Texas Film Incentive (TMIIIP) vs Other State Film Incentives: How Texas Stacks Up

Explore how the expanded TMIIIP stacks up against leading state film incentives in Georgia, New Mexico, Louisiana, and California. Cash vs credits, explained.

By

Ari Salafia

•

10

min read

When producers decide where to shoot, incentives are often one of the biggest drivers of location choice. In 2025, Texas has entered that conversation in a much more serious way with the expanded Texas Moving Image Industry Incentive Program (TMIIIP).

But Texas is not competing in a vacuum. States like Georgia, New Mexico, Louisiana, and California remain major players, each with different structures, benefits, and tradeoffs.

This guide compares TMIIIP to other top state programs so producers can better understand where Texas fits and when it makes sense.

State	Incentive Type	Typical Range	Refundable / Transferable	Annual Funding Cap	Notable Tradeoffs
Texas	Cash grant (rebate)	5%–25% base, up to ~31% with bonuses	Cash grant	~$300M every 2 years	Content rules, residency thresholds
Georgia	Income tax credit	20% base + 10% uplift (30%)	Transferable	No statewide cap	Requires credit sale or tax liability
New Mexico	Tax credit	25%–40%	Refundable	~$160M per year (phased)	Payout queue and timing
Louisiana	Tax credit	~25%–40%	Discounted state buyback	Annual cap	Payout queue and timing
California	Tax credit	~35%–40%	Refundable or nontransferable	$750M per year	Competitive application process

Texas TMIIIP: What Changed and Why It Matters

TMIIIP is structured as a cash grant, not a tax credit. After production wraps and the state reviews actual Texas spending, approved projects receive a direct cash payment.

Key features of TMIIIP

Base grant tiers for film and television:
- 5% on $250K–$999K of Texas spend
- 10% on $1M–$1.49M
- 25% on $1.5M and above
Bonus uplifts of 1%–2.5% for qualifying factors like:
- Rural or underutilized filming locations
- Hiring Texas veterans
- Certain post-production and workforce initiatives
- Filming historic sites
- Filming faith-based projects
Total effective support can reach roughly 31% of qualified Texas spend

Eligibility basics

At least 35% of cast and crew must be Texas residents
At least 60% of production must take place in Texas
Only the first $1M of wages per Texas resident counts as qualified labor

Funding stability

Texas committed $1.5 billion over roughly ten years, funding the program in $300M increments every two years. That level of funding puts Texas closer to the top tier of film incentive states than it has ever been before.

Why producers care:
TMIIIP’s cash grant structure is especially attractive for projects that do not want to sell tax credits or rely on state tax liability. The value of the incentive is insulated from discounts, and external factors such as supply and demand.

Georgia: The Industry Benchmark

Georgia’s incentive is often treated as the gold standard.

20% base credit on qualified in-state spend
10% uplift for using approved Georgia branding
Credits are fully transferable
No statewide cap and no sunset date

Why Georgia still wins:
The simplicity of modeling a flat 30% incentive and the depth of Georgia’s crew and infrastructure keep it highly competitive.

Tradeoff:
Credits must be sold or used against Georgia tax liability, which affects net value and timing. The success of the program creates downward pressure on the transfer price, and there is no price floor.

New Mexico: High Percentages With a Queue

New Mexico offers one of the most generous refundable structures.

25% base refundable credit
Uplifts that can reach 40%
Refundable, meaning cash comes back directly
Subject to an annual payout cap that is increasing toward $160M

Why producers choose New Mexico:
Refundability and high headline percentages.

Tradeoff:
Payments are subject to a queue, so timing matters.

Louisiana: Flexible but with a queue

Louisiana’s long-running program offers:

Base credit around 25%
Potential increases up to 40%
Credits can be sold back to the state at a discount

Why Louisiana works:
Flexibility and established production ecosystems with a known discount value should the production not have state tax liability.

Tradeoff:
Productions may have to wait on issuance or redemption of tax credits due to annual caps.

California: Big Incentives, Limited Slots

California’s Film and Television Tax Credit Program 4.0 provides:

Credits in the 35%–40% range for qualifying productions
$750M per year in total allocations through 2030
Refundable election available for some productions

Why producers stay in California:
Access to top talent, stages, and infrastructure.

Tradeoff:
The program is competitive. Not every applicant gets in.

So Where Does Texas Actually Win?

Texas may not always have the highest headline percentage, but it stands out when:

Cash rebates are preferred over tax credits
Projects exceed $1.5M in Texas spend
Producers want predictable funding backed by long-term legislation
Location flexibility across urban and rural settings matters
Simpler monetization is worth more than a slightly higher percentage

In short, Texas trades a bit of headline percentage for cash certainty and scale.

Final Thoughts

For producers comparing incentives in 2025, Texas is no longer a secondary option. TMIIIP puts the state firmly in the mix with Georgia, New Mexico, Louisiana, and California.

The right choice depends on more than just the percentage. Structure, timing, funding caps, content rules, and how easily incentives turn into cash all matter.

Running side-by-side models early in development is the best way to determine which state delivers the strongest real-world value for your project.

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