Everything’s bigger in Texas — and now that includes film incentives. In a bid to become Hollywood’s next favorite outpost, Texas has passed a sweeping expansion of its film and TV incentive program that will distribute $150 million annually to productions through 2035, totaling up to $1.5 billion over the next decade.
Governor Greg Abbott allowed the bill to become law Sunday without a signature, giving Texas one of the largest entertainment subsidies outside of California, New York, and Georgia. That puts the Lone Star State ahead of regional rivals like New Mexico ($130M), Arizona ($125M), and Louisiana ($125M) — all angling for Hollywood’s wandering eye as more productions seek cost-effective alternatives.
“Texas will be a new media coast,” said Chase Musslewhite, co-founder of Media for Texas. “It’s cheaper. There’s no income tax. There are great people down here, and it’s halfway between the east and west coasts.”
Here’s how it works
Productions with budgets over $1.5 million can earn up to 25% back on qualified in-state spend, with an additional 2.5% boost for shooting in rural areas, hiring local veterans, using historic sites, or running workforce development programs. Reality shows with budgets over $1 million can receive 10% back. To qualify, 60% of filming must happen in Texas, with a crew minimum that ramps up to 50% Texas residents by 2031.
There’s a Catch
Unlike other states, Texas’ revamped plan allows the state film office to deny grants to projects deemed to include “inappropriate content” or portray Texas or Texans in a negative light. There are also added incentives for faith-based films and productions that promote “family values” or favorable depictions of the state.
That language raised eyebrows in legislative debate, especially after Republican Sen. Paul Bettencourt slammed Taylor Sheridan’s Landman series. “It doesn’t explain what a landman does, and no offense, having Billy Bob Thornton f-bomb every sentence is not Texas values,” he said.
The program is structured to avoid additional appropriations requests by drawing from Texas’ insurance and franchise tax revenue, making the funding automatic every two years.
Meanwhile, neighboring states like Oklahoma and New Mexico continue investing in studio infrastructure and long-term partnerships (Netflix is currently expanding its Albuquerque campus), and California has ramped up efforts to keep indies and runaway productions at home with new tax credit eligibility rules.
Texas, however, seems to be betting not just on its wallet, but on its identity. Whether Hollywood is ready to play by Texas’s rules is another story.
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