Georgia’s film industry has grown dramatically in recent years, thanks to the generous tax incentives enacted in 2008. In the fiscal year 2022, Georgia’s 20–30% film tax credit has generated $8.5 billion in economic impact and created nearly 60,000 jobs in the state, according to studies.
A new bill, however, could throw a wrench into this system. Last week, a Georgia House of Representatives Ways and Means subcommittee unanimously approved House Bill 1180, introducing new criteria that production companies must meet in order to qualify for the most lucrative tax credit. The bill would also place a $900 million cap on transferable tax credits and require companies to spend a minimum of $500,000 to apply for tax incentives. The original proposition was a threshold of $1 million, though it was revised to consider smaller film productions.
“We have become seen as second only to Hollywood, in terms of film production in the U.S.,” says David Sutherland, a professor at UGA’s Terry College of Business. “A lot of lawmakers got worried that [tax credits]pose a risk to state finance. It makes it harder to cut general income taxes across the board.”
To continue reading, visit Flagpole.
