The Texas Legislature has proposed a nearly $500 million injection into the Texas film and media production industry. The proposal, part of Senate Bill 1, or SB 1, aims to establish Texas as the film capital of America by bringing blockbuster productions to the state and subsidizing small media corporations.
The proposal includes $450 million in tax credits for studios that choose to film large-scale movie and television productions in Texas and $48 million in grants for smaller Texas-based companies. In order to receive the tax credits, production companies must also complete residency requirements by verifying that a certain portion of their crew are Texans.
SB 1, authored by Senate Finance Chair and Senator Joan Huffman (R-17), is the introduced state budget for the 2026-27 biennium. It was filed by Lt. Gov. Dan Patrick on Jan. 22 and has since been working its way through the Senate Finance Committee.
“My budget team and I have worked alongside Chair Huffman and the Senate Finance Committee to ensure the Senate’s state budget reflects the conservative priorities of Texans,” Lt. Gov. Patrick wrote in a statement released Jan. 22. “SB 1 maintains our promise to Texans by keeping our state on a conservative path to greater prosperity.”
Across Texas, industry professionals are optimistic about what the proposal could mean for the state’s film and media landscape. Brian Cunningham, managing partner and screenwriter for Bryan-based talent organization NPT Network, hopes the incentives will open doors for state actors and writers.
“I would love to see Texas really putting a priority on smaller, independent production companies,” Cunningham said. “I also love the idea of [Texas] taking a larger step into the industry as a domestic whole. … It would be incredible for us locally, not only from a work opportunity standpoint, but tourism and everything that comes along with it.”
Historically, the state’s film industry has been sporadic. Larger cities such as Los Angeles and New York City have a deeper filmmaking culture that far predates that seen in Texas. However, career professionals argue that Texas brings certain things to the table that other film capitals of America cannot.
“Right off the gate we’re talking about location, location, location,” Cunningham said. “Varied location, varied terrain, wide open space. There’s also opportunities for new sound-stage growth, which we’re already seeing in places like Mansfield, Bastrop and San Marcos. We’ve got manpower. We’re a huge state with an incredible workforce and people who have a natural sort of determination to work hard.”
Despite being overlooked in the past, Texas has seen a significant rise in filmmaking interest and experience in recent years. The biggest example is Austin, where movies such as “Boyhood,” “Idiocracy” and “Dazed and Confused” were largely filmed. Texans in other parts of the state hope the increased interest in Austin could correlate with a larger interest across the state.
“People in other areas are getting wise and seeing what we have to offer,” Cunningham said. “I think if Texas is willing to play ball with that, it will create a lot of opportunities for Texans.”
Texas lawmakers have experimented with similar film incentive programs before. In 1971, the Texas Film Commission, or TFC, was established in response to the rapid growth of American cinema.
Since then, the Texas Legislature pursued its goal of revamping the state into a media production hub. Former Gov. Rick Perry shared similar motives, forming the Texas Moving Image Industry Incentive Program, TMIIIP, in 2007. Through this, the TFC was able to provide grants and other financial incentives.
Many argue that the state’s younger reputation within the film and television industry is not largely to blame but instead the state’s uncompetitive tax credit system. Budding media hotspots like Atlanta are often chosen as film locations because of Georgia’s attractive tax incentives, while cities such as Houston or Dallas are disregarded.
“‘Dallas Buyers Club’ with Matthew McConaughey … that was all shot in Louisiana,” professor of performance and visual studies Daniel Humphrey said. “The actual film was all shot in and around New Orleans because of Louisiana tax credits.”
Filmmakers and academics also note that Texas cities lack the necessary infrastructure. The absence of production companies, media rental equipment services and talent agencies are disincentives financially to shoot on-location.
“Depending on what city you’re talking about, there isn’t an infrastructure that supports big film productions,” Humphrey said. “If you want to shoot your film in downtown Houston and you needed, you know, a bunch of craft services people, a bunch of big trailers for the stars and equipment like cranes and tracking to be laid down, there isn’t nearly as much of that stuff to rent in Houston from anyone.”
Policies within existing tax credit systems are also a point of contention with large-scale production studios. In 2016, a Texas appeals court ruled that the TFC was legally allowed to deny tax credits to the producers of the 2010 film “Machete,” claiming that the film portrayed the state of Texas in an overtly negative light.
“That had a chilling effect on people, undoubtedly,” Humphrey said. “I don’t want to be promised tax credits and then, because someone thinks I make Galveston or some part of Texas look ugly or that some of the people in Texas look stupid, I don’t want to not get that money, because I’ll be in big trouble.”
SB 1 has been left pending since March 12 and is expected to be fully drafted, presented and voted on before the 89th Texas Legislature adjourns on June 2.
