Texas Lawmakers Consider Overhaul of Film Incentive Program to Boost Productions

During a legislative session that featured excerpts from popular productions that were produced in Texas as well as testimony from big-name actors like Dennis Quaid, lawmakers discussed the possibility of revising the film incentive program that the state offers. 

Despite the fact that the program has been instrumental in luring successful shows such as "Yellowstone" and "Friday Night Lights," it is currently being evaluated in order to compete with the more advantageous incentives provided by other states.Professionals in the film business highlighted the appeal of Texas, noting the state's diverse landscapes and low cost of living as reasons for their preference. 

However, they stated that projects are being pulled away from Texas because of better financial incentives elsewhere, which is costing the state millions of dollars in potential revenue. The writer and director Taylor Sheridan expressed his annoyance at the fact that the filming of his Texas-based picture "Hell or High Water" took place in New Mexico due to the presence of more favorable incentives.

The program was established seventeen years ago, and it provides rebates ranging from five percent to twenty percent on expenses that meet the criteria, such as the hiring of workers in Texas or the rental of production space. However, funding has been inconsistent, with the budget injection of $200 million in the preceding year being a major increase from the $45 million that was allocated in the previous biennium.

Legislators lauded the program's return on investment, but also pointed out that the absence of state income and property taxes in Texas makes it more difficult to provide tax benefits comparable to those offered by other states. 

In an effort to maintain Texas's competitive position in the film and television production industry, the Senate Finance Committee is currently examining potential ways to improve the program and develop a funding model that is both sustainable and long-term.

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