At times, navigating the ever-evolving film industry can be a daunting task, even for the most seasoned professionals. That is why at Southwest Film Productions, we decided to put together a quick informational summary to help filmmakers manage the newly enhanced Texas Film Incentive (TMIIIP)! The Texas Moving Image Industry Incentive Program (TMIIIP) is a state‑run grant, not a tax credit, offering cash payments up to 22.5% of a project’s eligible in‑state expenditures—including wages to Texas residents, rentals, and purchases . Front‑end administrative costs like exchange fees do not apply—if all documentation passes the audit, the state issues a check directly, rather than a credit against liability . Eligibility Thresholds & Incentive Rates Minimum Texas spend: $250,000 for film/TV and reality projects; $100,000 for commercials, animation, VFX, and video games . Base incentive rate tiers vary by budget—for example: 5% for $250K–$1M in spend 10% for $1M–$3.5M 20% or more for higher spend levels . Production location: At least 60% filmed or asset creation in Texas . Crew & cast residency: At least 55% combined paid cast and crew must be Texas residents, verified via a signed Declaration of Texas Residency Form, with valid documentation at least 120 days prior to shooting . *Combined 55% paid crew and cast for commercials, video games and reality television. Separate 55% paid crew and 55% paid cast for film/television projects. Additional Grant Awards (Bonus Clauses) Projects may qualify for one 2.5% additional grant award, chosen at application time—not retroactive—such as: Underutilized/Economically Distressed Areas Bonus: 25% of shoot days in designated areas, or filming basecamp rental qualifies if 25% threshold met . Veteran Hire Bonus: At least 5% of cast and crew are Texas resident veterans (with DD‑214 documentation plus residency proof) . Post‑Production Bonus: At least 10% of total Texas spend on postproduction labor or vendors in Texas. Application & Audit Workflow Inquiry & Application Timeline: Filmmakers submit an Incentive Inquiry Form and then a full application between 180 days and 5 business days before the start of Texas principal photography or production . Document Requirements: Applicants must submit an itemized budget of estimated Texas spending and a content document: Full script (feature/TV) or storyboards (commercials), treatment (reality series), or game outline (interactive media/video games) . Production Start Confirmation: Within 5 business days of the first day of production, producers must email the incentive team to confirm or update the start date. If delayed over 30 days, the application may be discarded and must be resubmitted . Residency Verification: All Texas residents (paid cast/crew) must complete and sign a Declaration of Texas Residency Form with valid documentation; incomplete or missing forms invalidate eligibility and cannot count toward the 55% residency threshold . Audit Submission: Within 60 days of final in‑state expenditures, producers must submit invoice/ payroll/ crew‑cast lists, formatted in spreadsheet templates provided by the program; disorganized or misformatted submissions may cause delays . Review & Payment: Once documentation clears audit and state review, the grant is issued via check—no fees or exchanges—and the audit turnaround depends on queue size, project size, and quality of organization . Key Takeaways for Applicants Strict adherence to documentation: Residency forms, budget spreadsheets, crew/cast lists, and content documents must follow the program’s templates. Timing is critical: Application window is tight, and delays can void eligibility. Residency verification is non-negotiable: Only properly documented Texas residents count toward the 55% threshold—no exceptions. Plan for long-term consistency: SB 22 funding provides stability through 2035, giving filmmakers more certainty over multi-year projects. The TMIIIP has demonstrated strong economic contributions and potential for growth in Texas' film and media sector. With bold legislative backing and expanded funding, Texas is setting the stage to compete as a powerhouse filming location, inviting local storytellers and filmmakers to bring their visions to life on Texas soil. For successful applications, we recommend starting early, following tight timelines, and maintaining clean, eligible expenditures and residency documentation. You can find all of this information and more on the Texas Film Commission website at https://gov.texas.gov/film/page/tmiiip .