Texas Moving Image Industry Incentive Program (Video Game Projects)

Texas Moving Image Industry Incentive Program (Video Game Projects) is sponsored by Office of the Texas Governor, Texas Film Commission. This program offers cash grants to qualifying video game projects that conduct a significant portion of their production in Texas, aiming to incentivize economic development within the state's moving image industry.

13 TAC §§121. 1 - 121. 10, 121.

14 The Office of the Governor ("OOG") proposes amendments to 13 TAC §121. 1, concerning Background and Purpose, §121. 2, concerning Definitions, §121.

3, concerning Eligible Projects, §121. 4, concerning Ineligible Projects, §121. 5, concerning Eligible and Ineligible In-State Spending, §121.

6, concerning Grant Awards, §121. 7, concerning Additional Grant Awards, §121. 8, concerning Grant Application, §121.

9, concerning Processing and Review of Applications, §121. 10, concerning Disqualification of an Application, and §121. 14, concerning Revocation and Recapture of Incentives.

The OOG also proposes the repeal of §121. 13, concerning Texas Heritage Project, elsewhere in this issue. The proposed amendments will make changes to better carry out the purpose of the program, respond to the evolving landscape of the industry in Texas, and improve readability and clarity.

The Texas Moving Image Industry Incentive Program ("TMIIIP") was implemented to increase employment opportunities for Texas industry professionals, encourage tourism to the state, and boost economic activity in Texas cities and the overall Texas economy.

The 89th Legislature passed Senate Bill 22, which created the Texas Moving Image Industry Incentive Fund appropriating the Texas Moving Image Industry Incentive Program $300M each biennium until 2035.

The new legislation also changed the residency threshold requirement for crew, actors, and extras from this state from 55% to 35% for the period of September 1, 2025, through August 31, 2027, to be increased by 5% each subsequent biennium until reaching 50% beginning on September 1, 2031. In addition, content requirements and additional grant awards were created for projects accepted into the program. The proposed amendments to §121.

3 align the rule with section 485. 023, Texas Government Code, as modified by the 89th Legislature. This rulemaking incorporates most of the changes made by Senate Bill 22, clarifies existing language, and makes other non-substantive updates for style and grammar.

The proposed amendments to §121. 1 make non-substantive updates to style and grammar. The proposed amendments to §121.

2 add definitions related to changes made by Senate Bill 22, and modifies other definitions to better align them with the purpose of the program and to account for changes in the industry. The amendments also update outdated language and make non-substantive updates to style and grammar. The proposed amendments to §121.

3 clarify language related to activities that are eligible for TMIIIP grants and require applicants to follow all requirements and best practices set forth in the Texas Film Commission Program Guidelines. The amendments further update outdated language and make non-substantive updates to style and grammar. The proposed amendments to §121.

4 make clarifying changes, align language with the OOG's current procedures, and insert non-substantive updates to style and grammar. The proposed amendments to §121. 5 clarify the lists of eligible and ineligible in-state expenditures under the program.

The proposed amendments also make non-substantive updates to style and grammar. The proposed amendments to §121. 6 revise the potential grant amounts and corresponding budget tiers for all eligible projects in accordance with changes made by Senate Bill 22.

The proposed amendments also make non-substantive updates to style and grammar. The proposed amendments to §121. 7 add new grant categories to the existing options for Applicants to receive one or more additional grants, to the extent the total grant amounts do not exceed 31% of the total in-state spending.

The additional options relate to: (1) the Rural Filming Grant; (2) the Texas Historic Site Grant; and (3) the Workforce Development Grant. Consistent with section 485. 025 of the Texas Government Code, as amended by Senate Bill 22, the rules establish that an Applicant may qualify for multiple options, but may not receive additional grants in amounts that exceed 31% of the total in-state expenditures for the project.

Senate Bill 22 also created the Texas Heritage Grant and Faith-Based Moving Image Project Grant; those additional incentives will be addressed in a future rulemaking by the OOG. The proposed amendments also make non-substantive updates to style and grammar. The proposed amendments to §121.

8 make non-substantive updates to style and grammar. The proposed amendments to §121. 9 remove unnecessary, redundant language and make other non-substantive updates to style and grammar.

The proposed amendments to §121. 10 make non-substantive updates to style and grammar. The proposed amendments to §121.

14 make non-substantive updates to style and grammar. Stephanie Whallon, Director, Texas Film Commission, has determined that during each of the first five years in which the proposed amendments are in effect, there will be expected fiscal impact on state and local governments as a result of enforcing or administering the proposed amendments.

Ms. Whallon anticipates a positive fiscal impact to the local and state economy due to increased production as a result of the proposed amendments. There is also an anticipated impact to the state's return on investment (ROI) calculation, specifically due to the lower residency requirements over the first five years. Any negative impact will decrease as the residency percentage requirements increase over time.

Ms. Whallon has also determined that during each of the first five years in which the proposed amendments are in effect, the rule changes will yield the anticipated public benefit by lowering an eligibility requirement for a TMIIIP grant in order to expand the number of qualifying projects, specifically at the small to mid-size budget range.

Ms. Whallon has determined there are no measurable anticipated economic costs to persons required to comply with the proposed amendments. There will be no adverse economic effect on small businesses, micro-businesses, or rural communities.

Since the OOG has determined that the proposed rule will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006. 002, is not required.

Ms. Whallon has determined that during each of the first five years in which the proposed amendments are in effect, the amendments: 1) will not create or eliminate a government program; 2) will require the creation of new employee positions as approved by the legislature; 3) will not require an increase or decrease in future legislative appropriations to the OOG; 4) will not require an increase or decrease in fees paid to the OOG; 5) do not create a new regulation; 6) will expand certain existing regulations; 7) will not increase or decrease the number of individuals subject to the applicability of the rules; and 8) will positively affect the Texas economy.

The OOG has determined that no private real property interests are affected by the proposed rules, and the proposed rules do not restrict, limit, or impose a burden on an owner's rights to the owner's private real property that would otherwise exist in the absence of government action. As a result, the proposed amendments do not constitute a taking or require a takings impact assessment under Government Code §2007. 043.

Written comments regarding the proposed rule amendments may be submitted for 30 days following the date of publication of this notice by mail to Stephanie Whallon, Office of the Governor, Texas Film Commission, P. O. Box 12428, Austin, Texas 78711, or by email to TFCRules.

Comments@gov.texas. gov with the subject line "TMIIIP Rule Review." The deadline for receipt of comments is 5:00 p.

m. , Central Time, on March 15, 2026. The amendments are proposed under Section 485.

022 of the Texas Government Code, which requires the Texas Film Commission to develop procedures for the administration and calculation of grant awards under TMIIIP. The amendments are also proposed in accordance with Senate Bill 22, which took effect on September 1, 2025. Chapter 485 of Texas Government Code.

No other statutes, articles, or codes are affected by the proposed amendments. The Texas Moving Image Industry Incentive Program administered by the Texas Film Commission (Commission) offers grants based upon eligible expenditures within the state by the Applicant, subject to this chapter [ Chapter ] and Chapter 485 of the Texas Government Code.

Grants are available upon submission of all required documentation by the Applicant to the Commission, initial verification by the Commission , and a compliance review by the Office of the Governor. These grants are in addition to the sales tax exemptions described in sections [ Sections ] 151. 318 and 151.

3185 of the Texas Tax Code and §3. 300 of Title 34 of the Texas Administrative Code. The Texas Moving Image Industry Incentive Program increases employment opportunities for Texas industry professionals, encourages tourism to the state, and boosts economic activity in Texas cities and the overall Texas economy.

Rather than being an exporter of talent, Texas attracts a wide range of projects from traditional film, television, and commercial productions, to technology-driven visual effects, animation, video games, and other digital interactive media productions.

The Texas Moving Image Industry Incentive Program promotes the growth of the indigenous segments of media production, thereby encouraging Texas's talented workforce to 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 media production activity, increasing Texas's capacity to take on more production activity and increasing the state's competitive edge.

The Texas Moving Image Industry Incentive Program is not intended for productions or projects that are permanently located in Texas, including, but not limited to, news productions, sports productions, and religious service productions.

The following words and terms, when used in this chapter [ Chapter ], shall have the following meanings, unless the context clearly indicates otherwise: For Commercials or Visual Effects Projects for Commercials: the Production Company, advertising agency, or client; provided, however, that if an advertising agency or client applies as the Applicant, but a Production Company expends the funds in the state in connection with a project, then either a chain of downstream payment from the Applicant to the Production Company or a production services agreement must be evidenced in connection with the submission of the Expended Budget.

For Digital Interactive Media Productions: the Production Company, game or content developer, or game publisher. Business Day--A day other than Saturday, Sunday, or a Federal or State of Texas holiday.

Cast--Actors paid by the Applicant to perform roles in Texas, including, but not limited to, featured actors, extras, stunt performers, voice-over talent, hosts, judges, announcers and roles or performers that appear on a recurring basis, but excluding talk show guests, game or contest show contestants, and litigants and witnesses in courtroom reality programs.

Commercial--A live-action or animated-production advertisement, including, but not limited to, an individual advertisement, more than one advertisement created in a contiguous production period for the same client, a music video, or an infomercial that is made for the purpose of promoting a product, service, or idea and is produced for distribution via broadcast, cable, or any digital format, including, but not limited to, cable, satellite, Internet, or mobile electronic device.

Crew--Independent contractors or employees paid by the Applicant to perform work in Texas that are directly contracted and credited for a specific position. An individual may work in more than one position on a production.

Executive producers and/or permanent salaried employees of an Applicant who are listed on call sheets or production reports but not paid Wages on the project other than producing services, shall not be counted in Crew calculations for Texas Residency purposes.

Vendors serving a traditional Crew [ crew ] function and providing personal services, but who are paid as independent contractors rather than through payroll, shall be counted in Crew calculations for Texas Residency purposes and must provide a Declaration of Texas Residency Form.

Declaration of Texas Residency Form--A document promulgated by the [ Texas Film ] Commission [ (Commission) ] to be utilized by Applicants to prove the residency status of each Texas Resident employee, contractor, Crew, or Cast member.

Digital Interactive Media Production--Software that provides a user or users with a game to play or other interactive technology experience for the purpose of entertainment or education, including for military or medical simulation training, and which is created for a game console or platform, personal computer, handheld console, or mobile electronic device used by a business or consumer [ solely for bona fide amusement purposes as outlined in Section 47.

01 of the Texas Penal Code ]. Educational or Instructional Video--An individual live-action or animated production, or a contiguous series of more than one live-action or animated production created for the same client, that is produced for exhibition in an educational or instructional setting. Episodic Television Series--A Television Program consisting of multiple episodes of a single season.

Expended Budget--The final verifying documentation and worksheets submitted by an Applicant to the Commission at the completion of a project that shows the total eligible in-state spending, as defined in section [ Section ] 485.

021(1) , [ of the ] Texas Government Code, and includes all documentation considered by the Commission to be necessary to show compliance with the requirements of the Texas Moving Image Industry Incentive Program.

Feature Film--Any live-action or animated for-profit production, including narrative and documentary productions, that is produced for distribution in theaters or via any digital format, including, but not limited to, DVD, Internet, or mobile electronic device. Filming Day--A day of Production [ as defined in paragraph (18) of this section ]. When calculating 60% of Filming Days for purposes of §121.

3 of this chapter (related to Eligible Projects) [ Chapter ], but not for purposes of calculating a percentage [ 25% ] of Filming Days for purposes of §121.

7 of this chapter (related to Additional Grant Award) [ Chapter ], a Filming Day may include a traditional day of Production in live-action or digital media, as well as a concurrent day of Production conducted by a second unit, so long as: such second unit, is not a splinter unit, but is utilized for a bona fide, production-related purpose and would be recognized by the Directors Guild of America as a second unit; and a call sheet, and production report, for such day is circulated and executed in connection with the activities of such second unit.

Any bona fide, second unit day shall be added to both the numerator of Texas days and the denominator of total days for purposes of calculating 60% of Filming Days for purposes of §121. 3 of this chapter. [ Chapter.

] Man Hours--A unit of one hour's work by one person. Physical Production--The period encompassing Pre-Production, Production, and Postproduction. Postproduction--The period that occurs after the end of Production, including but not limited to, animation, bug-fixing, codebase completion, compositing, editing, lighting, music, patch-creation, sound, testing, and visual effects.

Pre-Production--The period that occurs before the start of Production, including, but not limited to, casting actors, estimating budgets, mechanics, scouting locations, and testing story. For a live-action Feature Film, Television Program, Reality Television Project, Educational or Instructional Video, or Commercial project: the first day of principal photography.

For a Digital Interactive Media Production, Visual Effects Project or animated project: the first day of asset creation (i.e., character or environment modeling and/or rigging). For a live-action Feature Film, Television Program, Reality Television Project, Educational or Instructional Video or Commercial project: the period starting the first day of principal photography through the last day of principal photography.

For a Digital Interactive Media Production, Visual Effects Project or animated project: the period starting the first day of asset creation or commencement of layout (i.e., character or environment modeling and/or rigging) through the last day of animation, code freeze, and/or final layout.

Production Company--A company that engages in any of the activities included in Physical Production for a Feature Film, Television Program, Reality Television Project, Educational or Instructional Video, Commercial project, or Digital Interactive Media Production.

Proof of payment--Documentation that supports the disbursement and verifiably reflects the transmission, transfer, and payment of funds related to an eligible paid expenditure. Verifiable source documentation is represented by, but not limited to, a copy of a cleared/canceled check, credit card receipt, a bank statement, EFT/ACH report or any third-party verifiable check inquiry report showing the cleared check.

(21) [ (20) ] Reality Series--A Reality Television Project consisting of multiple episodes of a single season.

(22) [ (21) ] Reality Television Project--A live-action, for-profit production based upon unscripted content, including, but not limited to, a Reality Series, a contest or game show (to include individual episodes), or a talk show (to include individual episodes), that is produced for distribution via broadcast, cable, or any digital format, including, but not limited to, satellite, Internet, or mobile electronic device.

Rural Filming Area--A county with a population with a population of 300,000 or less in which a moving image project is being filmed or has Man Hours completed.

(24) [ (22) ] Television Program--An episodic , live-action or animated for-profit production that is produced in a narrative or documentary style, including, but not limited to, a television series, miniseries, limited series, television movie, television pilot, television episode, or a musical performance that is produced for distribution via broadcast, cable, or any digital format, including, but not limited to, satellite, Internet, or mobile electronic device (including a short narrative or documentary episode or series of episodes distributed initially as streamed content).

Texas Heritage Project--A Feature Film or Television Program (excluding a Reality Television Project), that promotes or documents Texas's diverse cultural, historical, natural or man-made resources, and that meets the requirements established in §121. 13 of this Chapter (relating to Texas Heritage Project).]

Texas Domiciled Entity--A person conducting business in the state of Texas that operates a physical business location at a verifiable Texas address, other than a P. O. Box, that is registered to the entity.

Texas Historic Site--A location used in the live-action filming of a Texas Moving Image Industry Incentive Program project that has received a Historic Designation by the Texas Historical Commission or is on the National Register of Historic Places as administered by the Texas Historical Commission in conjunction with the National Parks Service. Texas Institution of Higher Education--Has the meaning assigned by Section 61.

003, Texas Education Code. (28) [ (24) ] Texas Resident--An individual who is a permanent resident of Texas for at least 120 days prior to the Principal Start Date of the project and who has completed a Declaration of Texas Residency Form. (29) [ (25) ] Underutilized and Economically Distressed Area-- Has the meaning assigned to that term by Section 485.

021, Texas Government Code. Underutilized Area--An area of the state that receives less than 15% of the total moving image industry production in the state during a fiscal year, as determined by the Commission.

An area of the state wherein 15% or more of the total moving image industry production takes place during a fiscal year, as determined by the Commission, includes a thirty mile radius from city hall of that area's largest municipality.]

Economically Distressed Area--An area within the thirty mile radius described in Subparagraph (A) of this paragraph, where the median household income does not exceed 75% of the median household income as determined by the Texas Demographic Center or its successor.

] (30) [ (26) ] Visual Effects Project--A self-contained production whereby computer generated images are created or manipulated to integrate with live-action footage of a Feature Film, Television Program, Educational or Instructional Video, or Commercial. (31) [ (27) ] Wages--Compensation paid to an individual for work performed.

Payment methods include, but are not limited to, direct payments, payments through an agent or agency, payments through a loan-out company or payments through a payroll service.

Wages include, but are not limited to, gross wages, per diems (if signed for by the recipient), employer paid Social Security (Old Age, Survivors, and Disability Insurance (OASDI)) payments, employer paid Medicare (MEDI) payments, employer paid Federal Unemployment Insurance (FUI) payments, employer paid Texas State Unemployment Insurance (SUI) payments, employer paid pension, health and welfare payments, and employer paid vacation , [ and ] holiday pay , and sick leave .

Only the first $5,000,000 [ $1,000,000 ] in aggregate wages and/or compensation per person shall constitute eligible Wage expenditures.

A project may be eligible for a grant under the Texas Moving Image Industry Incentive Program if it meets the stated minimum requirements listed in subsections [ Subsections ] (b) - (h) of this section [ Section ], is appropriate in content, and represents a potential economic impact in Texas, as assessed in §121.

9(c)(3) of this chapter (related to Processing and Review of Applications) [ Chapter ], that is sufficient to justify acceptance in the program. Feature Film Applicants must expend a minimum of $250,000 in in-state spending. Feature Film Applicants must demonstrate at least 60% of a project is filmed in Texas.

The Applicant must fulfill this requirement by either: completing at least 60% of Filming Days in Texas; or if the Texas Film Commission (Commission) provides prior written approval: completing at least 60% of the total project Man Hours in Texas; or locating in Texas at least 60% of the actual locations used and paid for, not including basecamps.

Except as provided in paragraph (4) of this subsection, a Feature Film Applicant must demonstrate it has met the required residency percentage specified in Section 485. 023(2), Texas Government Code.

The required percentages of the Crew paid by the Applicant and of the Cast, including extras, paid by the Applicant must be verified Texas Residents, unless the Commission certifies in writing that a sufficient number of qualified Crew and Cast, including extras, are not available; and the Applicant has made every effort to meet the requirements and follow best practices prescribed by the Texas Film Commission Program Guidelines to obtain Crew and Cast who are Texas Residents.

For animated or documentary Feature Films, a Feature Film Applicant must demonstrate it has met the required residency percentage specified in Section 485. 023(2), Texas Government Code.

The percentage of the combined total of Crew and Cast, including extras, paid by the Applicant must be verified Texas Residents unless it the Commission certifies in writing, that qualified Crew and Cast are not available; and the Applicant has made every effort to meet the requirements and follow best practices prescribed by the Texas Film Commission Program Guidelines to obtain Crew and Cast who are Texas Residents.

Television Program Applicants must expend a minimum of $250,000 in in-state spending. 60% of the project must be filmed in Texas. This must be fulfilled by completing at least 60% of the Filming Days in Texas, or, if permitted by the Commission in its sole discretion: completing at least 60% of the total Man Hours in Texas; or locating in Texas at least 60% of the actual locations used and paid for, not including basecamps.

Except as provided in paragraph (4) of this subsection, the percentage of the Crew paid by the Applicant and percentage of the Cast, including extras, paid by the Applicant must be Texas Residents, unless it is determined and certified by the Commission in writing that a sufficient number of qualified Crew and Cast, including extras, are not available and every effort has been made by the production to meet the requirements and best practices as prescribed by the Texas Film Commission Program Guidelines.

Applicants must demonstrate they meet residency requirements as outlined in subsection (b)(3) of this section. For animated or documentary Television Programs, applicants must demonstrate they meet the residency requirements as outlined in subsection (b)(3) of this section.

The percentage combined total of Crew and Cast paid by the Applicant, including extras, must be Texas Residents, unless it is determined and certified by the Commission in writing that qualified Crew and Cast are not available, and every effort has been made by the production to meet the requirements and best practices as prescribed by the Texas Film Commission Program Guidelines. Reality Television Projects.

Reality Television Project Applicants must expend a minimum of $250,000 in in-state spending. 60% of the project must be filmed in Texas. This must be fulfilled by completing at least 60% of the Filming Days in Texas, or, if permitted by the Commission in its sole discretion: completing at least 60% of the total Man Hours in Texas; or locating in Texas at least 60% of the actual locations used and paid for, not including basecamps.

Applicants must demonstrate that they meet the residency requirements outlined in subsection (b)(3) of this section.

The percentage of the combined total of Crew and Cast, including extras, paid by the Applicant, must be Texas Residents, unless it is determined and certified by the Commission, in writing, that a sufficient number of qualified Crew and Cast, including extras, are not available and every effort has been made by the production to meet the requirements and best practices as prescribed by the Texas Film Commission Program Guidelines..

Commercial Applicants must expend a minimum of $100,000 in in-state spending. 60% of the project must be filmed in Texas. This must be fulfilled by completing at least 60% of the Filming Days in Texas, or, if permitted by the Commission in its sole discretion: completing at least 60% of the total Man Hours in Texas; or locating in Texas at least 60% of the actual locations used and paid for, not including basecamps.

Applicants must demonstrate the residency requirements as outlined in subsection (b)(3) of this section.

The percentage of the combined total of Crew and Cast, including extras, paid by the Applicant must be Texas Residents, unless it is determined and certified by the Commission in writing that a sufficient number of qualified Crew and Cast, including extras, are not available and every effort has been made by the production to meet the requirements and best practices as prescribed by the Texas Film Commission Program Guidelines.

Digital Interactive Media Productions. Digital Interactive Media Production Applicants must expend a minimum of $100,000 in in-state spending. 60% of the project must be filmed in Texas.

This must be fulfilled by completing at least 60% of the Filming Days in Texas, or, if permitted by the Commission in its sole discretion: completing at least 60% of the total Man Hours in Texas; or locating in Texas at least 60% of the actual locations used and paid for, not including basecamps. Applicants must demonstrate they meet the residency requirements as outlined in subsection (b)(3) of this section.

The percentage of the combined total of Crew and Cast, including extras, paid by the Applicant must be Texas Residents, unless it is determined and certified by the Commission in writing that qualified Crew and Cast are not available and every effort has been made by the production to meet the requirements and best practices as prescribed by the Texas Film Commission Program Guidelines.. Educational or Instructional Videos.

Educational or Instructional Video Applicants must expend a minimum of $100,000 in in-state spending. 60% of the project must be filmed in Texas.

This must be fulfilled by completing at least 60% of the Filming Days in Texas, or, if permitted by the Commission in its sole discretion: completing at least 60% of the total Man Hours in Texas; or locating in Texas at least 60% of the actual locations used and paid for, not including basecamps. Applicants must demonstrate that they meet the residency requirements as outlined in subsection (b)(3) of this section.

The percentage of the combined total of Crew and Cast, including extras, paid by the Applicant, must be Texas Residents, unless it is determined and certified by the Commission in writing that qualified Crew and Cast are not available and every effort has been made by the production to meet the requirements and best practices as prescribed by the Texas Film Commission Program Guidelines.

Visual Effect Project for a Feature Film or Television Program: Applicants must expend a minimum of $250,000 in in-state spending. 60% of the project must be filmed in Texas.

This must be fulfilled by completing at least 60% of the Filming Days in Texas, or, if permitted by the Commission in its sole discretion: completing at least 60% of the total Man Hours in Texas; or locating in Texas at least 60% of the actual locations used and paid for, not including basecamps. The Applicant must demonstrate they have met the residency requirements outlined in subsection (b)(3) of this section.

The percentage of the Crew paid by the Applicant and percentage of the Cast, including extras, paid by the Applicant must be Texas Residents, unless it is determined and certified by the Commission in writing that a sufficient number of qualified Crew and Cast, including extras, are not available and every effort has been made by the production to meet the requirements and best practices as prescribed by the Texas Film Commission Program Guidelines.

Visual Effect Project for an Educational or Instruction Video or Commercial: Applicants must expend a minimum of $100,000 in in-state spending. 60% of the project must be filmed in Texas.

This must be fulfilled by completing at least 60% of the Filming Days in Texas, or, if permitted by the Commission in its sole discretion: completing at least 60% of the total Man Hours in Texas; or locating in Texas at least 60% of the actual locations used and paid for, not including basecamps. The Applicant must demonstrate that they have met the residency requirements outlined in subsection (b)(3) of this section.

The percentage of the combined total of Crew and Cast, including extras, paid by the Applicant must be Texas Residents, unless it is determined and certified by the Commission in writing that a sufficient number of qualified Crew and Cast, including extras, are not available and every effort has been made by the production to meet the requirements and best practices as prescribed by the Texas Film Commission Program Guidelines.

Feature Film Applicants must expend a minimum of $250,000 in in-state spending.] Applicants must film at least 60% of a project in Texas.

Applicants must fulfill this requirement by:] completing at least 60% of Filming Days in Texas; or] if the Texas Film Commission (Commission) provides prior written approval:] completing at least 60% of the total project Man Hours in Texas; or] having at least 60% of the actual locations used and paid for, not including basecamps, in Texas.] Except as provided in paragraph (4) of this Subsection, 55% of the Crew paid by the Applicant