1. (a) Background.

   1. (1) The Texas Moving Image Industry Incentive Program offers grants based upon eligible expenditures within the state by the Applicant. Subject to this subchapter and Chapter 485 of the Texas Government Code:

      1. (A) 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 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 are eligible to receive grants of up to 15% of eligible in-state spending paid to Texas Residents; and
      4. (D) Commercials, Educational or Instructional Videos and Reality Television Projects are eligible to receive grants equal to 5% of total eligible in-state spending.
   2. (2) Grants are available upon submission of all required documentation by the Applicant to the Texas Film Commission (including submission of the CPA Audit Opinion to the State of Texas, if required by this chapter), initial verification by the Texas Film Commission Incentive staff and a compliance audit by the Office of the Governor's Compliance and Oversight Division. These grants are in addition to the Sales Tax Exemptions described in Texas Tax Code §151.318 and §151.3185 and the Texas Comptroller of Public Accounts Administrative Rule, 34 TAC §3.300.
   3. (3) The State of Texas has allocated $15,000,000 for fiscal year 2012 (September 1, 2011 to August 31, 2012) and $15,000,000 for fiscal year 2013 (September 1, 2012 to August 31, 2013) for the Texas Moving Image Industry Incentive Program. Applicants will not be eligible to receive funding until after September 1, 2011. This chapter shall apply to grants under the Texas Moving Image Industry Incentive Program from funds allocated to the program by the State of Texas for fiscal year 2012 (September 1, 2011 to August 31, 2012) and fiscal year 2013 (September 1, 2012 to August 31, 2013).
   4. (4) Amounts expended in each segment of the Texas Moving Image Industry Incentive Program, which segments include Television Programs (including solely for this purpose Reality Television Projects), Feature Films, Digital Interactive Media Productions, and Commercials, Educational and Instructional Videos, shall not exceed 40 percent of funds allocated to the program by the State of Texas for combined fiscal years 2012 (September 1, 2011 to August 31, 2012) and 2013 (September 1, 2012 to August 31, 2013).

2. (b) Purpose.

   1. (1) The Texas Moving Image Industry Incentive Program was implemented to increase employment opportunities for Texas industry professionals, tourism and to 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 productions and Digital Interactive Media Productions.
   2. (2) The Texas Moving Image Industry Incentive 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 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) The Texas Moving Image Industry Incentive Program is not intended for productions that are permanently located in the State of Texas including, but 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; amended to be effective August 28, 2011, 36 TexReg 5201.