Introduction
Lights, camera, tax credits! In 2025, Texas is offering generous incentives to filmmakers, gaming studios, and animation houses that produce content in-state. The goal? Keep creative industries in Texas while rewarding job creation and local spending.
If you’re running a game dev studio, VFX company, or indie film project, these credits could significantly reduce your costs—and your franchise tax liability.
Texas Statutory References
- Texas Gov’t Code §485.024 – Media Production Development Zones
- Texas Administrative Code §121.20 – Grant eligibility and qualifying spend
- Texas Tax Code §171.654 – Application to Franchise Tax
Key Programs in 2025
- Texas Moving Image Industry Incentive Program (TMIIIP)
- Administered by the Texas Film Commission
- Grants up to 22.5% of eligible in-state spending
- Applies to:
- Film
- TV series
- Animation
- Video games
- Media Production Development Zone (MPDZ)
- Local zones that offer additional state sales tax exemptions
- Must spend at least $250,000 in a designated zone
- Franchise Tax Offset via Credit Certificate
- Convert grants into offsetting franchise tax credit if eligible
Example: Game Studio in Austin
Example: LunarBox Studios produces a $1.5M sci-fi game in Austin:
- $1.2M of spend qualifies for TMIIIP (payroll, tech, equipment)
- They receive $270,000 in grant funds
- They also qualify for sales tax exemption on software tools
- Their remaining franchise tax is offset by applying eligible credit
Step-by-Step: Claiming Texas Film/Game Incentives (2025)
- Register with the Texas Film Commission
Submit an application before production begins. - Track Qualifying In-State Expenditures
This includes cast/crew wages, equipment rental, post-production, etc. - Submit Final Documentation
Must include vendor lists, invoices, payroll, and zone usage. - Receive Grant or Certificate
Funds are disbursed post-audit; optional credit conversion for franchise tax. - Apply Credit to Franchise Tax (if applicable)
Use Form 05-158 and reference your TMIIIP certificate.
Conclusion
Texas is competing with California and Georgia by backing its creative industries with tax-driven capital. If you’re building animation, gaming, or digital media content, you may be eligible for serious tax relief.
Just make sure you structure your project right—and document every dollar.
Call to Action
Want to reduce your production costs using Texas media tax credits?
Book a call with Anshul Goyal, CPA, EA, FCA to:
- Review your project for TMIIIP eligibility
- Maximize your qualifying spend
- Convert your grant into franchise tax savings
Lights, camera, tax strategy—start your next project right.
https://calendly.com/anshulcpa/
About Our CPA
Anshul Goyal, CPA, EA, FCA
Anshul brings 15+ years of U.S. and international tax experience. He specializes in helping online sellers, foreign founders, and U.S. residents with IRS and multi-state compliance. Known for his deep knowledge in Shopify and Amazon seller tax strategy, Anshul has helped hundreds of entrepreneurs minimize taxes and scale legally.
Disclaimer
This blog is for informational purposes only and does not constitute legal or tax advice. Please consult a qualified tax professional regarding your individual tax situation.
Top 5 High-Searched FAQs (2025)
1. What is the Texas TMIIIP program?
A grant program that offers rebates on qualified in-state media production expenses.
2. Can game studios claim the incentive?
Yes. Video game and animation production are eligible under TMIIIP.
3. How much can I get in grants or credits?
Up to 22.5% of qualified expenditures, depending on location and type of media.
4. Do I have to apply before filming/production?
Yes. You must register before principal production begins.
5. Can I apply this to franchise tax?
Yes, via a tax credit certificate after audit approval.