Texas lawmakers have passed a bill, Senate Bill 22, which now awaits Governor Greg Abbott’s signature. This legislation aims to boost the state’s film and television industry by significantly increasing financial incentives.
Originally proposed at $500 million biennially, the final version of the bill allocates $300 million every two years to the Texas Moving Image Industry Incentive Fund until 2035, a figure amended by the House and accepted by the Senate.
Currently, Texas provides $200 million every two years for such incentives, with funding varying each legislative session. SB 22 seeks to not only increase this amount but also ensure funding consistency. Incentives can cover expenses like Texas workers’ wages, local restaurant meals, and Texas-based airline travel. The bill also offers additional incentives for productions using historical sites or partnering with universities.
Supporters like Chase Musslewhite of Media for Texas argue this increase will make Texas more competitive with neighboring states like New Mexico, Louisiana, and Georgia, without triggering a massive influx of productions. Other states offer stronger incentives, which Musslewhite believes is ideal for Texas, focusing on baseline competitiveness rather than attracting excessive competition. Grant Wood, also of Media for Texas, notes the bill could bring Texan talent back home and diversify the economy.
Conversely, the bill has faced criticism. Representative David Lowe argues against “Hollywood handouts,” citing the industry’s past criticisms of Texas values. Concerns have also been raised about the Governor’s complete discretion over funding allocation and potential political influence from Hollywood. Economists have also previously criticized the film incentive program as wasteful spending despite the Texas Film Commission’s report of a 469% return on investment.
Celebrity support for the bill includes actors Matthew McConaughey, Woody Harrelson, and Dennis Quaid, as well as creators like Chad Gunderson and Taylor Sheridan. Musslewhite believes their support will fuel further interest in filming in Texas.
The revised bill also changes incentive structures, offering a 25% grant for feature films and television programs spending at least $1.5 million, compared to the current 10% rebate for projects spending $1-3.5 million and a 20% grant for projects over $3.5 million.
Additional incentives of 2.5% remain for productions in “underutilized” areas or those with a 5% veteran crew. Despite concerns about Hollywood’s influence, Musslewhite emphasizes Texas’s strength and ability to shape the industry’s impact within the state. Historically, film incentives have varied significantly in Texas, with recent sessions granting up to $200 million.
According to the National Conference of State Legislatures, Texas is one of 37 states with a film incentive program, but its fluctuating funding has kept it behind states like New York, Georgia, and New Mexico in attracting major productions.