---
title: HB 1125. Georgia Entertainment Industry Investment Act; add independent filmmakers to list of entities eligible to claim tax credits for qualified production activities
collection: bills
id: 2025-2026/hb1125
cite_as: HB 1125, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1125
md_url: https://georgiacommons.org/bills/2025-2026/hb1125.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1125/text
source_url: https://www.legis.ga.gov/legislation/72679
date: 2026-02-04
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 132
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1125.md?full=1
bill_number: HB 1125
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-02-02
last_action: House Second Readers
sponsors:
- Yasmin Neal
- Kasey Carpenter
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1125/2025
upstream_id: 2104328
summaries_model: claude-sonnet-5
topic_tags:
- film tax credits
- entertainment industry
- independent filmmakers
- Georgia tax law
- economic development
---
# HB 1125. Georgia Entertainment Industry Investment Act; add independent filmmakers to list of entities eligible to claim tax credits for qualified production activities
## Text
House Bill 1125
By: Representatives Neal of the 79th and Carpenter of the 4th
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 48-7-40.26 of the Official Code of Georgia Annotated, the "Georgia
Entertainment Industry Investment Act," so as to add independent filmmakers to the list of
entities eligible to claim tax credits for qualified production activities; to provide a definition;
to provide for related matters; to provide an effective date and applicability; to repeal
conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Code Section 48-7-40.26 of the Official Code of Georgia Annotated, the "Georgia
Entertainment Industry Investment Act," is amended in subsection (b) by adding a new
paragraph to read as follows:
"(4.1) 'Independent filmmaker' means a production company other than a qualified
interactive entertainment production company with gross income less than $1 million for
the taxable year that is primarily engaged in qualified production activities."
SECTION 2.
Said Code section is further amended by revising subsection (c) as follows:
"(c) For any production company or qualified interactive entertainment production
company and its affiliates that invest in a state certified production approved by the
Department of Economic Development and whose average annual total production
expenditures in this state did not exceed $30 million for 2002, 2003, and 2004, there shall
be allowed an income tax credit against the tax imposed under this article. The tax credit
under this subsection shall be allowed if the base investment in this state equals or exceeds
$500,000.00 for qualified production activities, except that any independent filmmaker
shall be allowed the tax credit under this subsection irrespective of the amount of its base
investment in this state, and that any qualified interactive entertainment production
company shall be allowed the tax credit under this subsection if the base investment in this
state equals or exceeds $250,000.00 for qualified production activities on or after January
1, 2018, and shall be calculated as follows:
(1) The production company or qualified interactive entertainment production company
shall be allowed a tax credit equal to 20 percent of the base investment in this state; and
(2)(A) The production company or qualified interactive entertainment production
company shall be allowed an additional tax credit equal to 10 percent of such base
investment if the qualified production activity includes a qualified Georgia promotion.
Such additional tax credit shall be allowed for any qualified production that includes
a qualified Georgia promotion upon its release to the general public. In lieu of the
inclusion of the Georgia promotional logo, the production company or qualified
interactive entertainment production company may offer alternative marketing
opportunities to be evaluated by the Department of Economic Development to ensure
that they offer equal or greater promotional value to the State of Georgia. The
Department of Economic Development shall electronically certify to the Department
of Revenue when the requirements of this paragraph and paragraph (2) of subsection
(d) of this Code section have been met.
(B) The Department of Economic Development shall prepare an annual report detailing
the marketing opportunities it has approved under the provisions of subparagraph (A)
of this paragraph. The report shall include, but not be limited to:
(i) The goals and strategy behind each marketing opportunity approved pursuant to
the provisions of subparagraph (A) of this paragraph;
(ii) The names of all production companies approved by the Department of Economic
Development to provide alternative marketing opportunities;
(iii) The estimated value to the state of each approved alternative marketing
opportunity compared to the estimated value of the Georgia promotional logo; and
(iv) The names of all production companies who chose to include the Georgia
promotional logo in their final production instead of offering the state an alternative
marketing proposal.
The report required under this subparagraph shall be completed no later than January
1 of each year and presented to each member of the House Committee on Ways and
Means, the Senate Finance Committee, the Senate Economic Development and
Tourism Committee, the House Committee on Economic Development and Tourism,
and the Governor.
(C) The additional percentage of tax credit allowed by this paragraph and by
paragraph (2) of subsection (d) of this Code section shall not be allowed to a production
company for any qualified production activity or state certified production that has not
been commercially distributed in multiple markets.
(D) The additional percentage of tax credit that is allowed by this paragraph and by
paragraph (2) of subsection (d) of this Code section shall not be issued final
certification pursuant to subsection (l) of this Code section unless and until the state
certified production has been commercially distributed in multiple markets within five
years of the date that the project was first certified by the Department of Economic
Development.
(3) The base investment and the amount of the credit allowed by this subsection and by
subsection (d) of this Code section with respect to a production company shall be subject
to the limitations of and any reductions required by subsection (l) of this Code section."
SECTION 3.
This Act shall become effective on January 1, 2027, and shall be applicable to taxable years
beginning on or after such date.
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
A Georgia House bill would let independent filmmakers claim the state's film tax credit without meeting the usual minimum spending requirement, while defining what counts as an independent filmmaker.
### Plain-language summary
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.
### What it does
- 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.
### Who it affects
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.
### Why it matters
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.
### Key provisions
- 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.
## Status
- Status: Introduced (2026-02-02)
- Last action: House Second Readers (2026-02-04)
- Sponsors: Yasmin Neal, Kasey Carpenter
- Official page: https://www.legis.ga.gov/legislation/72679
> The history, votes, and amendments (132 characters) are at https://georgiacommons.org/bills/2025-2026/hb1125.md?full=1