The US state of Texas has passed a bill that will see local videogames firms awarded development tax breaks.

The legislation – known as House Bill 873 – gives the Texas Film Commission a remit to offer financial help to videogame projects in addition to the fiscal aid it can already grant local film and TV content producers.

The announcement could further strengthen UK videogame trade body Tiga’s case for a similar tax break in Blighty.

Governor Rick Perry, who helped sign Bill 873 into power, claimed the legislation would strengthen Texas’ investment in a vital industry.

The state’s game industry grew by 17 per cent in 2006, according to US trade body the Entertainment Software Association (ESA) figures, adding $395m (£272m/€307m) to Texas’ liberal coffers. ®