August 20, 2026

A $1.5B Bet on Media: How SB 22 Is Reshaping Texas’s Creative Economy

Texas has made one of the largest long-term commitments to media production in the U.S., with $1.5 billion in funding over the next decade through SB 22, a law that came into effect on September 1, 2025, to expand Texas film incentives. For companies evaluating where to produce, this changes the map—introducing stability, scale, and a clearer path to ROI.

What Will SB 22 Do for The Creative Economy in Texas?

Historically, the Texas Moving Image Industry Incentive Program has delivered strong returns: $4.69 in in-state spending for every $1 invested, according to a state-backed economic impact study. SB 22 is taking this ROI one step further, transforming incentives from short-term funding cycles into a predictable, long-term strategy that will cause a major boom.

This level of investment fuels crew hiring, local vendor spending, and tourism exposure tied to filmed locations. With expanded funding, the Texas creative economy is positioned to scale across multiple regions, from the Austin region for business to the North Texas production hub, creating a broader statewide production footprint with far-reaching benefits.

Who Qualifies for SB 22?

SB 22 expands eligibility across the full spectrum of the Texas moving image industry, including:

  • Studios & streamers
  • Game developers & VFX studios
  • Agencies & commercial production
  • Emerging tech (XR/AR)

Qualifying projects can receive grants of up to 31% of in-state spend, depending on scope and structure, positioning Texas as a serious option for both traditional production and next-gen digital content.

How Do Texas Film Incentives Work?

The more a project invests in Texas-based labor, vendors, locations, post-production, and related services, the stronger its potential incentive value.

Texas production incentives are administered through the Texas Moving Image Industry Incentive Program (TMIIIP), which provides qualifying productions with a cash grant based on a percentage of eligible in-state spending. Eligible expenses can include qualified Texas expenditures and wages paid to Texas residents, making the program directly tied to local hiring and in-state economic activity.

Under SB 22, productions may qualify for base grants ranging from 5% to 25%, depending on the project type and total in-state spending. Feature films and television programs with at least $1.5 million in eligible Texas spending may qualify for the 25% base grant, while additional bonus tiers can help qualified projects reach a maximum grant of 31%.

Eligible production categories include:

  • Film and television projects
  • Commercials
  • Video games
  • Animation
  • Visual effects
  • Extended reality, including augmented reality (AR), virtual reality (VR), and mixed reality (MR) productions

Why Texas Expanded Film Incentives Now

Texas has historically lost productions to states with more aggressive incentives. SB 22 directly responds to these losses, combatting the outmigration of productions to Georgia, New Mexico, and Louisiana.

It also meets industry pressure from creators and producers calling for competitive funding and acts as a broader push to compete as a tech-enabled creative hub, supported by the strong Texas business climate and growing digital infrastructure

Ultimately, SB 22 ensures more cohesive strategy that aligns media production with Texas’s broader economic growth priorities.

Texas vs. Georgia and New Mexico: How Incentives Compare

Texas has long had the talent and infrastructure but lacked consistency in funding. SB 22 addresses that gap with:

  • Funding stability: A decade-long commitment reduces uncertainty for studios
  • Competitive incentives: Up to 31% rebates now rival top states
  • Ecosystem growth: Continued investment in workforce and infrastructure

While Georgia and New Mexico still have mature production ecosystems, The Lone Star State now combines incentives with advantages like Texas quality of life and access to expanding economies.

Texas Is Positioning Itself as the Next Major Production Hub

Texas is no longer a secondary filming location. It’s building toward top-tier production hub status. With SB 22, companies in media, entertainment, gaming, and digital production can:

For companies evaluating expansion or relocation, the next step is understanding how your project fits within Texas’s broader incentive and site selection landscape. The Texas Economic Development Corporation (TxEDC) plays a key role in this process by marketing Texas as a premier destination for business investment and helping connect companies with the right regional and state-level resources.

For project-specific support, including incentives, site selection, and formal expansion processes, companies should ultimately engage with The Office of the Governor’s Texas Economic Development & Tourism Office.

If you’re exploring opportunities in the Texas moving image industry, connect with TxEDC to get introduced to the right partners and begin evaluating your path forward in Texas.