Texas Governor signs tax break for game companies

Texas Governor Rick Perry has signed into law House Bill 873 which increases the amount of state grants available to video game firms and other media production companies in the Lonestar State.

The press release mainly focuses on what this means to the movie industry, but it applies to all forms of media created by companies that take up shop in the state.

"The passage of House Bill 873 is an important step in helping Texas regain its footing in the moving image business,” Gov. Perry said. “With this legislation, we are strengthening our state’s investment in a vital industry that not only shows off our state to the rest of the world, but also draws investment and creates jobs for Texans."

ESA's Mike Gallagher, who lobbied for the bill's support back in March, seemed very pleased with the governor's decision.

"I commend Governor Rick Perry and the Texas state legislature for recognizing the contributions that the video game industry already has made in the state, and for acting quickly and decisively to ensure that the industry has the opportunity to reach its full potential," he said.

"Today, Texas showed its strong willingness to stay competitive with other states that are seeking to attract video game developers and publishers."

Whole thing through the break.

Thanks, GamePolitics.

Austin — Gov. Rick Perry today signed House Bill (HB) 873 by Rep. Dawnna Dukes and Sen. Robert Duell, which promotes the entertainment industry in Texas by providing incentives for the film, television, video and digital interactive media production industries.

“The passage of House Bill 873 is an important step in helping Texas regain its footing in the moving image business,” Gov. Perry said. “With this legislation, we are strengthening our state’s investment in a vital industry that not only shows off our state to the rest of the world, but also draws investment and creates jobs for Texans.”

The governor was joined by lawmakers, filmmaker Robert Rodriguez, members of the Texas Motion Picture Alliance, and representatives of the film, television, commercial and video game industries from across the state at Rodriguez’s Troublemaker Studios for the signing.

Texas has lost approximately 7,000 crew positions and $500 million in production spending to states with more competitive film incentives, such as New Mexico, whose feature film and television productions contributed $242 million to its state economy in 2008, and Louisiana, which earned $350 million in production in 2007. Currently, about 25 percent of Texas-based film professionals are working in these states, some starting to relocate permanently.

The moving image industry has brought more than $1.2 billion dollars to the state in the past 10 years. Gov. Perry noted that these investments would not only boost the entertainment industry in Texas, but would also indirectly affect other industries and businesses that support these productions.

For more information on Texas film incentives, please visit http://www.governor.state.tx.us/film