Texas film incentives

It is a grant, not a tax credit. Texas has no state income tax, so there is nothing to transfer or sell: approved productions are paid by the state after they wrap and their Texas spending is reviewed. The percentage applies to eligible spending in Texas, including wages paid to Texas residents. Only the first $1 million paid to any one Texas resident counts, and there is no per-project dollar cap. Program page.

The program was rebuilt by Senate Bill 22 in 2025. It took effect September 1, 2025, and the Governor's office adopted the matching rules on July 12, 2026. Adopted rules.

Animation is paid at the film/TV or commercial rates, depending on what it is made for.

Each adds to the base rate, and they stack, up to 31% of in-state spending. They must be claimed on the application; they can't be added later. Add-on details.

• Rural filming, +2.5%: 35% of filming days in counties of 300,000 people or fewer. That is every county except Harris, Dallas, Tarrant, Bexar, Travis, Collin, Denton, Fort Bend, Hidalgo, El Paso, Montgomery, Williamson, Cameron, Brazoria, Bell, Galveston, Nueces and Lubbock.
• Texas veterans, +2.5%: Texas-resident veterans make up 5% of paid crew and cast, extras included.
• Historic sites, +2.5%: 5% of production days at a Texas Historical Commission site or a National Register listing.
• Workforce development, +2.5%: a training partnership with a Texas college or university.
• Postproduction, +1%: 25% of eligible Texas spending is in post.
• Texas heritage and faith-based, +2.5% each: written into the law; the rules to award them were still pending at the last rule adoption.

• At least 60% of the project is filmed or completed in Texas.
• At least 35% of paid crew and, separately, 35% of paid cast are Texas residents. The share rises to 40% for productions starting in September 2027, 45% in 2029 and 50% in 2031. Residency is proven with the state's Declaration of Texas Residency.
• Not eligible: news, sports, award shows, political ads, student projects and a few other categories set by statute.
• The state reviews content. By law it can deny or rescind a grant for content it judges inappropriate or that portrays Texas or Texans negatively.

1. File the Incentives Inquiry Form. If the project fits, the incentives team sends an application link good for seven days.
2. Apply no earlier than 180 days, and no later than 5 p.m. on the fifth business day, before production begins. Send the application form, a Texas-only budget, and a script, outline or treatment.
3. Approved projects get a conditional award letter and sign a grant contract within 45 days. Money is reserved once the W-9 and payee forms are in.
4. Confirm the start date within five business days of principal photography, post a crew call on the Texas Film Commission Job Hotline, and file quarterly status reports.
5. Within 60 days of your last Texas expense, submit final spending documentation and the finished content, with the Texas Film Commission logo in the credits.
6. After the commission's review and a state compliance review, the grant is paid. There is no fixed timeline.

Funding is first come, first served, and the state says to call early. Incentive FAQ · Program guidelines (PDF).

• Sales tax: equipment and services used directly in production are exempt (6.25% to 8.25% saved), with or without the grant. Give vendors Form 01-339 before you pay. Comptroller guide.
• Hotel tax: stays of 30 or more consecutive days are exempt. Tell the hotel in writing at check-in to be exempt from day one. Details.
• Fuel tax: tax on gasoline burned off-road in generators and equipment can be refunded within a year. Details.
• Building a stage: the Media Production Development Zone program can exempt construction of production facilities from sales tax for up to two years.

The state’s list of local programs.