Texas to Launch $300 Million Biennial Film Incentive Fund Starting September

TEXAS – A new law in Texas will establish a $300 million biennial incentive fund to attract film and media production to the state, making it one of the most aggressive state-level film incentive programs in the U.S. The fund, signed into law through Senate Bill 22, will go into effect on September 1, 2025, and is set to run through August 31, 2035.

The initiative is part of an effort to boost the state’s entertainment economy and compete with popular filming hubs like Georgia, New Mexico, and Louisiana.

Tiered Rebate Program With Up to 31% in Cash Incentives

Under the new legislation, the Texas Moving Image Industry Incentive Program (TMIIIP) will be infused with $300 million in sales and use tax revenue every other year. Production companies may be eligible for rebates ranging from 10% to 25%, based on in-state spending.

Additional bonus incentives of up to 6% are available for productions that:

• Film in rural counties

• Use Texas-based post-production services

• Hire military veterans from Texas

• Promote Texas heritage, family values, or positive imagery

Combined, the maximum rebate can reach 31%, making Texas a potentially lucrative location for future projects.

Details were first outlined in a report shared via LinkedIn Pulse.

Governor’s Office Will Have Discretion Over Projects

The TMIIIP will be discretionary in nature, meaning all proposed productions must receive prior approval from the Texas Governor’s Office. The office will have wide latitude in determining which projects qualify, including the right to reject applications based on content restrictions.

The bill allows officials to deny incentives for any production that “undermines public health, safety, or moral standards,” though those terms remain undefined and subjective, giving the Texas Film Commission significant interpretive authority.

Incentive Fund Set to Run Through 2035

The program is structured to operate biennially, with $300 million allocated from existing tax revenue for each two-year cycle through 2035. This ensures long-term funding stability, giving studios and producers a reliable incentive timeline for long-term planning.

Texas Aims to Compete with Nation’s Top Filming States

With the new fund, Texas positions itself as a serious competitor in the race for film production, especially as other states have pulled back or capped their film tax credits. The inclusion of rural bonuses and veteran hiring incentives is also seen as a way to spread economic opportunity beyond the major cities.

Do you think Texas’s film incentive program will attract major Hollywood productions or benefit local creators? Let us know in the comments at SaludaStandard-Sentinel.com.