The Texas Legislature has approved a significant expansion of the state’s film incentive program, authorizing up to $500 million every two years through 2035 to attract film and television productions.
The Texas House voted 112-26 on Saturday to pass Senate Bill 22, which will now be sent to Gov. Greg Abbott, who is expected to sign it.
The bill, filed by Sen. Joan Huffman (R-Houston), creates the Texas Moving Image Industry Incentive Fund, allowing the state comptroller to allocate funds for expenses like local wages, meals from Texas restaurants, and airfare on Texas-based airlines. Rep. Todd Hunter (R-Corpus Christi) presented the bill in the House and estimated the cost at around $300 million biennially, though it could reach $500 million depending on final budget decisions.
“This bill provides safeguards on how Texas spends money on film,” Hunter said, noting the funds were already included in the state budget.
The legislation aims to position Texas as a top film production hub, rivaling states like Georgia and New Mexico. Fort Worth, now Texas’ fourth-largest city with over a million residents, stands to benefit significantly, building on an industry that has generated over $700 million and 30,000 local jobs, according to the Fort Worth Film Commission.
“Texas is going to see a boom in film economic development,” Hunter said, describing Fort Worth as “one of the leaders of filmmaking,” according to Fort Worth Report.
Supporters, including Fort Worth Mayor Mattie Parker and Texas natives like Matthew McConaughey, Woody Harrelson, Dennis Quaid, and Sheridan, creator of “Yellowstone” and writer of “Hell or High Water,” campaigned heavily for the bill. Chase Musslewhite, co-founder of Media for Texas, said the incentives make Texas competitive without overwhelming local resources.
“This bill makes us competitive with our neighbors so that we wouldn’t be losing our stories to New Mexico, Louisiana, and Georgia, but it wouldn’t make us competitive enough to open the floodgates,” Musslewhite said, per The Texas Tribune. “I think with the celebrity power we have behind this, once this bill gets passed, it will spread like wildfire.”
SB 22 increases grants for smaller films, offering a 25% rebate for projects spending at least $1.5 million in Texas, up from the current 10% for projects between $1 million and $3.5 million. Additional incentives include a 2.5% bonus for filming in “underutilized” or “economically distressed” areas or employing veterans as 5% of the crew. The Texas Film Commission reports a 469% return on investment from the program, though some lawmakers and economists criticize the metric as inflated.
Critics, like Rep. David Lowe (R-North Richland Hills), opposed the bill, citing concerns about subsidizing an industry perceived as hostile to Texas values.
“This bill provides taxpayer-funded incentives to the film and entertainment industry. The same industry that trashed us for supporting President Trump, mocked us for standing up for the unborn, and ridiculed our Christian faith at every opportunity,” Lowe said, the Tribune reported.
Others questioned the governor’s office having sole discretion over grant allocations.
Supporters countered that the bill strengthens an existing program. This program has been in place since 2007 and has been funded at varying levels, most recently at $200 million in 2023.
“There are tons of Texans who live in California and New York, all over the globe, who are pursuing their careers, because those opportunities weren’t here in Texas,” Grant Wood, co-founder of Media for Texas, said, per the Tribune.
Musslewhite dismissed fears of Hollywood overreach, saying, “Instead of fearing what Hollywood will do to Texas, we should be enthusiastic about what Texas will implement on the industry.”
If signed, the bill takes effect immediately, with funds available starting September 2025.