New Act Extends 100% Tax Write-Off for Film Productions Until 2035, Requires $500K In-State Spend

The aptly named Texas is the New Hollywood Act of 2025 is basically a giant, long-term tax incentive designed to keep film and television production dollars flowing into specific states. This bill extends a crucial tax break—known as bonus depreciation—for qualified film and TV productions, pushing the expiration date from 2027 all the way to January 1, 2035. The big takeaway is that production companies can continue to write off 100% of the cost of eligible property (like cameras, sets, and equipment) immediately, provided they meet a new, specific requirement: they must spend a minimum amount of money in a single state to qualify for the federal break.

The Golden Ticket: Minimum In-State Spending

This isn't a free pass; the bill ties the federal tax benefit directly to local economic activity. To get that sweet 100% bonus depreciation, a production must meet certain spending thresholds in just one state. For educational videos or digital media, the minimum spend is $100,000. For virtually every other type of film or TV show—think feature films, streaming series, or major commercials—that minimum spend jumps to $500,000 (SEC. 2).

If you're a grip, a caterer, or a small business that rents out equipment, this is a big deal. This requirement forces production companies to spend half a million dollars locally on things like labor, locations, and supplies, driving immediate cash flow into the state economy. The long extension until 2035 also provides years of certainty for studios and investors, making it easier for them to greenlight projects and invest in permanent infrastructure like sound stages.

What This Means for Everyone Else

While this is a clear win for the film industry and the states that successfully attract this spending, it’s worth noting the trade-offs. Tax incentives like 100% bonus depreciation are technically a "tax expenditure"—meaning it’s money the federal government would have collected otherwise. For taxpayers generally, this represents a reduction in federal revenue. Essentially, the public is subsidizing the cost of capital for these productions to encourage them to spend locally.

Furthermore, this bill highlights the ongoing debate about tax fairness. Film and TV companies get this massive, guaranteed 100% write-off for over a decade, while many other industries—from manufacturing to small retail—have to navigate less generous or more complex depreciation schedules. This creates a powerful incentive for capital to flow into the film sector over others. It also means that states with strong local incentives are likely to see a spike in activity as studios stack the federal 100% write-off on top of state-level tax credits, making them even more attractive film destinations.