Texas Bill for Hollywood
Texas is looking to introduce a Texas Bill for Hollywood through an uncapped film and television tax incentive program targeted at high-budget productions, in a bid to attract Hollywood studios and shoot in the state.
The proposed Texas Bill for Hollywood offers a 30% base transferable tax credit, which could be as high as 42.5%, to productions with budgets of at least $15 million that are shot in economically distressed areas. Talent compensation is also eligible for incentives.
The Texas Bill for Hollywood, which is expected to draw from the state’s insurance and franchise tax funds, is not expected to require extra funding or appropriations requests. Currently, Texas offers tax credits of up to 20% for productions with budgets of at least $3.5 million, with the program underfunded at just $45 million annually. The current scheme also places strict requirements on resident participation and local shoot days, which are expected to be relaxed under the proposed bill.
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The Texas Bill for Hollywood is being considered as neighboring states, such as New Mexico and Louisiana, continue to attract Hollywood productions through generous tax incentive programs, Yahoo reported. In 2022, film and TV productions generated over $1.5 billion for the economies of New Mexico, Louisiana, and Oklahoma, with New Mexico seeing a record $855 million.
While Texas has previously resisted tax incentive programs, arguing against giving breaks to productions that may produce content deemed objectionable, the bill’s author, Republican Four Price, argues there is growing interested in content production in the state, and that it is an industry in which Texas can do better.
By attracting large-budget productions through the Texas Bill for Hollywood, there would be more funding available to be spread across smaller productions. The bill has been welcomed by industry experts, with Joe Chianese, SVP at Entertainment Partners, calling it a “competitive” step. In the past, Texas has lost productions to neighboring states, even when projects are set in Texas, leading to frustration among lawmakers. However, the success of Taylor Sheridan’s Yellowstone, which was shot in North Texas, has changed perceptions of tax credits in the state. Lt. Gov. Dan Patrick has expressed his desire to bring all of Sheridan’s TV and movie production to Texas.
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