Dallas Takes a Step Towards Boosting Economy with New Media Production and Development Zone Designation

Dallas is on its way to becoming a media production and development zone, with the city council recently unanimously approving a request for this designation. This move will allow Dallas to offer sales and use tax exemptions for two years to projects involving the construction, expansion, or renovation of a media production facility. The initiative aims to boost the state’s economy by encouraging more TV and film production sites.

Everton Bailey Jr. writes that the incentive program was originally approved by the state in 2009 to stimulate the development of media production facilities. The city has already selected its first project, the renovation of South Side Studios in South Dallas. This project is estimated to bring in $13.6 million in economic activity and create 86 new jobs. The city will invest $150,000 in sales tax money and another $456,000 in tax revenue to support this project.

If approved, this zone designation would last for at least five years, and cities can request tax exemptions for up to three projects at a time. Other Texas cities such as Austin, Fort Worth, and Midlothian already have existing media production and development zones. According to the National Conference of State Legislatures, at least 18 states have implemented or expanded film tax incentives since 2021.