Hollywood South? Texas Expands Film Incentives With $1.5 Billion Boost

Texas is making an aggressive play to become a new entertainment powerhouse with a major expansion of its Texas Film Incentive program.

On Sunday, Governor Greg Abbott allowed a bill to become law that significantly increases funding for film and TV productions, signaling Texas’ ambitions to rival traditional industry hubs like California, New York, and Georgia.

A Major Financial Commitment

The new legislation raises Texas’ film and TV production allotment by $100 million every two years, resulting in an annual distribution of $150 million through 2035.

Over the next decade, this could amount to $1.5 billion in subsidies to attract major Hollywood projects.

With this boost, Texas now surpasses neighboring states such as New Mexico ($130 million), Arizona ($125 million), and Louisiana ($125 million) in annual film incentive budgets.

While still trailing industry giants, this positions Texas to consistently lure more productions moving forward.

A Strategic Push for Media Dominance

“Texas will be a new media coast,” says Chase Musslewhite, co-founder of Media for Texas. “It’s cheaper. There’s no income tax. There’s great people down here, and it’s halfway between the east and west coasts.”

Under the updated Texas Film Incentive program, productions with budgets of at least $1.5 million can receive cash grants covering 25% of qualified in-state spending.

Additional uplifts of 2.5% are available for shooting in rural or historic locations, implementing workforce development, and hiring veterans living in Texas.

Reality TV shows also benefit, qualifying for a 10% rebate on qualified costs if budgets exceed $1 million.

Cultural and Political Conditions

Texas joins Oklahoma among the few states offering cash grants rather than tax credits. To qualify, at least 60% of a production must be filmed in Texas, with local crew hiring thresholds increasing to 50% by 2031.

Notably, the Texas Film Office can deny incentives for projects deemed to have “inappropriate content or content that portrays Texas or Texans in a negative fashion.” Productions that promote faith-based themes, family values, or depict Texas favorably can receive an additional 2.5% bonus.

This stipulation sparked debate among lawmakers. For example, Senator Paul Bettencourt criticized the Paramount+ series Landman for its portrayal of Texas, saying, “It doesn’t explain what a landman does, and no offense, having Billy Bob Thornton f-bomb every sentence is not Texas values.”

Funding Structure and Industry Support

Unlike previous versions, the revamped program does not require new appropriations requests every two years. Instead, it will be funded through Texas’ insurance and franchise tax revenue streams.

High-profile Texans, including Taylor Sheridan, Matthew McConaughey, and Woody Harrelson, advocated for the expansion. During a hearing, McConaughey revealed that he and Harrelson agreed to give back 15% of their pay to film the Apple TV+ series Brothers in Texas rather than Georgia. “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,” McConaughey emphasized.