Perry Signs Film Incentive Bill

Gov. Rick Perry on Thursday signed a bill earmarking at least $22 million worth of incentives for in-state film productions, thrilling the Texas film industry after its push for a nationwide place of prominence.

The law allows projects completed after Sept. 1 to be eligible for a rebate of up to 5 percent of their costs, or a maximum of $2.5 million for television shows and $2 million for feature films. The appropriation is at least $10 million for each fiscal year, though it is limitless – provided the state isn’t losing money.

Film industry analysts say this will attract productions from nearby states with similar incentive laws, like New Mexico and Louisiana, which have siphoned business from Texas.

A film must spend $1 million in Texas to qualify, including wages and equipment. For example, if a production company were to rent vehicles in Texas or to hire a local catering company, it would receive credit for that.

After the project is completed, the company would need to verify the cash it spent. A greater incentive — an extra 1.5 percent — exists for “underserved areas,” which include everywhere but Dallas and Austin.

“The motion picture industry does much more than fill movie theaters with millions of people who love to hear a good story,” Perry said in a prepared statement Thursday. “It creates jobs, builds the economy and serves as an incubator for the development of the creative arts industry, as does the production of television programs, television commercials and video games.”

Janis Burklund, head of the Dallas Film Commission, said the incentive program will make Texas more competitive and help it retain shows shot here, like “Barney” and “Prison Break.”

“We think it’s a really great start,” Burklund said, noting those closely involved will probably make another run at the legislature next session to bump up the figures. “It’s going to maintain what we already have, and it’s going to help us grow.”

Garry Potts, a Dallas-based producer, said this is the culmination of an enormous, statewide effort on the part of hundreds of Texas film professionals.

“This time, we finally got the lawmakers to realize how many working Texans — all over the state — depend on film production to feed their families,” Potts said. “All other things being equal, most out-of-state producers prefer shooting here, (a) because of the quality of our overall film infrastructure — equipment, crews — and (b) because of the variety of wonderful filming locations we offer.”

Another version of the bill was passed in 2005, but the legislature never funded it.

Since implementing a similar film incentive program in 2003, Louisiana’s in-state film production spending has increased 30-fold. New Mexico has seen a 50-fold increase in economic activity generated from film production products in the state following its implementation film incentives, according to a news release issued by Perry’s office Thursday.

The Texas Film Commission says at least 32 film projects in the last four years that researched Texas for their production locations chose other states that offered film incentives. The commission said those projects would have brought in an estimated $327 million in project spending and 4,600 jobs.