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Texas Bets Big on Film: Are New Incentives Changing the Legal Landscape for Production?
Key Takeaways
- •Texas’s Moving Image Industry Incentive Program allocates $1.5 billion over 10 years ($300 million biennially) for film and TV productions.
- •Projects must employ at least 35% Texas residents in crew/cast, complete 60% of production in-state, and spend a minimum of $250,000 in Texas to qualify.
- •This legislative act is a public policy effort to create jobs, retain talent, and stimulate economic growth, directly impacting state budget allocation and local businesses.
- •The $250,000 minimum spend requirement raises public policy questions about accessibility for independent and student filmmakers.
- •Texas is competing with established incentive programs in states like Georgia (20% transferable tax credit) and New Mexico (25% refundable tax credit).
Picture this: you're chatting with a friend at a Houston bar, and the topic turns to Texas. You know our state loves to go big, right? Well, it's doing just that with its film and TV industry. The state just poured serious money into a program designed to get more cameras rolling here. But we need to ask, is it enough to truly make Texas competitive, and what does this really mean for folks like you and me?
Back in 2006, when Bill Saxelby started his film degree at UT Austin, Texas filmmaking was booming. State incentives had helped kick off tons of local productions, creating thousands of jobs. Think Richard Linklater and Wes Anderson — big Texas names making big movies here. But by the time Bill graduated in 2010, the economy had crashed, and so had the local film scene. He told us he had to pack up and head to New York City just to find work in his field. Texas simply didn't have the opportunities then.
Now, things are looking up again. Bill and other industry pros say Texas is serious about film once more. In 2025, state lawmakers passed a huge incentive package. It's called the Texas Moving Image Industry Incentive Program, and it promises a whopping $1.5 billion over the next decade. This cash is for movies, TV shows, commercials, video games, animation—basically anything with a moving image, as long as a decent chunk of the work happens right here in Texas.
Here's how it works: the program sets aside $300 million every two years. To qualify for a piece of that pie, a film project has to meet a few rules. First, at least 35% of the paid crew and cast must be Texas residents. That's a direct shot at creating local jobs and keeping our talent here. Second, 60% of the actual production work needs to happen in Texas. This keeps the money flowing into our local economy. And third, they have to spend a minimum of $250,000 in Texas. That last bit is a bit of a hurdle, as we'll get into.
Since this program kicked off last September, it's gotten over 100 applications. That's a good sign, showing real interest. Even Texas-born actor Matthew McConaughey got involved, telling legislators that passing this bill would put Texas 'immediately at the bargaining table' for more film and TV shoots.
But what about the next generation? Greg Carter, a Houston-raised filmmaker and a professor at the University of Houston, knows all about leaving Texas to chase film dreams. He started his career here, then left for Los Angeles. Now, he's back, helping launch UH's new graduate film-production certificate program. He says you don't have to be in LA to make it anymore, and this new incentive program is a big reason why.
The certificate program, which starts this summer, will teach students the business side of film and dive deep into on-set production. Fleurette Fernando, who leads UH's Arts Leadership Program, points out that it's important for Texans to be the ones making the big business decisions about this industry in our state, not outsiders. This helps protect local interests and ensures the economic benefits stay home.
While more education is great for the long run, Carter does have a worry. That $250,000 minimum spending rule? He thinks it's too high for many student films or independent projects. It could unintentionally shut out smaller, local creators who might not have that kind of budget. This raises public policy questions about whether the program helps everyone, or just the big players.
On the flip side, Chris Rupert, from the Fort Worth Film Commission, sees a positive 'trickle-down effect.' He runs a film equipment rental company, and he says bigger projects rent a lot of gear. This helps local businesses like his, plus catering companies, hotels, and transportation. When these businesses do well, they can keep equipment affordable for aspiring filmmakers and small productions. It's a key argument for how large-scale economic incentives can help smaller businesses indirectly.
However, Texas isn't the first state to figure this out. We're playing catch-up. States like Georgia and New Mexico have had consistent film incentives for the past two decades. Georgia offers a 20% transferable tax credit, essentially giving cash back. New Mexico has a 25% refundable tax credit. For a filmmaker like Bill Saxelby, who moved to Georgia from New York, coming back to Texas isn't even an option right now because of how established those other states are.
Still, there's hope for future Texas filmmakers. Austin Film Commissioner Brian Gannon says our state's rich filmmaking history gives us an edge. Think classic Texas films from the '70s and '80s like 'The Texas Chainsaw Massacre.' Those low-budget, locally made films even inspired Robert Redford to start the Sundance Film Festival. That's some serious street cred.
Out in Amarillo, Sherman Bass, the local film commissioner, is marketing the Palo Duro Canyon’s dramatic scenery—it's been used in 'Indiana Jones' films! He’s confident these new incentives will be great for the industry and the Texas economy, especially in the bigger film hubs, but also in places like West Texas. Bass believes the state will see a clear 'return on investment,' and that our lawmakers will keep seeing this as a smart move for Texas's future, long past the initial ten years. It's a significant public policy gamble, aiming for lasting economic impact and cultural growth for the Lone Star State.
Original source: Politics – Houston Public Media.
