Texas has a long history as a filming location, from classic Westerns to modern blockbusters and television series. The state's film incentive program, administered by the Texas Film Commission within the Governor's Office of Economic Development and Tourism, provides financial incentives to attract and retain film, television, commercial, video game, and extended reality production in Texas.
Texas Moving Image Industry Incentive Program (TMIIIP)
The Texas Moving Image Industry Incentive Program is the state's primary film incentive. It provides grants to eligible media production projects that meet specific spending and content requirements.
How It Works
- Grant structure: TMIIIP provides cash grants based on a percentage of qualifying in-state spending. The base grant is typically a percentage of eligible Texas expenditures, with additional uplift percentages available for meeting certain criteria.
- Eligible projects: Feature films, television series, television movies, commercials, video games, and extended reality (XR) content may qualify. The specific requirements (minimum spending thresholds, content standards, and Texas hiring requirements) vary by project type.
- Texas spend requirements: Projects must spend a minimum amount in Texas and employ a specified percentage of Texas residents in the cast and crew.
- Content standards: Projects must not portray Texas or Texans in a negative light, per the program's content review standards.
Application Process
Applications are submitted to the Texas Film Commission before production begins. The process typically involves:
- Pre-production application with project details, budget, and production timeline
- Review and conditional approval by the Texas Film Commission
- Production in Texas with documentation of qualifying expenditures
- Post-production audit and verification of Texas spending and employment
- Grant payment after audit completion
Important: TMIIIP funding is subject to legislative appropriations. The available budget varies each biennium based on legislative decisions. Check with the Texas Film Commission for current funding availability and program terms.
Qualifying Texas Expenditures
Expenditures that typically qualify for the incentive include:
- Wages and salaries for Texas-resident cast and crew
- Production equipment rental from Texas companies
- Location fees paid to Texas property owners
- Set construction materials and labor
- Catering and craft services from Texas vendors
- Post-production services performed in Texas
- Hotel and lodging in Texas
- Transportation within Texas
Additional Incentives for Film Productions
Hotel Occupancy Tax Exemption
Some Texas cities offer hotel occupancy tax exemptions or rebates for film productions that book a significant number of room nights. This can generate meaningful savings for productions with large crews on location for extended periods.
Local Film Incentives
Several Texas cities maintain their own film incentive programs in addition to the state program:
- Austin: The Austin Film Commission provides production support and may offer local incentives for qualifying productions.
- San Antonio: The San Antonio Film Commission offers fee waivers, location assistance, and local incentive support.
- Dallas/Fort Worth: The DFW film commissions provide location support and may facilitate local incentives.
- Houston: The Houston Film Commission assists with permitting, locations, and crew sourcing.
Sales Tax Exemptions
Texas provides sales tax exemptions for qualifying production equipment and supplies used in motion picture, television, and recording production. Qualifying items include cameras, lighting, sound equipment, and editing systems used directly in production.
For Production Companies Based in Texas
Texas-based production companies — as opposed to out-of-state productions shooting in Texas — can access additional programs:
- Workforce training grants: Production companies hiring and training crew members can access Skills Development Fund grants. Workforce training guide.
- SBA lending: Production companies needing working capital, equipment financing, or facility improvements can access SBA loan programs. Government-backed loans guide.
- R&D tax credits: Production companies developing new production technologies, visual effects techniques, or proprietary software tools may qualify for the R&D tax credit. Tax credits guide.
- HUB certification: Qualifying production company owners can obtain HUB certification for access to state contracting opportunities. HUB certification guide.
Video Game and Digital Media
The Texas incentive program has expanded to include video game development and extended reality (XR) content. Texas-based game studios and digital media companies should evaluate both the TMIIIP program and the R&D tax credit for development activities. Texas has growing game development clusters in Austin, Dallas, and Houston.
Bottom Line
Texas film incentives are structured as grants based on qualifying in-state expenditures, with additional opportunities through local programs, sales tax exemptions, and standard business incentives for Texas-based production companies. The program's availability and terms depend on legislative appropriations, so producers should verify current funding status with the Texas Film Commission before building incentives into their production budgets.
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