Written by Kianna Best on Jun 23, 2025. Posted in Incentive News

A Bold New Era for Film Incentives in the Lone Star State

Image courtesy of pete alexopoulos by Unsplash

Texas has taken a bold step in transforming its film and television landscape with the passage and signing of Senate Bill 22, creating a new era of stability, scale, and scrutiny for the industry. The bill establishes the Texas Moving Image Industry Incentive Fund, setting aside USD 300 million each biennium, up from the previous USD 200 million cap, to support productions through at least 2035. While the Senate had initially considered a USD 500 million allocation, fiscal negotiations ultimately settled on the USD 300 million figure, a number advocates consider sufficient to maintain competitiveness without opening the floodgates.

The most transformative change under SB 22 lies not just in the numbers, but in the fund’s structure. Managed by the Texas Treasury Safekeeping Trust Company and administered by the Governor’s Film Office, the fund resides outside the legislative budget cycle. That grants the Governor automatic access to disburse funds without new appropriations, turning a once-intermittent program into a stable, ongoing resource. It is replenished every two years through sales and use tax deposits—with $300 million slated for each biennium through 2035.

SB 22 also broadens project eligibility, lowering the minimum in-state spend threshold and expanding bonus incentives. Feature films and TV series now qualify with a USD 500,000 spend; commercials with just USD 100,000. Rebate tiers are competitive, flowing from base rates of 5% up to 25% based on scale, plus an additional 2.5% for heritage-focused projects, another 2.5% for shoots in underutilised or economically distressed counties, and targeted incentives for partnering with universities, hiring veterans, and performing in-state post-production work. These layered bonuses echo the Senate’s emphasis on regional development, educational cooperation, and Texas-based workforce involvement.

Content and workforce policies are central to SB 22’s philosophy. A phased crew requirement mandates 35% Texas-based employees by 2025, rising to 50% by 2031, signalling strong intent to nurture local talent. Yet SB 22 also introduces a “values clause”: the Governor’s Film Office may refuse or revoke incentives for content that portrays Texas negatively, includes “obscene” material, or deviates from community standards, with dual-stage content reviews before and after production. Free-speech advocates caution that these subjective filters could stifle creativity and lead to ideological gatekeeping . Governor Abbott’s office defends the clause as a safeguard for public investment and state reputation.

Support for SB 22 is broad and bipartisan. Crafted by Sen. Joan Huffman (R) and co-sponsored by Sen. Carol Alvarado (D), the bill was carried in the House by Rep. Todd Hunter (R), who noted the Legislature had already approved funding—the bill merely defines the framework for its use. Endorsed by local advocacy groups like Media for Texas and championed by Texas icons Matthew McConaughey, Woody Harrelson, Dennis Quaid, and Taylor Sheridan, SB 22 conveys a sense of momentum. McConaughey specifically emphasised the economic multiplier—both in jobs and secondary services like catering and transportation—as evidence this policy reaches far beyond on-set filming.

Fiscal projections suggest this expansion could yield substantial returns. Historical data from the Texas Film Commission indicate nearly a 469% ROI on past incentive programs. Nonetheless, critics like Every Texan dispute such estimates, citing studies showing film subsidies often yield far lower economic multipliers—sometimes as little as $0.19 per dollar spent, as seen in Georgia. Fiscal conservatives label SB 22 a significant diversion of public revenue with limited legislative oversight due to its off-budget design.

SB 22 officially landed on Gov. Abbott's desk in June 2025, and, given its high-profile support, signing is anticipated. Attention now shifts to implementation: drafting application guidelines, defining bonus criteria, establishing content-review standards, and launching a public portal. Meanwhile, several productions have already begun evaluating Texas locations in anticipation of the expanded program.