Texas Legislature advances $500M film incentive bill to promote statewide production

The Austin Tourism Commission meeting on April 9, 2025, focused on the critical role of state incentives in attracting film and media production to Texas. Brian Gannon, a board member of the Texas Media Production Alliance, highlighted the importance of competitive incentives, noting that Texas currently offers up to 22.5% back via cash grants based on project spending and wages paid to Texas residents. This program received historic funding of $200 million during the last legislative session, which is essential for maintaining production levels in Austin.

Gannon explained that Texas competes with states like Georgia, New Mexico, and Louisiana, which have more robust incentive programs. He emphasized that while Texas does not have a state income tax, its incentive structure relies on the general fund, making it less competitive compared to states that offer tax credits. The ongoing legislative efforts aim to enhance these incentives significantly.

Senate Bill 22 and its House counterpart, HB 4568, propose a substantial increase in funding—$500 million every two years for the next decade. These bills would raise the base incentive to 25%, with potential uplifts bringing it to 31%. Gannon expressed optimism that if these bills pass, Texas could see a historic increase in production activity, revitalizing the local industry.

The meeting also touched on the broader implications of the film industry for tourism, with Gannon noting that attractions like the silos in Waco draw more visitors than the Alamo, underscoring the economic impact of media production. The lieutenant governor's push to make Texas the "movie capital of America" reflects a growing recognition of the industry's potential to boost tourism and local economies.

As the legislative session progresses, Gannon indicated that the bills are gaining traction, with support from key figures like the lieutenant governor and public endorsements from local celebrities. The outcome of these legislative efforts could reshape the landscape of film production in Texas, providing a more stable funding model and potentially increasing the state's attractiveness as a filming location. The commission will continue to monitor developments closely as the bills move through the legislative process.