HB475: HB475 Income tax credit; film, gaming, video or digital production; revise a definition

Georgia offers an income tax credit to companies that produce film, video, gaming, or digital projects certified by the Department of Economic Development (O.C.G.A. § 48-7-40.26). This bill narrows the definition of 'qualified production activities' that can earn that credit, adding free advertiser supported streaming (FAST) channels to the list of eligible distribution outlets while also spelling out more exclusions, such as content not shot or created in Georgia and user-generated content distributed only on social media. The bill also lets the Department of Economic Development set detailed rules for certification, including deadlines, required paperwork, and application fees, which would go into the state's general fund. If a production company sues over a denied certification and loses, it must now pay the court costs of that litigation. The changes take effect January 1, 2026, and apply to taxable years starting on or after that date.

• Revises the definition of 'qualified production activities' eligible for the film, gaming, video, or digital production tax credit under O.C.G.A. § 48-7-40.26.
• Adds free advertiser supported streaming (FAST) channels as an eligible distribution method for certified productions.
• Clarifies that projects not shot, recorded, or originally created in Georgia, or distributed only via social media, do not qualify.
• Authorizes the Department of Economic Development to charge certification application fees, which go to the state general fund.
• Requires a production company that unsuccessfully appeals a denial of certification in court to pay the resulting court costs.
• Sets the changes to take effect January 1, 2026, applying to taxable years beginning on or after that date.

Film, television, gaming, and digital media production companies seeking Georgia's production tax credit, along with the Department of Economic Development, which certifies eligible projects, and the state revenue commissioner, who receives certification submissions.

Production companies would face a narrower, more clearly defined set of qualifying activities and new certification fees, plus the risk of paying court costs if they unsuccessfully challenge a denied certification, changing the cost and predictability of seeking Georgia's production tax credit.

• Section 1 revises paragraph (11) of subsection (b) to redefine 'qualified production activities,' adding FAST channels and excluding non-Georgia-made or social-media-only content.
• Section 2 revises subsection (i) to direct the Department of Economic Development to set certification rules, including deadlines, documentation, and fees remitted to the state general fund.
• Section 2 also adds a new rule requiring a production company to pay court costs if it loses an appeal of a certification denial.
• Section 3 sets the effective date as January 1, 2026, applying to taxable years beginning on or after that date.
• Section 4 repeals conflicting laws.

1. 2025-05-12Effective Date 2026-01-01
2. 2025-05-12Act 124
3. 2025-05-12House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-27House Agreed Senate Amend or Sub (House)
6. 2025-03-25Senate Passed/Adopted As Amended (Senate)
7. 2025-03-25Senate Third Read (Senate)
8. 2025-03-18Senate Read Second Time (Senate)

• Matthew Gambill (R, HD-015)Primary sponsor
• Lauren McDonald (R, HD-026)
• Will Wade (R, HD-009)
• Soo Hong (R, HD-103)
• Shaw Blackmon (R, HD-146)
• Kasey Carpenter (R, HD-004)
• Matt Brass (R, SD-006)

1. PassedHouse voteFebruary 28, 2025

   161 yea, 2 nay (7 not voting, 10 absent)

   Passage: House Vote #115

2. FailedSenate voteMarch 25, 2025

   3 yea, 49 nay (3 not voting, 1 absent)

   Adoption Of Amendment #2 By The Senator From The 53rd: Senate Vote #284

3. PassedSenate voteMarch 25, 2025

   49 yea, 5 nay (1 not voting, 1 absent)

   Passage As Amended: Senate Vote #285

4. PassedHouse voteMarch 27, 2025

   159 yea, 2 nay (3 not voting, 16 absent)

   Agree To Senate Amendment: House Vote #330

• film tax credit
• Georgia film industry
• gaming and digital production
• state tax policy
• economic development