The Texas Film
Incentive, Explained

01 — What changedSenate Bill 22, and why it matters

The Texas Moving Image Industry Incentive Program (TMIIIP) has existed since 2007, but for years it lived hand-to-mouth: the Legislature funded it one budget cycle at a time, and productions could not count on the money being there. Senate Bill 22, passed by the 89th Texas Legislature and signed in 2025, changed the math. It created a dedicated, standing fund for the program and set it on a course of roughly $1.5 billion over ten years — by a wide margin the largest state commitment to film and television production in Texas history.

Guaranteed money is the whole story. A studio developer can now underwrite a multi-year, multi-stage campus knowing the rebate that draws productions to Texas will still be funded when the doors open. That certainty is what turned a handful of announcements into the buildout ATX Lot tracks on the studio directory.

02 — The grantHow the rebate is calculated

TMIIIP is a cash grant, not a transferable tax credit. A qualifying project spends its money in Texas, documents that spend, and — after the work is done and audited — receives a grant calculated as a percentage of its eligible in-state spending. Because it is paid on verified spend rather than sold as a credit, there is no broker and no discount: the percentage you qualify for is the percentage you get back.

The base grant scales with how much a production spends in the state, and a set of additional grant awards layer on top. Texas Film Commission uplifts reward projects that shoot in underused or economically distressed areas of the state, that keep post-production work in Texas, and that qualify as Texas Heritage productions. Stacked together, the base grant plus uplifts reach a ceiling of up to 31% of eligible spend.

03 — Do you qualifyThe eligibility thresholds

TMIIIP is built to keep the money and the jobs in Texas, so eligibility turns on how much of the production is genuinely Texan. The core thresholds a film or television project must clear:

• $250,000 minimum in eligible Texas spending for a film or television project.
• 60% of the production must be completed in Texas.
• 35% of the paid crew must be Texas residents.
• 35% of the paid cast must be Texas residents.

Different thresholds apply to commercials, video games, and other formats, and every project also has to clear a content-review step — the program can deny funding to productions that portray Texas or Texans in a way the Commission judges inappropriate. Getting the paperwork and residency documentation right is where most of the real work lives.

04 — StackingWhere cities add to the state number

The state grant is not the end of it. Several Texas cities run their own incentive programs that can be combined with TMIIIP. Austin’s Creative Content Incentive Program and San Antonio’s local rebate — reported at up to an additional 14% — are the best known. Layered on top of the state grant, local programs can push a production’s combined rebate to roughly 45% of eligible spend. That stacked number is a large part of why Central Texas, and not just the traditional coasts, is now competitive for major productions.

05 — The payoffWhat the money is building

The incentive is abstract until you see the concrete. Since SB22, Central Texas has drawn a wave of studio development: 204 Texas broke ground on a nearly 600-acre film campus in Bastrop; Wyldwood Studios, backed by actor Zachary Levi, is rising nearby; Stray Vista Studios in Dripping Springs opened what it bills as the largest LED volume in Texas; and Hill Country Studios is in development in San Marcos. Track the full board on the ATX Lot studio directory, and go deeper on the Central Texas cluster at TV ATX.

06 — FAQTexas film incentive, answered

How big is the Texas film incentive?

Senate Bill 22 (2025) funds the Texas Moving Image Industry Incentive Program (TMIIIP) at roughly $1.5 billion over ten years — by a wide margin the largest state commitment to film and television production in Texas history.

What is the maximum rebate a production can get?

The base grant plus Texas Film Commission uplifts stack to a ceiling of up to 31% of eligible Texas spend. Layered with city programs such as Austin’s Creative Content Incentive and San Antonio’s local rebate, a production’s combined rebate can reach roughly 45%.

Is TMIIIP a tax credit or a cash grant?

It is a cash grant, not a transferable tax credit. A project spends and documents its money in Texas, and after the work is audited it receives a grant calculated as a percentage of verified eligible in-state spending — so there is no broker and no discount.

What are the eligibility thresholds?

A film or television project must spend at least $250,000 in eligible Texas costs, complete 60% of the production in Texas, and have 35% of paid crew and 35% of paid cast who are Texas residents. Different thresholds apply to commercials, video games and other formats.

Why did the incentive drive new studios in Bastrop and the Hill Country?

Guaranteed, multi-year funding is the whole story. A developer can now underwrite a multi-stage campus knowing the rebate will still be funded when the doors open — which is why 204 Texas, Wyldwood, Stray Vista and Hill Country Studios all broke ground or expanded after SB22.