Everything’s Bigger in Texas: Gov. Abbott Expands Film Incentive Program to $150M

For decades, Texas has offered filmmakers epic landscapes, growing infrastructure and a down-to-earth business climate infused with southern hospitality. But in the face of fierce competition from states like Georgia, New York, and California, not to mention international players like Canada and the UK, Texas lawmakers are doubling down on film incentives to keep cameras rolling across the Lone Star State.

With robust funding, tiered grant opportunities, and expanded infrastructure support, Gov. Greg Abbott has allowed Senate Bill 22 to become law, signaling a new era for Texas film, television, and digital media in the Southwest. The sweeping legislative effort, which incorporates key provisions from the now superseded House Bills 5000 and 5440 now positions Texas as a serious contender for major studio and independent productions.

Texas offers a tiered incentive system with up to 31% back

The focus of Texas’s new approach is a comprehensive, tiered grant program designed to attract a wide range of productions, from feature films and TV series to interactive media and reality shows. Here’s how it breaks down:

Base Grants

Feature Films, TV (non-reality), Visual Effects:

• $250K to less than $1M spend: 5%
• $1M to less than $5M spend: 10%
• $5M+ spend: 25%

Digital Interactive Media:

• $100K to less than $1M spend: 5%
• $1M to less than $5M spend: 10%
• $5M+ spend: 25%

Reality TV:

• $250K to less than $1M spend: 5%
• $1M+ spend: 10%

Commercials & Other Media (including VFX for commercials/educational/instructional videos):

• $100K to less than $1M spend: 5%
• $1M+ spend: 10%

Stackable Bonuses (Up to 31% Total)

• Texas Heritage (+2.5%) – For content promoting family values or Texas culture.
• Rural Filming (+2.5%) – For productions filming 35%+ in counties with populations under 300,000 (based on filming days or man-hours).
• Postproduction (+1%) – For allocating 25%+ of spending to post work in Texas.
• Texas Veterans (+2.5%) – For employing 5%+ Texas veterans in cast or crew.
• Faith-Based Content (+2.5%) – For projects officially designated as faith-based.
• Historic Site (+2.5%) – For projects primarily filmed at historic sites.
• Higher Education Partnership / Workforce Development (+2.5%) – For projects that partner with Texas higher education institutions to develop the project's workforce or provide training to students.

SB 22 also incorporates escalating local hire requirements to ensure that incentive dollars feed directly into the state’s workforce:

• 35% Texas residents required from Sept. 1, 2025 to Aug. 31, 2027
• 40% from Sept. 1, 2027 to Aug. 31, 2029
• 45% from Sept. 1, 2029 to Aug. 31, 2031
• 50% starting Sept. 1, 2031

These provisions reward productions that invest long-term in local talent and infrastructure, gradually strengthening the state’s homegrown industry.

The Texas Moving Image Industry Incentive Fund will receive $300 million every two years through 2035, or $150m annually, providing the financial backbone to attract high-impact productions and support sustained industry growth.

Specifically, SB 22 now:

• Expands the definition of “media production facility” to include renovations of existing properties and requires that at least 60% of a production's activities occur within the state. This incentivizes companies to establish long-term roots in Texas and invest in local economies.
• Adjusts eligibility requirements to be more competitive. This includes setting minimum qualified expenditures at $250K for feature films, TV (non-reality), and visual effects projects, and $100K for digital interactive media, commercials, and other media. To ensure incentive dollars feed directly into the state’s workforce, the bill also incorporates escalating Texas residency requirements for cast and crew:
  • 35% Texas residents required from Sept. 1, 2025, to Aug. 31, 2027
  • 40% from Sept. 1, 2027, to Aug. 31, 2029
  • 45% from Sept. 1, 2029, to Aug. 31, 2031
  • 50% starting Sept. 1, 2031, Grants under SB 22 can reach up to 31% (with bonuses), based on the project’s estimated economic impact, incentivizing producers to hire locally and maximize in-state spending.

Curious to see how Texas incentives stack up against other states? Head over to the jurisdiction comparison tool to see side-by-side breakdown of up to three locations.

Infrastructure growth and workforce development in Texas film sector

Texas is rapidly scaling its production capabilities with initiatives aimed at building new infrastructure, training programs, and innovation hubs. Here’s a deeper look at some of the key initiatives leading the charge:

Studio Expansion Projects: Facilities like Hill Country Studios in San Marcos and Athena Studios in Bastrop are adding state-of-the-art soundstages, post-production spaces, and on-site accommodations. These expansions not only increase capacity but also reflect growing confidence in Texas as a long-term industry player.

Workforce Development Initiatives: The Texas Film Commission offers grants and local organizations like Austin Film Society training programs in set operations, editing, lighting, and grip work. These programs aim to equip a new generation of Texas-based crew members with the skills needed to support high-end productions.

Technology Investment: Texas is also becoming a leader in virtual production and immersive media. Trilogy Studios is building the state’s largest LED volume stage in Fort Worth, catering to the growing demand for real-time filmmaking. Meanwhile, Texas A&M University has launched the Virtual Production Institute in partnership with Sony, training students in cutting-edge digital production tools and methods.

Public-private collaborations support filming in Texas

Public-private partnerships are a key pillar of Texas’s media strategy, and SB 22 is expected to further accelerate these collaborations. The newly enacted bill is designed to attract long-term production commitments to Texas by making the state more competitive with neighboring jurisdictions like Georgia, New Mexico, and Louisiana, which have historically offered more substantial and consistent incentives. This strategy, also deployed by states like New Jersey and New York, aims to encourage production companies to establish a more permanent presence and invest in local infrastructure and workforce.

Two examples of these partnerships demonstrate the impact of community-rooted infrastructure:

• Hill Country Studios, a $267 million project backed by Texas-based investors, is set to become one of the largest film production campuses in the country.
• Austin Studios, a 20-acre film and creative media production complex operated by the nonprofit Austin Film Society, in partnership with the City of Austin, offers 200,000 sq. ft. of production space. With multiple stages, editing suites, and training programs, it functions as both a professional production facility and a workforce pipeline.

Hello, Hollywood South: The future looks bright for Texas and neighboring incentive states

The revamped Texas film incentive program arrives at a pivotal moment. The U.S. production landscape is still recovering from pandemic disruptions and labor strikes, while streaming platforms and studios are reevaluating spending and location selection strategies.

States like New York and California are aggressively expanding their programs with higher funding caps and broader eligibility. In contrast, Texas is offering a distinct value proposition: a low-regulation, business-friendly climate, generous bonuses for cultural and regional relevance, and a commitment to workforce and infrastructure development.

Part of the growing ‘Hollywood South’ coalition, Texas now leads its neighboring rivals New Mexico, Arizona, Oklahoma and Louisiana in a bid to grab Hollywood by the horns. For filmmakers and studios looking for both immediate value and long-term opportunity, Texas offers a compelling package.

Looking for the right incentive for your next project? Say ‘Howdy!,’ we’d love to hear from you. Click the green contact us button to get in touch. You can also visit the Entertainment Partners Incentives page to see which territories offer incentives, and take advantage of EP’s advanced incentives toolkit, including our incentives estimator and jurisdiction comparison tool.

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