Texas Film Incentives:
A Producer's Guide
For years, Texas was a location. Today, it's a production hub.
With the passage of Senate Bill 22 in June 2025, the Lone Star state committed $1.5 billion over ten years to media production, all backed by dedicated funds through 2035. For productions weighing incentive stability against creative needs, that kind of long-term commitment changes the calculus.
The Texas Moving Image Industry Incentive Program (TMIIIP) has become one of the most competitive and straightforward funding mechanisms in the country. The state’s infrastructure, from stages to post, has caught up to match.
Texas operates on a cash grant system, which is a critical distinction that makes Texas’ incentives enticing.
Unlike Georgia or Louisiana, where productions receive tax credits that must be sold (often at a loss). Texas streamlines the money and issues a direct cash payment upon completion of the audit process.
Commercials reach the top tier at $1M+ spend.
Productions can add up to 6 percentage points to the base rate:
Maximum combined rate: 31%
The cash grant structure eliminates broker fees and credit-sale discounts. Productions hit their spend threshold, pass audit, and receive payment directly.
SB22 introduced a graduated residency schedule:
The current 35% threshold is achievable. The North Texas crew base has expanded significantly with productions like Yellowstone, 1883, Landman, the growing presence of SGS Studios along with XR stages like Trilogy Studios, and Fort Worth's Film Collaborative program.
TMIIIP supports a broad range of media:
- Feature Films & Television
- National & Regional Commercials
- Animation & Visual Effects
- Video Games & Digital Interactive Media
- Documentary & Educational Content
Many productions shoot in Texas to capture the look, then ship drives back to LA or New York for post. That approach adds complexity and leaves incentive value on the table.
Editorial, dailies, color, finishing, and sound all qualify as in-state spend.
For projects near the $1.5M threshold, routing post through a Texas facility can mean the difference between a 10% grant and a 25% grant on the entire project - not just the post budget.
Allocating at least 25% of Texas spend to post unlocks an additional 1% grant. On a $5M project, that's $50,000. Sawtooth helps productions structure their post budgets to meet that threshold cleanly.
Beyond the incentive math, keeping post local creates real efficiencies:
- Tighter dailies turnaround. Production to camera feedback. Fast.
- Secure chain of custody. No shipping drives across the country. No testy uploads.
- Editorial as a department, not a vendor. Secure, collaborative facility, and infrastructure.
Fort Worth has become one of Texas's most production-ready environments.
SGS Studios - the Taylor Sheridan / Paramount / Hillwood partnership - has established North Texas as a major production hub. Sawtooth Post operates out of Trilogy Studios, minutes from SGS, purpose-built to support productions shooting in the region.
One cool detail: many "rural" uplift-qualifying counties are a short drive from Fort Worth, so productions can capture the +2.5% rural bonus while still accessing post facilities and city convenience the same day.
Submit applications to the Texas Film Commission no earlier than 180 days and no later than 5 business days before principal photography.
Only spend with Texas-based vendors qualifies. Working with established local partners, within the TMIIIP framework, ensures invoices pass audit without surprises.
Because this is a cash grant, the Texas Film Commission reviews every eligible expenditure before cutting the check. How well your documentation is organized directly affects how long that process takes. Sawtooth structures project handoffs with the audit in mind.
At least 60% of production must be completed in Texas.
Work outsourced to out-of-state vendors counts against this threshold.
Sawtooth Post is Fort Worth's dailies-to-delivery post-production partner. We offer TPN-compliant workflows, offline/online editorial, color and finishing, and the kind of organized, audit-ready documentation that makes your line producer's life easier when it's time to submit.
If you're planning a Texas production and want to maximize your incentive return while keeping your post workflow efficient, we'd welcome the conversation.
For official rules, forms, and current fund availability, consult the Texas Film Commission.