TEXAS — This legislative session, $498 million—more than double the last budget—has been proposed by the Texas Senate to overhaul its film incentive program, rivaling most other states’ funding.
Senate Bill 1, filed Jan. 22, proposes a $332.9 billion state budget for 2026-27, including that $498 million for Texas filmmaking, pending approval.
The new funding provides $48 million in grants for small films and TV commercials, plus up to $450 million in tax credits.
Grant Wood, a co-founder of Media for Texas, stated that numerous productions, potentially filmed in Texas, relocated to other states due to insufficient financial incentives. Some notable examples Wood provided include, “Hit Man,” “Hell or High Water” and “Iron Claw.”
Numerous Texas-based films utilize locations outside Texas, such as New Mexico, Louisiana, Georgia and more.
To vitalize Texas’s film industry, Media for Texas is working to attract productions through enhanced incentives and sustained growth by connecting filmmakers, businesses and policymakers.
Media for Texas advocates for a long-term, transferable tax credit program to replace the current two-year grant system. Increased competitiveness and sustainability in the program would lead to more productions, job creation, new studios and support for local businesses.
According to the National Conference of State Legislatures, Texas is among 37 states that provide a film incentive program. These programs may involve cash grants, such as those in Texas, or tax credits like those offered by competitors like Georgia and New Mexico.
“If we get the right incentives in place, Texas can be a powerhouse for film and TV production. That includes more high-profile projects and more job opportunities for local crews,” Grant Wood said. “Texas has the talent and resources - it’s just a matter of creating the right environment for productions to thrive. The sky is the limit with a strong incentives package. We will see more and more authentic Texas stories on screen.”
The film and TV industry is a major economic force; it generates employment, sustains local businesses (e.g., hotels and restaurants) and stimulates tourism. The Texas Economic Development and Tourism division reports that, for each grant dollar, $4.69 is spent within the state.
An informative and entertaining event on film and TV production was organized by Media for Texas at South by Southwest for Austin residents and visitors. The event showcased the talent behind films and TV shows including “Dazed & Confused,” “Landman,” “Spy Kids,” “Friday Night Lights,” “Yellowstone,” “Hit Man” and others, through a live set and demonstrations.
Chase Musslewhite, co-founder of Media for Texas, said that the nonprofit wants “Texas to be a self-sustaining media powerhouse - a place where productions aren’t just made but where industry professionals can build lasting careers and livelihoods. To do this, we need more infrastructure, investment, and a broader community of filmmakers and media professionals. An increased incentives program will help bring this into reality.”