As the Texas Senate Finance Committee gathered for a star-studded session on Thursday, the focus wasn’t on the usual legislative fare. This time, the big-ticket item was how to make Texas an even bigger player in the world of film and TV production, with heavy hitters like Dennis Quaid and Yellowstone creator Taylor Sheridan taking the stage to advocate for the Texas Moving Image Industry Incentive Program (TMIIIP).

Over the years, film incentives have been an easy target for political posturing, especially for those looking to score points by railing against Hollywood. However, behind closed doors, Texas politicians—like Gov. Greg Abbott and Lt. Gov. Dan Patrick—have been major supporters of the program. Gov. Abbott, while not as publicly enthusiastic as his predecessor, Rick Perry, has quietly backed efforts to lure production dollars to the Lone Star State, and Patrick made it a priority for the Senate to explore ways to strengthen the TMIIIP ahead of the 2025 legislative session.

Big Numbers, Bigger Stars

At the hearing in Austin, Adriana Cruz, executive director of the Economic Development and Tourism division, laid out the program’s economic impact in black-and-white terms. Since its creation in 2007, TMIIIP has generated $2.25 billion in in-state spending, created 189,000 jobs, and delivered an impressive 469% return on investment.

But the real draw of the day was the testimony from Sheridan and Quaid, who underscored how crucial incentives are to keeping productions in Texas. Sheridan, who has almost single-handedly brought a slew of high-profile projects to the state, made it clear: “No one will be here without the incentives.” He emphasized that productions he’s brought to Texas—like the hit Yellowstone spinoff Lawmen: Bass Reeves—have not only boosted the local economy but also convinced crew members and cast to relocate to Texas for the long term.

Sheridan also touched on a challenge Texas has faced for years: losing local talent to states with stronger incentive programs like Georgia and Louisiana. While his productions have helped keep some crews in Texas, the state has historically struggled to retain production staff. This issue is only exacerbated by inconsistent funding for TMIIIP.

A Rocky History of Funding

Despite its benefits, TMIIIP has been plagued by funding volatility. The program, which provides post-production rebates for in-state spending, often runs out of money before the end of the fiscal period. Cruz explained that in 2021, 74% of applicants were either denied or withdrew their applications when they were informed the funds were depleted. The most notable casualty was Fear the Walking Dead, which had spent four years filming in Austin before relocating to Georgia after being told their rebate would be “substantially lower” than in previous years.

This cycle of uncertainty has made Texas a less attractive option for producers and studio executives, who prioritize reliability when planning multi-year projects. Richard Linklater, for instance, had hoped to shoot his latest film, Hit Man, in Houston but had to move production to New Orleans due to a lack of available funds from the incentive program.

Although TMIIIP received a much-needed boost to $200 million for the 2024-25 biennium, there are concerns that this increase—while substantial—is still a temporary fix. Only $45 million was allocated as a baseline for the upcoming biennium, with the rest coming from a one-off grant. The fear in the industry is that, once the supplemental funds are spent, Texas will once again be left with an underfunded program.

As Sheridan pointed out, inconsistent funding creates challenges for long-term productions. “What becomes a challenge for the network is not knowing how much, if any, incentive is going to exist for year three,” he explained, highlighting the need for a steady stream of support to attract not just TV shows but also large-scale feature films.

Culture Wars on the Sidelines

While the main topic of discussion was supposed to be economics, some Republican lawmakers couldn’t resist veering into cultural commentary. Sen. Paul Bettencourt, R-Houston, took the opportunity to criticize the Austin-made film Machete, calling it “a failed cultural model.” Other senators voiced concerns about union involvement in the industry, while Sen. Lois Kolkhorst, R-Brenham, and Sen. Charles Perry, R-Lubbock, raised objections to the content of some films and TV shows.

Still, Sheridan steered the conversation back to the heart of the matter: Texas needs reliable, consistent film incentives if it wants to stay competitive in the rapidly evolving entertainment industry.

The Road Ahead

With the $200 million allocation in motion and 62 projects already approved for incentives, Texas is making strides. However, Cruz noted that the fund is already down to $88 million, raising the possibility that it could once again run dry before the next legislative session can provide more support.

The big takeaway? While Texas remains an attractive destination for filmmakers, the future of the state’s film and TV industry hinges on whether lawmakers can provide the consistent funding needed to keep productions—and the economic benefits they bring—coming to the Lone Star State.

As Sheridan aptly put it: “No one will be here without the incentives.”