H.R.3844 - Texas is the New Hollywood Act of 2025 (119th Congress)
Summary
H.R.3844, the "Texas is the New Hollywood Act of 2025," aims to amend the Internal Revenue Code of 1986. The bill proposes extending bonus depreciation for qualified film and television productions until January 1, 2035. It also mandates minimum in-state spending thresholds for these productions, specifically targeting Texas.
Expected Effects
The bill's passage would incentivize film and television production companies to invest in Texas. This would be achieved through tax benefits and a requirement for minimum spending within the state. The intended outcome is to stimulate economic activity and job creation within the Texas film industry.
Potential Benefits
- Increased film and television production in Texas.
- Job creation in the film and related industries.
- Economic stimulus for the Texas economy.
- Potential for increased tourism to Texas.
- Attraction of skilled labor and investment to the state.
Potential Disadvantages
- Potential strain on Texas state budget due to tax incentives.
- Possible neglect of other industries in favor of film and television.
- Risk of production companies exploiting incentives without long-term commitment.
- Geographic concentration of benefits within Texas, potentially excluding other states.
- Federal overreach into state economic development.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the US Constitution is primarily based on Congress's power to lay and collect taxes, duties, imposts, and excises, as outlined in Article I, Section 8, Clause 1. The bill uses tax incentives to encourage specific economic activity, which falls under Congress's broad authority to regulate commerce. However, the focus on a single state (Texas) could raise concerns under the principle of equal treatment among states, although the Constitution does not explicitly prohibit targeted economic incentives.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).