1. (a) Background.

   1. (1) The Texas Moving Image Industry Incentive Program offers grants based upon eligible expenditures within the state.

      1. (A) Feature Films, Television Programs and Visual Effects Projects for Feature Films and Television Programs that choose the Texas Spend Option are eligible to receive grants of up to 15% of total eligible in-state spending.
      2. (B) Feature Films, Television Programs and Visual Effects Projects for Feature Films and Television Programs that choose the Texas Wage Option are eligible to receive grants of up to 25% of eligible wages paid to Texas residents.
      3. (C) Digital Interactive Media Productions (Video Games), Commercials, Educational or Instructional Videos, Reality Television Projects and Visual Effects Projects for Commercials and Educational or Instructional Videos are eligible to receive grants equal to 5% of total eligible in-state spending.
   2. (2) Grants are available upon project completion. Both live-action and animated projects are eligible. These grants are in addition to the state's existing Sales Tax Exemptions.
   3. (3) The State of Texas has allocated $30,000,000 for fiscal year 2010 (September 1, 2009 to August 31, 2010) and $30,000,000 for fiscal year 2011 (September 1, 2010 to August 31, 2011) for the Incentive Program. Applicants will not be able to receive funding until after September 1, 2009.

2. (b) Purpose.

   1. (1) The Texas Moving Image Industry Incentive Program was implemented to increase employment opportunities for Texas industry professionals, as well as boost economic activity in Texas cities and the overall Texas economy. Rather than Texas being an exporter of talent, Texas can now attract a wide range of projects from traditional film and commercial productions to the technology driven animation, visual effects and video game productions.
   2. (2) This program allows for growth of the indigenous segments of production. It is an important goal of this program to have Texas' talented workforce stay in Texas and realize real professional growth in the industry. The incentive program increases the value of the Texas workforce and the viability of the small businesses that rely on production activity, increasing Texas' capacity to take on more production activity and increasing Texas competitive edge.
   3. (3) This program is not intended for on-going events or productions that are permanently located in the State of Texas. This includes, but is not limited to, news productions, sports productions and religious service productions.

Source Note:The provisions of this §121.1 adopted to be effective March 10, 2008, 33 TexReg 2019; amended to be effective November 22, 2009, 34 TexReg 8029.