S.B. No. 22 - Texas Moving Image Industry Incentive Program and Fund
Summary:
S.B. No. 22, effective September 1, 2025, amends the Texas Government Code and Tax Code to enhance the Texas Moving Image Industry Incentive Program by establishing the Texas Moving Image Industry Incentive Fund, funded by a $500 million biennial tax revenue deposit. The bill expands grant eligibility, introduces new grant categories, and grants the Music, Film, Television, and Multimedia Office discretion to deny applications based on content deemed inappropriate or negative toward Texas. The fund and related provisions expire on August 31, 2035, with unspent balances transferring to the general revenue fund.
Key Provisions:
Legislative Intent (Sec. 1.01):
Office may deny grants for projects with inappropriate content or negative portrayals of Texas/Texans, considering decency and diverse citizen values.
Texas Moving Image Industry Incentive Fund (Sec. 485.0225):
Established outside the state treasury, held/invested by the Texas Treasury Safekeeping Trust Company, administered by the Office.
Funded by legislative appropriations, dedicated tax/fee proceeds, investment earnings, and gifts/grants/donations.
Used for grants and trust company expenses, with investments aimed at liquidity and preserving purchasing power.
Receives $500 million biennially from tax revenues (Sec. 151.801(g)).
Grant Program Enhancements (Sec. 485.022):
Administered using the incentive fund or other available funds.
Ineligible projects include pornography, news, political ads, local events, student projects, and more, with Office discretion to designate additional ineligible types.
Office reviews proposed/final content, may deny applications, and can rescind preliminary approvals.
Qualification Requirements (Sec. 485.023):
Minimum in-state spending: $250,000 (film/TV), $100,000 (commercials, educational videos, digital media).
Texas resident crew/actors/extras: phased increase from 35% (2025) to 50% (2031), waivable if insufficient qualified personnel.
At least 60% of filming in Texas, with detailed budget documentation.
Grant Amounts (Sec. 485.024):
Feature films/TV (non-reality), visual effects: 5% ($250,000-$1M), 10% ($1M-$1.5M), 25% (≥$1.5M) of in-state spending.
Digital media: 5% ($100,000-$1M), 10% ($1M-$1.5M), 25% (≥$1.5M).
Reality TV: 5% ($250,000-$1M), 10% (≥$1M).
Commercials/educational videos: 5% ($100,000-$1M), 10% (≥$1M).
Additional Grants (Sec. 485.025):
Texas Heritage (2.5%): Promotes family values or positive Texas portrayal.
Rural Filming (2.5%): ≥35% filming in counties with ≤300,000 population.
Postproduction (1%): ≥25% in-state spending on postproduction.
Texas Veterans (2.5%): ≥5% crew/actors/extras are honorably discharged Texas veterans.
Faith-Based (2.5%): Designated by Office.
Total grants capped at 31% of in-state spending.
Sunset Provisions (Sec. 3.01-3.06):
Fund and related provisions expire August 31, 2035; unspent balance transfers to general revenue.
Post-2035, grants revert to prior rules, requiring 55% Texas resident crew and calculated per Office rules.
Grants awarded 2025-2035 follow amended rules; post-2035 grants follow revised rules.
Pros:
Economic Boost: Significant funding ($500M biennially) incentivizes film/TV production, boosting employment and tourism.
Cultural Alignment: Content review ensures projects align with Texas values, potentially enhancing state pride.
Diverse Grants: New categories (heritage, veterans, faith-based) encourage varied projects and rural investment.
Temporary Fund: Sunset provision limits long-term financial commitment, with reversion to flexible funding model.
Cons:
Content Restrictions: Subjective denial criteria (e.g., “negative portrayal”) risk censorship and First Amendment challenges.
Administrative Burden: Content reviews, detailed budgets, and phased resident requirements may strain Office resources.
Funding Allocation: $500M biennial commitment may divert funds from other priorities, with no guarantee of proportional economic return.
Exclusionary Criteria: Ineligibility of certain projects (e.g., student films, news) may limit creative diversity and local talent development.
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