SENATE PASSES ENHANCED MOVIE INCENTIVE PROGRAM

(AUSTIN) - The Senate approved Wednesday a plan that would infuse $2.5 billion in state dollars over the next ten years into a fund to bring more movie and TV show productions to Texas. The Texas Moving Image Industry Incentive Program was created in 2007 to entice productions to the Lone Star State by offering rebates on money spent to hire Texas labor and buy Texas goods, but funding has been inconsistent. Last session saw the largest outlay towards the program in the form of a $200 million biennial appropriation, but SB 22, by Houston Senator and Finance Committee chair Joan Huffman, would more than double that amount while adding stability and certainty to the program going forward. Right now, she said, Texas is losing out to other states with more robust film incentive programs. Beefing up the state's existing system and creating a reliable revenue stream will change that. "[It] gives certainty to the industry and the investors who want to bring these great jobs to Texas," said Huffman.

Huffman told members that the program has been a success over its nearly 20-year history, creating 189,000 jobs and spurring $2.5 billion in economic impact. For every dollar put into the grant program, the state has reaped almost five dollars in economic activity. Her bill keeps the framework that determines standards and rules for incentives intact. It allows the Office of the Governor, which administers the program, to reject grant applications for any reason, including objectionable content or negative portrayal of Texas or her residents. Receipts are carefully reviewed, she said, and grants are only awarded after completion of the project and only if they meet all the standards set by the incentive program. Rebates are given out only on money spent in Texas - up to 25 percent of spending - and only on projects that shoot at least sixty percent of the production in the state. Eligible expenses include wages paid to Texas residents, money paid to companies based in Texas, even flights on Texas-based airlines to and from the state. "It's all Texas based, and it all has to be tied to impact in the state of Texas," said Huffman.

The program also includes a number of sweeteners that can raise the cap on reimbursements as high as 31 percent if a production meets certain conditions. They can receive an additional 2.5 percent each for filming in rural Texas, for hiring Texas military veterans, and for achieving the "Texas Heritage" status by promoting Texas and family values. An amendment to the bill would add family and faith-based projects to these enhancements, a priority of Lt. Governor Dan Patrick. "All of the filmmakers in the faith and family category say we will become the leader in the world for faith-based and family movies of all faiths and all families, and that's always a good thing, to sell our Texas values, our faith values and our family values to the world," he said. Film and TV shoots can also earn an additional 1 percent rebate for completing post-production, things like editing, scoring, and visual effects, here in Texas.

A number of members rose to speak in support of the bill. Weatherford Senator Phil King said that productions in his district are an economic boon to those communities, and bring advantages that go beyond the balance sheet. "The small jobs, the opportunities, the restaurants that are full, the equipment rentals….I can tell you I can really see it in Weatherford and Weatherford has never had anything to do with the film industry until the last few years." For Houston Senator Carol Alvarado, making movies here is more than just about economics, it's about telling our own stories right here at home -it's about state pride. "This bill modernizes and strengthens our moving image industry incentive program to make sure that when a production wants wide skies, urban hustle, or Texas grit they don't go looking in New Mexico, Georgia, or California; they stay here," she said. "Let's make sure that when it's Texas in the script, it's Texas on the screen."

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