The Complete Guide to Texas Film & TV Incentives (TMIIIP)

Texas is more than just a trending backdrop, it’s now a $1.5 billion financial partner for your production. Through the Texas Moving Image Industry Incentive Program (TMIIIP), film, TV, animation, commercial, and video game projects can receive cash rebates of up to 31% on qualified in-state spending. And it's no small change.  This guide breaks down everything you need to know to qualify, apply, and maximize your rebate.

What Is TMIIIP?

Effective September 1, 2025, the Texas Moving Image Industry Incentive Program (TMIIIP) is not a tax credit,  it’s a cash grant/rebate. Productions earn back a direct percentage of their Texas-based expenditures including wages, vendor invoices, and even petty cash. Texas has committed $1.5 billion over the next ten years to the program.

It complements other state perks like sales and lodging tax exemptions, allowing productions to stack benefits and stretch budgets further.

Who Qualifies?

TMIIIP is open to a wide range of projects:

• Film & Television – Features, episodics, documentaries, limited series
• Commercials – Music videos, branded content, educational/instructional media
• Animation & VFX – With project-specific crew rules
• Video Games & XR projects
• Reality Television – Eligible under commercial-style tiers

How Much Can You Get Back?

Base Rebate Tiers

• Film & TV:
  
  • 5% for $250K – $999K spend
  • 10% for $1M – $1.49M spend
  • 25% for $1.5M+ spend
• Commercials:
  
  • 5% for $100K – $999K spend
  • 10% for $1M+ spend

Additional Grant Awards (Bonuses)

On top of the base rebate, productions may qualify for +1% to +2.5% uplifts by meeting specific criteria:

• Underutilized & Distressed Areas – 25% of production days in low-income or low-usage areas (+2.5%)
• Rural Filming – ≥35% of filming days in counties with population ≤300K (+2.5%)
• Veteran Hiring – ≥5% of cast/crew are Texas resident veterans (+2.5%)
• Postproduction in Texas – ≥25% of spend on Texas post facilities/vendors (+1%)
• Texas Historic Sites – Filming at recognized sites (+2.5%)
• Texas Heritage Project – Positive portrayal under state rules (+2.5%)
• Faith-Based Projects – Recognized designation (+2.5%)
• Workforce Development – Partnering with a Texas higher-ed institution for training (+2.5%)

⚠️ Important: Bonuses must be selected at application time, and the total (base + bonuses) is capped at 31%.

Eligibility Requirements

To qualify, productions must meet strict thresholds:

• Texas Residency: At least 35% of cast & crew must be Texas residents. (For animation/VFX: 35% of combined cast + crew)
• In-State Production: At least 60% of the total project must be completed in Texas.
• Labor Caps: Only the first $1M of each Texas resident’s wages is eligible.
• Spend Thresholds: $250K minimum (film/TV), $100K minimum (commercials).
• Application Timing: This is critical.  You must apply before production begins. Final grant is issued after state review of actual spend.

How the Incentive Works

1. Apply before production starts.
2. Produce in Texas while tracking all eligible expenses.
3. Submit documentation (invoices, payroll, petty cash, residency forms).
4. State reviews expenditures and approves rebate.
5. Receive cash payment — not a credit against taxes owed

Example of Savings

• Film Production – A $2M spend in Texas:
  
  • Base rebate (25%) = $500K
  • Add rural + veteran bonuses = +5% ($100K)
  • Total rebate: $600K back
    
    
• Commercial Production – $1.2M spend in Texas:
  
  • Base rebate (10%) = $120K
  • Add 2.5% bonus = +$30K
  • Total rebate: $150K back

How TaxTaker Helps

Navigating TMIIIP is complex — and mistakes can cost millions. TaxTaker partners with productions to:

• Assess eligibility before the filming starts
• Structure budgets and accounting hires to unlock bonuses
• File applications and manage compliance
• Handle documentation and audits for smooth payouts
• Model cash flow so producers know when rebates will hit

Final Take

The Texas Moving Image Industry Incentive Program is one of the strongest tools to reduce production costs, but only if planned for early. With up to 31% cash back, TMIIIP can be the difference between breaking even and breaking records.  But don’t sleep on it.  These funds could go quickly as the program tranches $300m every two years, meaning, it's important to plan, pursue, and produce sooner than later!

👉 Ready to maximize your Texas incentive? Book a Consultation with TaxTaker.