HB 1125: Georgia Entertainment Industry Investment Act; add independent filmmakers to list of entities eligible to claim tax credits for qualified production activities

Georgia's film tax credit program, the Georgia Entertainment Industry Investment Act (O.C.G.A. § 48-7-40.26), currently requires production companies to spend at least $500,000 in the state to qualify for the 20% base tax credit, with a lower $250,000 threshold for interactive entertainment companies like video game makers. This bill adds a new category, independent filmmaker, defined as a production company (other than a qualified interactive entertainment company) with gross income under $1 million for the year that is mainly doing qualified production work. Under the bill, independent filmmakers who qualify would be allowed the tax credit no matter how small their base investment in Georgia is, removing the usual spending floor for them. The rest of the credit's structure, including the 20% base rate and the additional 10% for productions that include a Georgia promotional logo or approved marketing alternative, stays the same. The change would take effect January 1, 2027, and apply to tax years starting on or after that date.

• Adds a new legal definition of 'independent filmmaker' to Georgia's film tax credit law: a production company with under $1 million in gross income mainly doing qualified production activities.
• Removes the minimum base investment requirement for independent filmmakers, letting them claim the tax credit regardless of how much they spend in Georgia.
• Leaves the existing $500,000 minimum investment threshold in place for other production companies and the $250,000 threshold for qualified interactive entertainment companies.
• Keeps the existing tax credit rates unchanged: 20% of base investment plus an additional 10% for productions with a qualified Georgia promotion.
• Sets the changes to take effect January 1, 2027, applying to tax years beginning on or after that date.

Independent, low-budget filmmakers and small production companies operating in Georgia, who would newly qualify for the film tax credit without meeting the usual spending minimum. It also affects the Department of Economic Development and Department of Revenue, which administer and certify the credit.

Small filmmakers with limited budgets have not been able to reach the $500,000 spending threshold required for Georgia's film tax credit. This bill would open the credit to them regardless of spending level, potentially expanding who benefits from the state's entertainment industry incentive program starting in 2027.

• Section 1 adds a new paragraph (4.1) to O.C.G.A. § 48-7-40.26(b) defining 'independent filmmaker' as a production company with gross income under $1 million, other than a qualified interactive entertainment production company.
• Section 2 revises subsection (c) so that independent filmmakers are allowed the tax credit regardless of the amount of their base investment in Georgia, unlike other production companies.
• Section 2 keeps the $250,000 base investment threshold for qualified interactive entertainment production companies unchanged.
• Section 2 keeps the existing credit calculation: 20 percent of base investment, plus an additional 10 percent for productions including a qualified Georgia promotion.
• Section 3 sets the effective date as January 1, 2027, applying to taxable years beginning on or after that date.
• Section 4 repeals conflicting laws.

1. 2026-02-04House Second Readers (House)
2. 2026-02-03House First Readers (House)
3. 2026-02-02House Hopper (House)

• Yasmin Neal (D, HD-079)Primary sponsor
• Kasey Carpenter (R, HD-004)

• film tax credits
• entertainment industry
• independent filmmakers
• Georgia tax law
• economic development