AUSTIN, Texas – It is a Texas-sized statement to say the state could be the nation’s film capital. Still, lawmakers and other figures in Austin certainly think the limelight is possible as the 89th Texas Legislature drives forward.
The issue of padding the state’s film industry incentives is likely going under the lens again, especially as media figures like Matthew McConaughey and Woody Harrelson lend their support.
Recommended Videos
During the last legislative session in 2023, lawmakers pumped $200 million, with a 22.5% rebate over two years, in incentives for film and video game developers to receive tax exemptions on projects through the Texas Moving Image Industry Incentive Program (TMIIIP).
Given the movements of some lawmakers and the lieutenant governor, legislation impacting the industry could be passed by the end of the session in June.
WATCH BELOW: How are TV shows and movies shot in SA? KSAT Explains
Film at the Texas Legislature: How lawmakers are pushing
While the state’s film industry was a significant focus during the last legislative session, actual bills filed so far for the 89th session are few; the only House bill, so far, is a refiled one from two years ago.
That bill, House Bill 1452, was filed early by Rep. Giovanni Capriglione (R-Southlake) in November.
However, Lt. Gov. Dan Patrick considered film on a list of priority bills released at the end of January. Traditionally, bills numbered one through 20 are considered priorities by the lieutenant governor.
Senate Bill 22 — aptly described now as “Establishing Texas as America’s Film Capital” — and a subsequent House Bill will represent the legislature’s investment in supporting the film industry, according to an Instagram reel by Media for Texas, a nonprofit advocating for the legislature’s support of the film industry in the state.
- Both bills have yet to be filed but are expected to be completed as the legislative session progresses.
- SB 22 will allocate $498 million for film incentives, according to Media for Texas.
- The funding will remain part of TMIIIP and bolster the program further.
Funding will come in two parts: $48 million in grants for small films and commercials, and up to $450 million in new tax credits, including residency requirements for workers, according to Patrick’s release.
Will Texas be the new Hollywood?
Is Texas going to be the nation’s new film capital? That remains to be seen, but Patrick and others would like to see it so.
The calls for support echo far and wide, and some of those signaling their support for more incentives are coming beyond the walls of the capitol.
Celebrity media figures from McConaughey to Harrelson appeared in a rather pointed video urging lawmakers to approve additional film funding. Dennis Quad, Billy Bob Thornton and Renée Zellweger also appeared in the video.
As for how Texas could heed Patrick’s calls, Chase Musslewhite, a founder of Media for Texas, told KSAT it comes down to three points:
- Establish a reliable, long-term funding model.
- Increase the incentive base rate.
- Protect the 3 Ts: Texas, Texans and TMIIIP
Musslewhite said Texas' two-year funding cycle could create uncertainty, especially as film and TV productions seek predictability.
“Without guaranteed incentives, productions set to film just months after a funding window closes must relocate—redirecting millions to states like Georgia and New Mexico," Musslewhite said.
Media for Texas proposes continued investment in TMIIIP and changing the base rate of the rebate from 22.5% to 30%.
Media for Texas believes the latter would significantly benefit independent filmmakers in the state, what it calls “the lifeblood of the state’s film industry.”
“Our goal is to incentivize Texans to remain in Texas and do business in Texas. We don’t need to become the most competitive program in the country to achieve this goal, but we do need a return rate that is competitive enough to get Texas on the playing field,” Musslewhite said.
With these proposed investments, Musslewhite and Media for Texas want to ensure in-state spending and hiring occurs.
The group’s advocacy hopes the existing TMIIIP program is bolstered.
“We are not advocating for a new program, but we are pushing for some enhancements to our current one,“ Musslewhite said. ”With TMIIIP enhanced, this program will be an economic booster and job creator like the state has never seen!"
Musslewhite said if lawmakers choose to boost the changes, Texas could see:
- Billions in economic impact from production spending and studio development.
- More film and TV productions shooting in Texas, thereby retaining Texas crews and talent.
- Establishing Texas as the epicenter of American entertainment.
“Texas already has the landscapes, the talent, and the spirit—now it just needs the policies and infrastructure to match,“ Musslewhite said. ”With the right strategy, Texas could truly become America’s Film Capital.
Texas is ‘well-positioned for success’
Some universities in Texas have already benefited from part of Capriglione’s refiled bill.
Language in both pieces of legislation described the creation of virtual film production institutes at Texas State University and Texas A&M University in College Station and Fort Worth.
Texas A&M’s institute received $25 million for the “first of its kind” project, funded by $1.19 billion allocated across the system by the 88th Texas Legislature.
Despite HB 1452’s language suggesting Texas State receive funding for a virtual production studio, Johnny McAllister, an associate professor and head of the university’s film program, said that was not the case. Rather, the studio had been in operation for several years.
Ripples in San Antonio
The San Antonio Film Commission, citing the TMIIIP investment, saw a “strong uptick in inquiries from prospective projects.”
In Fiscal Year 2024, 416 permits were issued for filming on city-owned property, a 72% increase from the prior fiscal year, according to an email from Stacey Norton, film and music administrator for the City of San Antonio.
San Antonio has also equipped itself to compete with other cities, namely through its own local incentives program.
The state’s program can be combined with the city program, which offers up to a 7.5% rebate on approved San Antonio spending and eligible expenditures for qualified projects.
“This is the most competitive city-based film incentive program in the state of Texas,” Norton said.
Norton — when describing the size and caliber of productions filming in San Antonio — highlighted the Paramount+ show “1923″ utilizing part of downtown last September.
Retaining Texas talent a ‘topic of concern’
Last year, McAllister said he and associate film program head Annie Silverstein met with Paramount Studios and found the biggest impediment to the state landing more productions was the size of its workforce.
“There is a clear need for more educational opportunities to become a real force,” McAllister said. “Our program has a unique vocational component, so we think we’re well placed to serve that need. More funding would help us get there.
Despite the infancy of UTSA’s film program — it began as a Bachelor of Arts in Fall 2022 — it is seeing graduates take on jobs across the film industry in Texas.
One is working in video production for the City of San Antonio, and another is working as a media assistant for Monk Jazz Club, a live music venue in Austin, said Paul Ardoin, associate professor and director of the film and media program at UTSA.
“We have the educated and talented workforce; we have the incredible locations; the state and cities of Texas are working on the incentives; and significant soundstage and backlot space would add much to the facilities box,” Ardoin said.
The program is equipped with faculty with expertise across a swath of film and media.
Students can take classes production classes from local artists such as Guillermina Zabala Suárez, whose work has been displayed nationally and internationally. In contrast, others can put pen to paper in screenwriting courses taught by John Herrera, whose screenwriting credits include “The Handmaid’s Tale.”
Last April, the UTSA program inked a partnership with A24, the production company lauded for films such as “Queer” and “The Brutalist.”
As for graduate retention at Texas State, McAllister said it was definitely a topic of concern.
The program regularly surveys alumni; the most recent survey showed about 60-70 graduates were still working in a media-related role, McAllister said.
“That might be running the in-house production office for a high-tech company in Austin, or it might be crewing on ‘Walker’ or ‘Fear of the Walking Dead’ in Austin,” McAllister said.
However, McAllister said other past surveys indicated a clear desire among graduates to work in Texas productions.
With expectations of some new productions coming into the mix this year, McAllister said alumni have the chance to be busy again.
“There is a clear desire to stay in Texas or return to Texas eventually. About 90% have indicated a desire to work in Texas,” he said.
Related coverage on KSAT: