Hollywood South? Texas Makes Its Bid With Major Film Incentive Expansion

In the ongoing back-and-forth competition between cities to become the next major hub for Hollywood production, Texas has strengthened its program offering financial incentives for film and television productions. This move aims to establish the South as a leading region in the entertainment and media industry.

On Sunday, Governor Greg Abbott allowed a bill to pass into law, boosting the budget for film productions by $100 million every two years. With this funding now approved until 2035, the expansion could provide up to $1.5 billion in subsidies to Hollywood over the next ten years.

The action is taken due to Texas’ surrounding states gaining more financial investments from productions, primarily through appealing incentive schemes. Notably, last year, Netflix unveiled intentions to enlarge its New Mexico filming facility to boost its influence within that state.

Yearly distribution for films and TV shows in Texas will reach $150 million, surpassing amounts given out in states like New Mexico ($130M), Arizona ($125M), and Louisiana ($125M). Although it falls short compared to film powerhouses California, New York, and Georgia, this investment could attract more productions to Texas in the future.

As a passionate advocate, I’m excited to share that I, along with my fellow co-founders at Media for Texas, believe Texas is on its way to becoming a new media hub! With lower costs, no income tax, a talented population, and an ideal location midway between the East and West Coasts, it’s the perfect place for media industries to thrive.

In this program, productions that have budgets of $1.5 million or more can receive cash grants equal to 25% of their spending within the state. Additionally, there are incentives of 2.5% for filming in rural areas or historic sites, as well as for implementing workforce development grants and employing veterans who reside in the state. Other qualifying factors may also apply.

Notably, Texas joins Oklahoma in a handful of regions whose incentive programs give grants.

To be eligible, a minimum of 60% of the filming should take place within Texas. Additionally, there are increasing residency requirements for people living in the state, and by the year 2031, at least half of the crew members working on the project must reside in Texas.

Additionally, regions similar to those providing incentives for unscripted TV productions will offer a 10% refund on eligible expenses for reality shows that have a production budget of at least $1 million.

Certain idiosyncrasies within the program may grant Texas some control over film productions, as the film office has the authority to withhold incentives for projects containing “inappropriate content” or portrayals of Texas or Texans in a negative light. Moreover, there is an extra 2.5% bonus given to faith-based productions and those promoting family values or positive aspects of Texas.

In the process of discussing the laws, some legislators raised doubts about whether specific projects deserved funding from public taxes.

Sen. Paul Bettencourt, R-Houston, criticized the bill Landman, stating that it fails to clarify the role of a landman, and he didn’t mean to offend anyone, but having Billy Bob Thornton use profanity in every line isn’t representative of Texas values. In his opinion, the bill is poorly made and not something Texas taxpayers would want to fund.

Under the new system, there’s no need for additional financial support from the state or bi-annual budget requests. Instead, unlike the existing program, the funding for this plan will come directly from Texas’ insurance and business tax revenues.

Movies that have been filmed in Texas are diverse, ranging from “Bernie”, “The Tree of Life”, and “Fear the Walking Dead”. Local talents such as Taylor Sheridan, Matthew McConaughey, and Woody Harrelson have played significant roles in advocating for film-related legislation within the state.

Earlier this year, during a hearing, McConaughey expressed that he and Harrelson concurred to donate 15% of their earnings from the Apple TV series “Brothers”, shot in Texas instead of Georgia. He emphasized, “Should this bill be approved in Texas, we are readily prepared for negotiations for filming more movies, television shows, and commercials within our state.

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2025-06-24 01:24