A invoice growing the amount of cash the state spends to draw movie and tv productions to Texas has been despatched to Gov. Greg Abbott after lawmakers agreed to decrease what had initially been proposed at first of the 12 months.
Senate Invoice 22, filed by Houston Republican Sen. Joan Huffman, would enable the comptroller to deposit $300 million into a brand new Texas Shifting Picture Trade Incentive Fund each two years till 2035. The Senate’s model of the invoice would have deposited $500 million each two years till 2035. Nevertheless, the Home amended this model of the invoice to decrease it to $300 million, which was accepted 23 to eight by the Senate.
At present, the state offers $200 million each two years for movie incentives, funding for which has been topic to vary each legislative session. SB 22 wouldn’t solely improve the amount of cash, but additionally make the funding constant.
Eligible bills that may very well be paid for by incentives would come with Texas staff’ wages, meals bought from native eating places, and airfare on Texas-based airways.
The Senate additionally agreed with the Home’s proposals to permit productions that use historic websites and people who associate with a college or different larger instructional establishment to qualify for extra incentives.
Final month, Rep. Todd Hunter, R-Corpus Christi, who introduced the invoice within the decrease chamber, launched a proposal to decrease the quantity on the suggestion of the funds committee.
Chase Musslewhite, co-founder of Media for Texas, a non-profit group devoted to boosting the state’s movie and media business, stated she had heard discussions about reducing the $500 million quantity. Nonetheless, so long as the invoice offers greater than $200 million, she stated her group is content material.
“This invoice makes us aggressive with our neighbors in order that we wouldn’t be shedding our tales to New Mexico, Louisiana, and Georgia, nevertheless it wouldn’t make us aggressive sufficient to open the floodgates,” stated Musslewhite. “About six or seven different states nonetheless supply extra or have stronger incentives, and I feel that works completely for Texas. We’re not making an attempt to have all people come right here and be part of the rat race to get extra incentives. We simply wish to be baseline aggressive.”
This invoice has been the topic of commentary and dialogue for a number of weeks now. Critics have been alarmed on the amount of cash that may be given to productions and the potential political and native impression Hollywood might need on Texas.
“This invoice offers taxpayer-funded incentives to the movie and leisure business. The identical business that trashed us for supporting President Trump, mocked us for standing up for the unborn, and ridiculed our Christian religion at each alternative,” stated Rep. David Lowe, R-North Richland Hills, who spoke towards the invoice. “Now we’re anticipated to belief them to provide family-friendly content material and reimburse them $2.5 billion over the following decade. Let’s cease the Hollywood handouts.”
Others have raised issues about how the governor’s workplace will decide which productions to fund. The invoice provides the governor’s workplace full discretion over which initiatives obtain grant funding. Nevertheless, supporters identified that many of those provisions have already been in place, and the invoice doesn’t cease movies from being made; it simply offers further incentives.
In response to the Nationwide Convention of State Legislatures, Texas is one in every of 37 states to supply a movie incentive program. Nevertheless, because of the uncertainty surrounding their incentive program, Texas is way behind states like New York, Georgia, and New Mexico in relation to Westerns and different movie and TV productions.
“There are tons of Texans who dwell in California and New York, everywhere in the globe, who’re pursuing their careers, as a result of these alternatives weren’t right here in Texas,” stated Grant Wooden, co-founder of Media for Texas. “We’ve got basically been subsidizing the workforce of those different states. It’s all about bringing that workforce residence and persevering with to create a extra strong and numerous economic system.”
Since 2007, lawmakers have funded the movie incentive program at various ranges, with $50 million throughout one legislative session adopted by $45 million the following. A then-historic $200 million got here throughout the newest session in 2023.
This system has boosted financial exercise in Texas, producing a 469% return on funding, based on the Texas Movie Fee, although economists and a few Home lawmakers have criticized that metric and denounced movie incentives as wasteful spending.
The invoice has acquired assist from actors like Matthew McConaughey, Woody Harrelson and Dennis Quaid, and creators like Chad Gunderson, who produces the present “The Chosen,” and Taylor Sheridan, who wrote the film Hell or Excessive Water.
“I feel with the movie star energy we now have behind this, as soon as this invoice will get handed, it is going to unfold like wildfire,” Musslewhite stated, mentioning 10 productions are already focused on capturing in Texas.
Along with pumping more cash into movie incentives, SB 22 would make smaller movies eligible for bigger grants. At present, initiatives that spend between $1 million and $3.5 million in Texas are eligible for a ten% rebate, and initiatives that pay greater than $3.5 million can obtain a 20% grant. The invoice proposes a bigger, 25% grant for function movies and tv applications that spend not less than $1.5 million.
Texas’ movie incentive program provides an extra 2.5% incentive to productions shot in sure “underutilized” or “economically distressed areas,” in addition to to these with veterans who make up 5% of the full paid crew.
One of many greatest fears expressed by Republican lawmakers concerning the invoice is the quantity of affect it will give Hollywood executives over Texans. Fears about them reserving stadiums or parks, closing down roads or streets, and taking on different assets are unfounded, Musslewhite stated.
“I’ve all the time discovered this concern attention-grabbing as a result of I feel it doesn’t give sufficient credit score to how Texans function, how robust we’re in our sensibilities, who we’re, and the way we do enterprise,” Musslewhite stated. “As an alternative of fearing what Hollywood will do to Texas, we must be smitten by what Texas will implement on the business.”
Disclosure: Nationwide Convention of State Legislatures (NCSL) has been a monetary supporter of The Texas Tribune, a nonprofit, nonpartisan information group that’s funded partially by donations from members, foundations and company sponsors. Monetary supporters play no position within the Tribune’s journalism. Discover a full record of them right here.
This text initially appeared in The Texas Tribune, a member-supported, nonpartisan newsroom informing and interesting Texans on state politics and coverage.
