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Published on October 10, 2024
Texas Lawmakers Consider Boosting State Film Incentives Amid Competition from New Mexico and GeorgiaSource: Google Street View

In a notable push to make Texas a prime location for film and television production, state lawmakers are expressing a willingness to reevaluate, and potentially expand, the state’s film incentive program. At a legislative hearing, Dennis Quaid and other industry professionals highlighted the appeal of Texas' diverse landscapes and reasonable living expenses. Yet they emphasized that more generous incentives from other states are siphoning off talent and potential revenue, as reported by the Texas Tribune.

Taylor Sheridan, who penned 'Hell or High Water', voiced his frustration to lawmakers about the film being shot in New Mexico despite its Texas spirit. Since its inception 17 years ago under former Gov. Rick Perry, Texas has lured productions with grants that rebate 5 to 20 percent of eligible in-state expenditures. Nevertheless, these funds are finite, capped by budget cycles, which may lead to uncertainty among filmmakers. "One of my great frustrations was that I wrote ‘Hell or High Water,’ and they filmed the darn thing in New Mexico," Sheridan told AP News.

The economic impact of the program seems evident. Adriana Cruz, executive director of the Texas Economic Development and Tourism division, mentioned a 469% return on investment for the state — a impressive, figure that translates to $4.69 spent in Texas for every dollar allocated to the incentive. This initiative has not only spurred state spending to exceed $2.5 billion but also fostered the creation of over 189,000 jobs, as per information from the Texas Tribune.

Despite these strong results, Texas faces stiff competition. States like New Mexico offer rebates up to 40%, while Georgia grants a 30% tax credit without a cap. Texas’ lack of a state income or property tax eliminates the option for tax breaks, necessitating consideration of alternative incentive models. "I just think we are being naive," Sen. Charles Perry, R-Lubbock, pondered over the potential of igniting an incentive bidding war, according to Texas Tribune.

Moreover, the incentive program's shortcomings seem to carry ramifications for local talent as well. John Fleming, dean of the College of Fine Arts and Communication at Texas State University, pointed out that a majority of graduates from their film program left the state due to inadequate job opportunities. Proposals for enhancing incentives have been brought to the table, including a franchise tax credit or a constitutional amendment to create a dedicated fund, echoes Chase Musslewhite, co-founder of Media for Texas and Texas film producer, striving to pave a stable path for the industry's development within the state, as AP News detailed in a recent story.