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:
<ins>"(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."
</ins>
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 <ins>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</ins> 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 <del>that is</del> 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.