House Bill 1476
By: Representatives Hong of the 103rd, Carpenter of the 4th, Frye of the 122nd, Crowe of the
118th, and Cannon of the 172nd
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 48-7-40.26A of the Official Code of Georgia Annotated, relating to
tax credits for postproduction expenditures, so as to revise the amount of a credit; to provide
for eligibility of postproduction expenditures in addition to production expenditures; to
provide for related matters; to provide for 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 48-7-40.26A of the Official Code of Georgia Annotated, relating to tax credits
for postproduction expenditures, is amended by revising subsections (c) and (g) as follows:
"(c)(1) A postproduction company that has incurred qualified postproduction
expenditures of at least $500,000.00 in a taxable year shall be allowed a tax credit against
the tax imposed by this article, subject to the conditions and limitations set forth in this
Code section.
(2)(A) The tax credit allowed shall be equal to <del>20 percent</del> <ins>30 percent</ins> of the qualified
postproduction expenditures actually invested and expended by the postproduction
company in a taxable year.
(B) <del>An additional tax credit equal to 10 percent of the qualified postproduction
expenditures shall be allowed if the qualified production expenditures, as defined in
Code Section 48-7-40.26, were incurred in this state.
(C)</del> An additional tax credit equal to 5 percent of the qualified production expenditures
shall be allowed if the qualified production expenditures were incurred in a tier 1 or tier
2 county as designated by the commissioner of community affairs pursuant to Code
Section 48-7-40.
(3) The amount of tax credits allowed to a postproduction company under this Code
section for any single taxable year shall not exceed the postproduction company's total
aggregate payroll expended to employees working within this state for the taxable year
the postproduction company claims the tax credit."
"(g)(1) <del>Any qualified postproduction expenditures for which a production company
claims a tax credit under Code Section 48-7-40.26 shall not be eligible for postproduction
expenditures for purposes of the credit authorized under this Code section.
(2)</del> If a postproduction company and its affiliates claim the credit authorized under Code
Section 48-7-40, 48-7-40.1, 48-7-40.17, or 48-7-40.18, then the postproduction company
and its affiliates <del>will</del> <ins>shall</ins> only be allowed to claim the credit authorized under this Code
section to the extent that the Georgia resident employees included in the credit calculation
authorized under this Code section and taken by the postproduction company and its
affiliates on such tax return under this Code section have been permanently excluded
from the credit authorized under Code Section 48-7-40, 48-7-40.1, 48-7-40.17, or
48-7-40.18.
<ins>(2)(A) As used in this paragraph, the term 'affiliate' means those entities that are
included in the postproduction company's affiliated group as defined in Section 1504(a)
of the Internal Revenue Code and all other entities that are directly or indirectly owned
by members of the affiliated group.
</ins>
<ins>(B) A postproduction company may claim a tax credit under this Code section for
qualified postproduction expenditures even if such production company claims a tax
credit for postproduction expenditures under Code Section 48-7-40.26 in this state.
(C) No postproduction company or any affiliate thereof that claims a tax credit under
this Code section shall be eligible to claim a tax credit under Code Section 48-7-40.26
for the same qualified postproduction expenditures or production expenditures."
</ins> SECTION 2.
This Act shall become effective on July 1, 2026, and shall be applicable to all taxable years
beginning on or after January 1, 2026.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.