Texas’ film incentive program is getting a boost after Gov. Greg Abbott allowed a bill to become law on Sunday that will increase its funding to $300 million every two years, up from $200 million, which will run through 2035.
The original proposal, which was backed by Lt. Gov. Dan Patrick and Hollywood heavyweights including Matthew McConaughey, Taylor Sheridan, Woody Harrelson and Dennis Quaid, would have allocated $500 million every two years, but was trimmed by the House last month. The amended version was approved by 23 to 8 by the Senate.
The move comes as the Lone Star State looks to lure television and film productions away from local rivals such as New Mexico and Georgia.
Since 2007, the program has been funded by lawmakers at varying levels, ranging from $45 million on the lower end to $200 million on the high end.
Senate Bill 22 allows the comptroller to deposit the funding into a new Texas Moving Image Industry Incentive Fund. Eligible expenses that would be covered by the fund’s incentives would cover include wages for Texas workers, meals purchased from local restaurants and airfare on Texas-based airlines.
SB22 would also make smaller films eligible for larger grants. Currently, projects are required to spend $1 million to $3.5 million in Texas for a 10% rebate and over $3.5 million for a 20% rebate. The bill would give a 25% grant for feature films and television programs that spend at least $1.5 million.
Gov. Greg Abbott opted to not sign or veto the bill ahead of the June 22 deadline following pressure from conservative lawmakers to reject it for providing incentives to “liberal Hollywood.” The law will officially take effect on Sept. 1.
