Texas is strengthening its position as a production destination at a time when film, television, video games and digital content are increasingly mobile. The Texas Moving Image Industry Incentive Program, known as TMIIIP, has become one of the state’s key tools to attract productions, support local jobs and generate spending across the wider economy.
According to Reel Returns: The Economic Impact of the Texas Moving Image Industry Incentive Program, prepared by Olsberg•SPI for the Texas Film Commission and the Texas Economic Development Corporation, eligible incentivized production expenditure generated an estimated $1.17 billion in total Gross Value Added, or GVA, across Texas between FY15 and FY25 to date.
Over the same period, TMIIIP-supported projects generated $696.5 million in labor income and sustained an average of 1,200 full-time equivalent jobs per year. Full-time equivalent, or FTE, converts temporary, part-time and contract work into the equivalent of year-round full-time employment, offering a more realistic view of production’s employment impact.
The return on public investment is also significant. For every $1 of net investment made through the program, Texas generated an estimated $4.51 in economic benefit, measured in GVA. In practical terms, this shows that the incentive is not simply helping productions choose Texas; it is also creating measurable value for the state economy.
Television Drives the Largest Impact
Between FY15 and FY25 to date, Texas provided around $269.9 million in incentive support through TMIIIP. That investment helped support approximately $1.75 billion in qualified in-state production expenditure across 511 projects. Qualified production expenditure means the eligible local spending that can be counted under the program, such as Texas payroll, vendor costs and production services.
Television was the strongest driver of economic impact, accounting for more than 70% of total GVA and labor income generated by the incentive. Television productions contributed $876.3 million in GVA and $517.7 million in labor income. Feature films followed with $113.1 million in GVA and $66.8 million in labor income.
Commercials represented the largest number of supported projects, but television carried the greatest economic weight. The program also supports video games, AR, VR and XR projects. AR means augmented reality, VR means virtual reality, and XR refers to extended reality, a broader category for immersive digital formats.
Production Spending Reaches Far Beyond the Set
One of the clearest takeaways is that production spending does not stay inside the screen sector. A film or television project also spends money on construction, transport, hotels, catering, real estate, legal services, digital services, utilities and many other local suppliers.
An analysis of a mid-sized incentivized television series filmed in Texas found that 42.3% of below-the-line spending stayed within screen-specific activity, while 57.7% went into non-screen sectors. Below-the-line, or BTL, refers to crew, technical and operational production costs, rather than key talent, writers, directors or principal cast.
Construction alone accounted for 13.1% of total BTL spending, followed by local labor, location and real estate, travel and transport, and digital services. This is where the value becomes concrete: productions rent places, hire vehicles, buy materials, pay local suppliers and create temporary but meaningful demand in multiple communities.
The geographic impact is also wider than a single filming location. One North Texas production worked with vendors across the state, from Dallas and Fort Worth to El Paso, showing how a single project can activate a broader Texas value chain.
SB22 Makes Texas More Competitive
Texas has long had strong locations, experienced crews, a growing studio base and a large creative economy, but its incentive was often less competitive than programs in nearby states such as New Mexico, Louisiana and Georgia.
That changed with Senate Bill 22, or SB22, the 2025 legislation that significantly expanded TMIIIP. From September 2025, the program receives $300 million every two years, with a 10-year commitment totaling $1.5 billion. The top base incentive rate for film, television and digital interactive projects rises to 25%, with projects able to reach up to 31% through stackable uplifts. Uplifts are additional percentage increases available when a project meets specific criteria, such as Texas heritage, rural county activity, veteran crew hires, workforce development or in-state post-production.
The new structure is not fully reflected in the economic figures yet, because it came after the main period analyzed. Even so, it marks a major shift in Texas’ ability to compete for larger, mobile productions.
The Next Challenge: Capacity
A larger incentive can bring more projects, but the long-term opportunity depends on whether Texas can grow the ecosystem around it. Workforce capacity will be one of the key issues, especially if higher production volume creates shortages in technical roles and department leadership positions.
The state also has an opportunity to retain more value by strengthening post-production, expanding training pathways and making the incentive easier for producers to understand and use.
For international producers, studios and investors, the message is clear: Texas is becoming a more serious production destination in the U.S. market. Its incentive is no longer only a way to bring productions in. It is becoming part of a wider screen economy strategy, connecting production, workforce development, technology, regional vendors and long-term local value.
