| (a) The following are eligible expenditures:
(1) Wages paid to Texas Residents for work performed
in Texas, including additional compensation paid as part of a contractual
or collective bargaining agreement.
(2) Additional compensation or reimbursements paid
to Texas Residents, including, but not limited to:
(A) mileage or car allowance;
(B) housing allowance; and
(C) box or kit rentals for use of personal equipment.
(3) Workers compensation insurance premiums for Texas
Residents, but only if the premiums are paid to a Texas-based insurance
company or broker.
(4) Payroll company service fees for Texas Residents,
but only if paid to a Texas-based payroll company that processes payroll
within Texas.
(5) Payments made to Texas-domiciled entities, sole
proprietorships, or individuals for goods and services used in Texas
that are directly attributable to the Physical Production of the project.
In the case of Digital Interactive Media Productions, Visual Effects
Projects, and animated projects, the amount attributable to Pre-Production
and research and development costs shall be limited to an amount not
to exceed 30% of the project's overall in-state spending.
(6) Payments for shipping on shipments originating
in Texas.
(7) Air travel to and from Texas on a Texas-based airline
or on a Texas-based air charter service, provided that an itemized
receipt showing an itinerary and passenger name from the airline is
provided confirming payment.
(8) Rentals of vehicles registered and licensed in
the State of Texas or rented from a Texas-domiciled entity or sole
proprietorship, including, but not limited to, national rental car
companies with one or more physical outlets in Texas.
(9) Fees paid to Texas Residents to compose, orchestrate,
and perform music that is specifically created for the project.
(10) Legal fees directly attributable to the Physical
Production of the project that are paid to Texas-based lawyers or
law firms.
(11) Internet purchases, but only if purchased from
a Texas-domiciled entity or sole proprietorship or a retailer with
a physical store or outlet in Texas. Items purchased must be shipped
directly to Texas.
(12) Capital expenditures that are:
(A) less than $1,000 for an individual item from a
Texas-domiciled entity or sole proprietorship; or
(B) equal to or greater than $1,000 for an individual
item purchased that is not exhausted during the course of Production,
so long as such item is sold or appropriately disposed of at the end
of Production and evidence of such sale or disposition is furnished
to the Texas Film Commission (Commission). Evidence of sale or disposition
must show that only the difference between the purchase price and
the sale price is submitted as an eligible expenditure and a copy
of the check or receipt for the sale must be included as back up with
the original purchase documentation.
(13) Location fees, if an executed location agreement
by and between the Applicant and the location owner or owner's representative
is provided to the Commission with the Applicant's Expended Budget.
(b) The following are ineligible expenditures:
(1) Payments made to non-Texas-domiciled entities,
or if a sole proprietorship or individual, to non-Texas Residents.
(2) Payments made for goods and services not used in
Texas.
(3) Payments made for goods and services that are not
directly attributable to the Physical Production of the project.
(4) Payments made by Digital Interactive Media Productions,
Visual Effects Projects, and animated projects for Pre-Production
costs that exceed 30% of the project's overall in-state spending.
(5) Expenses related to distribution, publicity, marketing,
or promotion of the project, including, but not limited to, promotional
stills.
(6) Payments, other than properly allowable location
fees, for facilities and automobiles that are part of a permanent/continuous
business operation including, but not limited to, rental, lease or
mortgage payments, utilities, software, and insurance.
(7) Wages paid to non-Texas Residents, including additional
compensation paid as part of a contractual or collective bargaining
agreement.
(8) Payments made to a company, entity, association,
or person that acts as an agent or broker for companies, entities,
associations, or persons outside of Texas to provide goods, services,
or labor for the purpose of taking advantage of the Texas Moving Image
Industry Incentive Program (also known as "pass-through" entities).
(9) Fees for story rights, music rights, or clearance
rights and licensing fees.
(10) Additional compensation or reimbursements paid
to non-Texas Residents, including, but not limited to:
(A) mileage or car allowance;
(B) housing allowance; and
(C) box or kit rentals for use of personal equipment.
(11) Workers' compensation insurance payments for non-Texas
Residents.
(12) Payroll company service fees for non-Texas Residents
or those paid to a non-Texas-based payroll company.
(13) Payments for shipments originating outside of
Texas.
(14) Payments for mobile and landline telephone service
if the service or billing address is not in Texas.
(15) Payments for alcoholic beverages, cigarettes,
and tobacco products.
(16) Payments to adult-oriented businesses or for adult-oriented
material.
(17) Payments for entertainment, including, but not
limited to, parties, event tickets, movies, hotel mini-bar items,
meals unrelated to the Physical Production of the project, and personal
gifts.
(18) Payments for tips and gratuities.
(19) Capital expenditures for an individual item over
$1,000 which item is not exhausted during the course of Production,
unless such purchase is from a Texas-domiciled entity or sole proprietorship,
the item is sold at the end of the Production and evidence of such
sale is furnished to the Commission. The documentation provided to
the Commission must show that only the difference between the purchase
price and the sale price is submitted as an eligible expenditure and
a copy of the check or receipt for the sale should be included as
back up with the original purchase documentation.
(20) Payments to any business that sells alcohol or
tobacco products reflected on receipts which are not itemized, even
if the submitted item itself is otherwise eligible.
(21) Any "talent handling fees," "overage fees," and
"production fees" for a Commercial where the Applicant is a Production
Company rather than the client or advertisement agency, other than
the following items which must have been budgeted on the original,
awarded bid to be eligible expenditures: the Applicant's insurance
fees from the actual column of the actual Association of Independent
Commercial Producers (AICP) budget (if it does not exceed the original,
awarded bid and if a Texas-based insurance company or broker is used);
editorial or Postproduction fees from the actual column of the AICP
budget (if such fees do not exceed the Postproduction fees on the
original, awarded bid); and any bona fide internal billing items which
do not exceed the usual and customary cost of the goods or services,
such as when Production Company employees work directly on the production
using equipment and/or studio space owned by the Applicant that is
"rented" to the production in lieu of using an outside vendor.
(22) Any payments made other than by the Applicant,
including, but not limited to, payments made on behalf of the Applicant
by a third party, unless a production services agreement or similar
documentation is provided to show sufficient proof, as determined
by the Commission in its sole discretion, of the relationship between
the Applicant and the third party.
(c) The Commission reserves the right to determine
which expenses are eligible or ineligible.
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