Texas has long been known as a film-friendly state offering a slew of tax incentives, grants and other attractive benefits to productions. The May 29 conclusion of the recent legislative session delivered filmmakers additional commitments for financial support in the coming year. Thanks to two bills, the statewide filming grant was raised to an all-time high of $200 million, a significant jump from the $45 million earmarked in the previous session.
The legislature also agreed to conduct a lengthy investigation into the revenue benefits of creating a transferrable tax credit program in the future, similar to those that already exist in Georgia and Oklahoma.
Sharpened Iron Studios’ chief executive officer Sean Doherty worked with the governor and legislature on these endeavors. “We’re supremely confident that when the study is complete the legislature will understand ‘Hey, Texas is missing out,’” says Doherty. “The grant program is going to be tremendous and that’s going to help, too, because they’ll see what that has done in the short term. Bringing the study in the next phase of a dual program is going to be a fait accompli.”
Aside from the newest legislation, the Texas Moving Image Industry Incentive Program includes benefits such as a base 5%-20% incentive rate based on in-state spending, with an additional 2.5% meted out for productions working within underutilized or struggling economic areas. Qualifying expenses include wages, invoices and even petty cash. There are also incentives for hiring locally and no overall cap to the credits. Spend more, save more; everything is bigger in Texas, after all.
Filmmakers and Texans alike benefit in the present with promise for an even better future as the state continues to entice productions to move within its borders.
