, actors and extras who are Texas residents. Initially, eligibility requirements are that 35% of the crew must be Texas residents, and by Sept. 1, 2031, that percentage must be 50%. Additionally, at least 60% of the moving image project must be filmed in Texas.
To qualify for a grant, a production company must have spent a minimum of $500,000 in-state spending for a film or television program, and $100,000 in-state spending for a commercial, educational/instructional video or a digital interactive media production. UT San Antonio film and media student Ireland Robinson explained that this new incentive program in Texas offers a great environment for her preferred genre of film to create.
“All my films are centered around local communities, rural areas and small towns.” said Ireland. She continued “I love it. I think stories should come more from there than [from] big cities. It’s more based on reality, and so it gives me hope that there’s this incentive happening.”
Supporters of the expanded program point to economic data from the Texas Film Commission and other creative professionals who say the program has successfully created 182,000 Texas jobs and yielded $2.52 billion in-state spending.
“And for every $1 paid out for a grant, $4.69 is spent in the state,” testified Executive Director of Texas Economic Development and Tourism Adriana Cruz last October.
This means for every grant dollar the state awards, the industry returns over $4 to its economy. However, such projections are difficult to verify, and independent studies on film subsidies have shown mixed results.
“There’s going to be some great stories out there that’s going to change lives, and Texas, you get to own that,” Robinson said.
Programs such as this create opportunities for students to capitalize on their education and expand on their skills.
“Filmmaking is a business, whether you like it or not. But there are ways around it where you can still be creative and get to the points you want to be at. It just depends on where you want to go,” Robinson said.
UT San Antonio Director of the Film/Media program and Professor Paul Ardoin explained the advantages of the program’s timeline extending through 2035.
“We’ve also seen already increased investment – and promised future investment – in new and expanded studio space in places like Ft. Worth, as a result not just of increased economic incentives like rebates in Texas but also their increased timeline, creating a bit more predictability for the industry,” Ardoin said.
The legislation takes effect immediately, with the enhanced funding available for productions beginning their Texas shoots in the current fiscal year. State officials will be monitoring the program’s implementation as Texas continues to compete with other states for major film and television projects.
