Amid a tit-for-tat battle to host Hollywood, Texas has bolstered its incentive program for movies and TV shows that positions a Southern bloc of states as a premier destination for entertainment and media.
Gov. Greg Abbott on Sunday let a bill become law that increases by $100 million the amount allotted to productions every two years. With the funding greenlit through 2035, the expansion will shower as much as $1.5 billion in subsidies to Hollywood over the decade.
The move comes as Texas neighbors increasingly attract money from productions thanks to generous incentive programs. Last year, Netflix announced plans to expand its New Mexico production campus in a bid to increase its presence in the state. With the increase, Texas will distribute $150 million annually to movies and TV shows, more than New Mexico ($130M), Arizona ($125M) and Louisiana ($125M). The figure is less than film hubs California, New York and Georgia but could see the state consistently draw productions moving forward.
Texas will be a new media coast, says Chase Musslewhite, co-founder of the advocacy group Media for Texas. Its cheaper. Theres no income tax. Theres great people down here, and its halfway between the east and west coasts.
Under the program, productions with budgets of at least $1.5 million are eligible for cash grants of 25 percent of qualified spending in the state. There are 2.5 percent uplifts available for shooting in a rural area or historic site, implementing a workforce development grant and hiring veterans who live in the state, among other things.
Notably, Texas joins Oklahoma in a handful of regions whose incentive programs give grants.
To qualify, at least 60 percent of the production must be shot in Texas. There are minimum thresholds to residents that escalate until 2031, at which point 50 percent of crew must be from the state.
And joining other regions that allow unscripted productions to get incentives, reality TV shows with budgets of at least $1 million will get 10 percent of qualified costs back.
Some quirks to the program could allow Texas to exercise some level of influence over productions: The film office can reject incentives for productions that include inappropriate content or content that portrays Texas or Texans in a negative fashion. Also at play are additional 2.5 percent bumps for faith-based productions and titles that promote family values or favorable Texas characteristics.
When considering the legislation, some lawmakers questioned whether certain productions should be given taxpayer money.
Its not functionally correct. It doesnt explain what a landman does, and no offense, having Billy Bob Thornton f-bomb every sentence is not Texas values, said Sen. Paul Bettencourt, R-Houston, of Landman when the legislation was up for a vote. It simply is a bad product and not something the Texas taxpayers would want to be supporting.
The legislation will not require extra funding from the state or appropriations requests every two years. Unlike with the current program, the new scheme will be funded through Texas insurance and franchise tax buckets.
Titles that shoot in Texas include Bernie, The Tree of Life and Fear the Walking Dead. Homegrown talent like Taylor Sheridan, Matthew McConaughey and Woody Harrelson pushed for the legislation.
At a hearing earlier this year, McConaughey said that he and Harrelson both agreed to give back 15 percent of their pay to shoot Apple TV series Brothers in Texas instead of Gerogia. He stressed, If we pass this bill in Texas, we are immediately at the bargaining table for shooting more films, and television, and commercials in our state.