Texas increases incentives for game developers

Texas increases incentives for game developers
Seth Tipps

By Seth Tipps

September 11th 2013 at 8:22AM

ESA applauds decision giving industry better footing in Texas

The Texas Film Commission has expanded its economic incentives to game developers who operate within the “Lone Star” state.

While not the first place some think of as a bastion of the digital age, Texas has been one of the fastest growing areas for game development in recent years, with studios crowding into cities like Austin and Houston.

Austin is particularly attractive to startups, as it enjoys a unique culture and music scene that makes many silicon valley professionals feel at ease.

The state occupies an area larger than France, so there's plenty of room for newcomers, and that's just what Texas officials are hoping to attract with the new incentives.

Under the changes for video games, the top tier base percentage for game developers has been raised to 20 percent from 15 percent, the top tier threshold has been lowered from $5 to $3.5 million, and the state has eliminated the wage-only option while making sure visual effects projects can qualify as their own projects.

“We applaud Commissioner Page and the Texas Film Commission for their leadership and vision in expanding these important incentives,” said ESA president and CEO Michael Gallagher.

“This forward-thinking paves the way for exciting new innovations in the entertainment industry. These incentives are not only good for the video game industry, they are a win for Texas as well. These will help keep Texas competitive in the digital media marketplace, attracting and providing 21st century jobs in our growing industry and boosting the state’s economy.”