Texas House Bill HB3472

Texas 2023 - 88th Regular

• Filed: 3/3/23

Caption

Relating to the establishment of the Texas Media Production Enticement Program; providing tax credits; authorizing fees.

Impact

The bill's introduction is intended to boost the Texas economy by creating jobs in the media and entertainment sector. By mandating a certain percentage of local hiring and spending, the legislation seeks to ensure that the economic benefits of film production extend to Texas communities. The Texas Media Production Enticement Program would directly impact local laws related to taxation and economic incentives, as it includes provisions for tax credits that would be administered by the state office overseeing media and film production.

Summary

House Bill 3472 aims to establish the Texas Media Production Enticement Program, which provides tax credits and incentives to production companies that engage in moving image projects in Texas. The legislation is designed to stimulate growth in the state's film and media production industry by encouraging companies to film locally and hire Texas residents. The bill outlines specific eligibility requirements for production companies, including minimum in-state spending thresholds and hiring quotas for Texas residents, which are expected to bolster job creation within the state.

Sentiment

The sentiment surrounding HB 3472 is generally positive, particularly among advocates of the film industry who argue that such incentives are crucial for maintaining competitiveness with other states that offer similar programs. Proponents of the bill assert that it will not only enhance Texas's reputation as a viable location for film and television production but also contribute to a diversified state economy. However, there may be some concerns regarding the efficiency of the allocated tax credits and whether they will sufficiently attract production companies compared to existing incentives in other regions.

Contention

Despite the overall support for the bill, notable points of contention could arise regarding the allocation of tax credits and the potential for misuse or inefficiency in program administration. Critics may question the long-term sustainability of relying on tax incentives to attract production companies, especially if Texas does not maintain a competitive edge in terms of other production-friendly policies. Additionally, the specific hiring requirements for Texas residents could be debated, particularly in terms of their feasibility and effectiveness in maximizing job creation within the film industry.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 171. Franchise Tax
  • Section: New Section