H.B. No. 4568 seeks to amend the Texas moving image industry incentive program by creating the Texas moving image industry incentive fund, which will be administered by the office without the need for legislative appropriation. The bill establishes new eligibility criteria for grants, including a minimum in-state spending threshold for production companies that has been increased from $250,000 to $500,000. It also introduces a tiered system for the percentage of Texas residents in the production crew, which will gradually rise over the coming years. The bill specifies that grants cannot fund inappropriate content or projects that portray Texas negatively, and it outlines ineligible project types, such as pornography and political advertising.

Additionally, the bill grants the office the authority to designate projects as Texas heritage projects based on their promotion of family values and positive representations of Texas. It sets new qualifications for rural filming grants, requiring a minimum of 35% of filming days to occur in smaller counties, and mandates that at least 25% of in-state spending for postproduction must take place during that phase. The bill also requires the comptroller to deposit $500 million into the incentive fund every two years, funded by tax proceeds, and includes sunset provisions for certain sections to expire on August 31, 2035. The effective date for the bill is September 1, 2025.

Statutes affected:
Introduced: Government Code 485.021, Government Code 485.022, Government Code 485.023, Government Code 485.024, Government Code 485.025, Tax Code 151.801 (Government Code 485, Tax Code 151)