Austin and Texas Production Incentives 101
A big THANK YOU to website owner and operator, Texas film industry activist and general all around beacon of knowledge, Angela Lee, for sharing her insight into the always evolving Texas and Austin Production Incentives programs. Angela’s 101 walk-through presents a succinct look at what the programs have to offer and just might help save you some money on your next Texas filmmaking endeavour.
- Chris Weidner, Short Film Texas
TEXAS & AUSTIN PRODUCTION INCENTIVES - 101
I’m going to walk you guys through the Texas and Austin Production Incentives and how they can work for you on your production. Following that is #5, a link to join TxMPA.
Should there be any discrepancies between what appears below and what appears on the Film Commissions’ websites, always refer to the Film Commissions’ websites.
1. TEXAS PRODUCTION INCENTIVES
The Texas Production Incentives are explained on the Texas Film Commission’s website: http://www.governor.state.tx.us/divisions/film/incentives . You’ll see Texas offers a state production incentive of 5% (and 6.25%. It’s 6.25% outside a 30-mile radius of the Travis County Courthouse in Austin and the Dallas County Courthouse).
In addition to the 5% (or 6.25%) incentive you get back at the end of production there is also the 8.25% sales tax waiver on all items rented or purchased for the production.
Texas offers a 6% State Occupancy (Hotel) Tax refund that kicks in after 30 days hotel stay and retroactive to day 1 if you meet the conditions specified. Read them first.
Texas also refunds the Fuel Tax for your generator and other off-road equipment.
2. AUSTIN FILM INCENTIVES
Austin Film Commission (Gary Bond, Director) has created an additional incentive whereby participating Austin businesses offer a 10% or other discount to production cast and crew lensing in Austin. Information and details on how to obtain is here: Austin Film Commission
3. RECAP
In all, including Austin perks but excluding tax savings on fuel for generator,etc you have:
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5% Texas Film Incentive (or rebate) on productions budgeted at $1 M and above
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8.25% Sales tax waived on all things purchased/rented for any production, no minimum required.
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6% Hotel tax reimbursement on stays of 30 consecutive days or more.
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10% Austin Discount at participating businesses. (Any business can qualify. 2 caterers listed)
Do the math. It’s more complicated than a flat 20% across the board, but it’s worth considering.
4. WHAT THIS MEANS FOR YOUR PRODUCTION TEAM
Local and Visiting production companies can participate in any of the incentives if they meet the demands for each as follows:
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Have a Production budget of $1 M or more and meet other requirements specified - The 5% State Incentives currently kicks in on projects $1 million and above. (6.25% for productions 30 miles outside of Austin and Dallas).
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Book a hotel for 30 consecutive days or more - The 6% Hotel tax reimbursement requires 30-day, consecutive stay.
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Present the Sales Tax Waiver certificate to the cashier - The 8.25% sales tax waived simply requires you download, print and fill out the certificate to present to the cashier. The form can be downloaded from the Texas Film Commission Webpage for Incentives. (http://www.governor.state.tx.us/divisions/film/incentives )
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For Austin productions talk to Mr. Bond - The 10% Austin Discount cards are available through the Austin Film Commission for participating businesses listed at Austin Film Commission .
5. TxMPA
It’s my opinion that the lobbyists hired by TxMPA and IATSE will most likely encourage the Texas State Legislature 2009 to raise the Incentives from 5% to 15%. Funds are needed to hire the lobbyists. One way you can help is to JOIN and/or DONATE to TxMPA. Texas Motion Picture Alliance (TxMPA)
Your contribution is an investment in the industry and in your career!
Angela Lee
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