PRODUCTION INCENTIVES

Texas

Type of Incentive:	Grant

Maximum Benefit:	5% to 15% of qualifying local spend or 8% to 25% of wages paid to Texas residents; if ≥ 25% of filming days are in "underutilized areas," the grant is increased by 2.5% for the local spend option or 4.25% if the wage option is selected; the incentive is tiered based on local spend (5% incentive for reality and talk shows; 70% resident cast requirement is N/A)

Compensation and Project Caps/ Funding Per Year:	No compensation in excess of $1,000,000 is excluded; no caps; approximately $14,000,000 remaining in the fiscal year ending August 31, 2010

Project Criteria:	Minimum local spend = $250,000 for film or television program, or $100,000 for a commercial, series of commercials, educational and instructional videos and digital interactive media productions; ≥ 70% of cast and crew must be residents (unless it is determined that there are not sufficient residents to fill the positions); ≥ 60% of the moving image must be filmed locally

Sunset/Review:	None

Application Considerations:	Submit initial application no earlier than 30 days and no later than 5:00 pm (Central) on the business day prior to the first day of production (response ≤ 60 days); submit an email to the Texas Film Commission confirming the production began on time within 5 days after the start of production as listed on the application.

Loan-Out Company Considerations:	Currently none to note

Crew Base Considerations:	Crew directory available; crew bases mostly in Dallas and Austin; Texas is a right-to-work state

Film Commission:	Texas Film Commission Office of the Governor P.O. Box 13246 Austin, TX 78711 Bob Hudgins Director Phone: 512.463.9200 Fax: 512.463.4114

Additional Exemptions

Hotel Occupancy Tax Relief Available

Sales & Use Tax Relief for Productions Available For details, refer to the Texas Film Commission.

Qualified Production Expenditures

In-State Vendors:	YES
Out-of-State Vendors:	NO

Fringes Paid for Qualified Payroll:	YES

Taxes Paid for Qualified Payroll:	YES

* Please read the Qualified Production Expenditures Introduction & Assumptions.

Qualified Compensation Expenditures

Above-the-Line:	Residents:	YES
Above-the-Line:	Non-Residents:	NO

Below-the-Line:	Residents:	YES
Below-the-Line:	Non-Residents:	NO

* Please read the Qualified Compensation Expenditures Introduction & Assumptions.

Nontraditional Programming

Talk Shows:	YES (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)	News:	NO (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)

Reality Shows:	YES (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)	Webisodes:	YES

Game Shows:	NO (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)	Animation:	YES

Documentaries:	YES (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)	Commercials:	YES (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)

Industrials:	YES (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)	Music Videos:	YES (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)

Sporting Events:	NO (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)	Interactive Media/ Video Games:	YES (explicit allowance/disallowance in law, regulations, guidelines, rules, etc.)

* Please read the Qualified Nontraditional Programming Introduction & Assumptions.

Updated June 11, 2010
For more specific information, please contact the EP Production Incentives Group.

NOTE: These materials have been prepared by Entertainment Partners for informational purposes only and should not be construed as tax advice or relied on for specific projects. Though every effort has been made to remain current, laws and incentives change and, therefore, this information may have been revised. Please contact the EP Production Incentives Group or your legal or tax advisors to confirm any laws or the effect of incentives on your project.