U.S. Rep. Tony Gonzales has filed legislation to support domestic filmmaking, days after President Donald Trump threatened to impose a 100% tariff on foreign-made films.
Texas, the representative’s home state, is also in the process of working to pass a law that would incentivize productions to film their projects in the state rather than usual film hubs, like Atlanta or Los Angeles.
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Gonzales has dubbed his proposed legislation “Texas is the New Hollywood Act.” He briefly mentioned the proposed legislation in an appearance on CNN’s NewsNight.
A news release from Gonzales on Tuesday afternoon said the bill would create more filmmaking opportunities “here at home and allow Texas to build on its momentum to be at the forefront of the American film industry.”
“This legislation is key to creating new jobs in our communities. It also goes hand-in-hand with efforts underway in the Lone Star State to give film and TV production a Texas-sized boom,” Gonzales said.
The proposed legislation comes days after President Donald Trump, in a post on this Truth Social platform, espoused placing a tariff on foreign films coming into the United States that are not produced stateside, according to the Associated Press.
Trump said the movie industry in America is “dying a very fast death.” He went on to describe “concerted efforts by other Nations” to offer incentives to productions as a “national security threat,” the AP reported last Monday.
Those comments drew the ire of Robert De Niro, who, during an acceptance speech for his honorary Palme d’Or at the 78th Cannes Film Festival, critiqued the president’s call.
“Art is the crucible that brings people together ... art embraces diversity,” De Niro said in part.
What is in the bill?
The legislation focuses on reauthorizing bonus depreciation, an expiring federal tax incentive allowing businesses to immediately deduct a large portion of new investments, including for qualified film and television productions, according to Gonzales’ release.
- The bonus depreciation is extended to film and TV productions through Jan. 1, 2037. Producers would be able to write off costs upfront for projects beginning between 2027 and 2032.
- Current law sets bonus depreciation to expire after 2026.
- The Act requires production to spend at least $100,000 in one state for commercials, education content or digital media projects, and $500,000 for all other film and television productions.
The bill would not appropriate any federal funds. The deduction was “significantly expanded” under President Trump’s Tax Cuts and Jobs Act, according to the release.
Gonzales said the threshold matches what Texas lawmakers are currently doing with Senate Bill 22.
A Texas-sized investment
In a 23-8 bipartisan vote, the Texas Senate approved the bill and sent it to the House for consideration. The bill would invest $500 million every two years through the Texas Moving Image Industry Incentive Fund and boost in-state film and television production.
During the 89th Texas Legislature, the issue has drawn significant interest from media figures outside of Austin, namely Matthew McConaughey and Woody Harrelson. The pair appeared in an advertising campaign by Media for Texas, a nonprofit advocating for the legislature’s support of the film industry in the state, with other Texas actors urging lawmakers to support the proposed legislation.
Of course, as lawmakers discuss the specifics of the legislation, investment booms for production infrastructure, such as studio lots, come into question.
One location that had garnered significant interest when announced was Hill Country Studios, which planned to break ground outside San Marcos in 2022.
However, KSAT visited the site in February and found a forest still occupying the land where the 820,000-square-foot movie studio was to be located. The site was slated to open in August 2025, according to San Marcos City Council documents.
A spokesperson for Hill Country Studios told KSAT that a utility issue beyond their control had impacted the project’s construction schedule. An updated timeline was not provided.
SB 22 is currently working its way through the Texas House. This year’s legislative session ends on June 2.
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