The Dallas Morning News reported recently that the entire city of Dallas, Texas, may soon be designated as a media production and development zone. This comes after the city council approved a request to the state for this designation, which would allow Dallas to offer sales and use tax exemptions for two years to projects involving the construction, expansion, or renovation of media production facilities.
The incentive program was established by the state in 2009 to promote the development of TV and film production sites and stimulate the state’s economy. One of the first projects selected by the city for this incentive is the renovation of South Side Studios in South Dallas. This project is expected to generate $13.6 million in economic activity and create 86 new jobs.
The cost to the city for providing these tax exemptions is estimated to be $150,000 in sales tax money and an additional $456,000 in tax revenue. The zone designation would be in effect for at least five years, and cities can request up to three projects to receive tax exemptions simultaneously. Other cities in Texas with existing media production and development zones include Austin, Fort Worth, and Midlothian.
According to data from the National Conference of State Legislatures, at least 18 states have implemented or expanded film tax incentives since 2021. These incentives are aimed at attracting media production projects and boosting economic growth in various regions across America.
