Senate Bill 22, which would create a $300 million biennial fund for the next decade of Texas’ film incentives program, for a total investment of $1.5 billion, now awaits Gov. Greg Abbott’s signature.
Texas House legislators passed the bill on Monday after a third reading.
It was then sent back to the Senate with amendments including one that lowered the originally proposed $500 million in appropriations to $300 million.
Rep. Todd Hunter, R-Corpus Christi, a primary co-sponsor of the bill, adjusted the biennial figure at the request of budget-writers to comply with spending limits, according to the Fort Worth Report.
The final approval from the Senate came Wednesday night.
SB 22 marks a record amount of funding for the Texas Moving Image Industry Incentive Program, which received a then-unprecedented $200 million in appropriations in 2023.
Months of star-studded advocacy — actors Matthew McConaughey and Woody Harrelson appeared at the Capitol in support — preceded the bill’s passage.
Before the legislative session, prolific television show creator Taylor Sheridan testified in October for increased film incentives, sharing how he had once written a Texas-set film that ended up shooting in New Mexico because of its lucrative rebate.
“Studios are looking at where they can get their biggest bang for their buck,” Dallas Film Commissioner Katie Schuck told The Dallas Morning News.
In Texas, incentives are grants given to approved projects based on how much money they spend in the state. Funding is broken down into three tiers, with the highest tier receiving the most rewards.
Under SB 22, the highest tier of incentives offers a 25% reimbursement for productions that spend at least $1.5 million in-state. It’s a change from the current funding cycle, where the highest tier has an incentive rate of 20% for at least $3.5 million of in-state spending.
Several provisions in the bill could add to a production’s reimbursement rate by 2.5% each. Those conditions include if a project is faith-based, if at least 5% of its crew are veterans and if it shoots in a rural area. A project can receive an incentive rate of up to 31%.
Industry insiders told The News they’re optimistic the bill will lure productions to Texas.
The 10-year duration of the fund may also quell doubts about the consistency of the state’s media incentives. Funding had fluctuated in the past during the legislative process.
The bipartisan bill has been met with opposition from some Republican lawmakers, including earlier this week.
On the House floor Sunday, Rep. David Lowe, R-North Richland Hills, wore a button that read “No Hollywood Handouts.”
“If we truly believe in a limited government and fiscal responsibility,” Lowe said, “then we cannot justify fueling tax dollars into an industry that mocks our values, undermines our culture and refuses to be held accountable.”
SB 22’s proponents argued that the bill has parameters on what kinds of projects can receive funding. Applications can be denied to projects that contain “inappropriate content” or ones that portray Texas in a “negative fashion,” according to the bill’s text.
Advocates also called the film and TV industry an economic boon to the state.
Before Lowe’s remarks, Hunter listed several productions that have shot around North Texas: The Chosen in Midlothian, Fixer Upper in Waco and Taylor Sheridan’s slew of shows.
He touted the millions of dollars they spent as evidence of money trickling down to local businesses.
“This isn’t Hollywood coming to Texas,” he said. “We’re doing our own thing. We don’t need to be part of them.”
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