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

25 HB 475/AP House Bill 475 (AS PASSED HOUSE AND SENATE) By: Representatives Gambill of the 15th, McDonald III of the 26th, Wade of the 9th, Hong of the 103rd, Blackmon of the 146th, and others A BILL TO BE ENTITLED AN ACT To amend Code Section 48-7-40.26 of the Official Code of Georgia Annotated, relating to1 income tax credits for film, gaming, video, or digital production, so as to revise a definition;2 to revise rules and regulations; to authorize certain fees; to require companies to pay court3 costs if the denial of certification is upheld by a court on ap peal; to provide for related4 matters; to provide for an effective date and applicability; to repeal conflicting laws; and for5 other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Code Section 48-7-40.26 of the Official Code of Georgia Annotated, relating to income tax9 credits for film, gaming, video, or digital production, is amended by revising paragraph (11)10 of subsection (b) as follows:11 "(11) 'Qualified production activities' means the production of new film, video, or digital12 projects produced in this state and approved by the Department of Economic13 Development as state certified productions, including only the following: feature films,14 series, pilots, movies for television, televised commercial advertisements, music videos,15 interactive entertainment, or prereleased interactive games. Such activities shall include16 H. B. 475 - 1 - 25 HB 475/AP projects recorded in this state, in whole or in part, in either short or long form, animation17 and music, fixed on a delivery system which includes without limitation film, videotape,18 computer disc, laser disc, and any element of the digital domain, from which the program19 is viewed or reproduced, and which is intended for multimarket commercial distribution20 via theaters, video on demand, direct to DVD, digital platforms designed for the21 distribution of interactive games, licensing for exhibition by individual television stations,22 groups of stations, networks, advertiser supported sites, paid subscription based23 platforms, free advertiser supported streaming television (FAST ) channels, cable24 television stations, or public broadcasting stations. Such ter m shall not include the25 coverage of news or athletic events, local interest programming , instructional videos,26 corporate videos, any project that is not intended for multimar ket commercial27 distribution, user-generated content distributed exclusively via social media platforms,28 or any project not shot, recorded, or originally created in Georgia."29 SECTION 2.30 Said Code section is further amended by revising subsection (i) as follows: 31 "(i)(1) The Department of Economic Development shall determine throug h the32 promulgation of rules and regulations what projects qualify for the tax credits authorized33 under this Code section. Such rules and regulations shall include, but not be limited to,34 certification application deadlines, qualified project content types and distribution35 methods, certification application process and required supporting documentation, and36 certification application fees. Certification shall be submitted to the state revenue37 commissioner.38 (2) The Department of Economic Development may charge reasonable fees associated39 with the certification process established pursuant to this subsection and such fees shall be40 remitted to the state general fund.41 H. B. 475 - 2 - 25 HB 475/AP (3) If the Department of Economic Development prevails in the litigation of an appeal42 on the denial of certification, the plaintiff production company shall pay all court costs43 associated with such litigation."44 SECTION 3.45 This Act shall become effective on January 1, 2026, and shall be applicable to taxable years46 beginning on or after such date.47 SECTION 4.48 All laws and parts of laws in conflict with this Act are repealed.49 H. B. 475 - 3 -