House Bill 655
By: Representatives Hilton of the 48th, Burchett of the 176th, Clark of the 100th, Carpenter of
the 4th, Sainz of the 180th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
relating to imposition, rate, computation, exemptions, and credits for income taxes, so as to
renew a tax credit for postproduction expenditures; to increase the annual aggregate limit;
to provide for an additional credit if certain qualified expenditures are incurred in certain
rural counties; to provide for qualified productions and expenditures; to allow the credit with
respect to special venue projects; 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.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
imposition, rate, computation, exemptions, and credits for income taxes, is amended in Code
Section 48-7-40.26A, relating to tax credits for postproduction expenditures, by revising
paragraphs (5) and (6) of subsection (b) and subsections (d) and (f) and by adding a new
subsection to read as follows:
"(5) 'Qualified postproduction expenditures' means expenditures incurred in this state
directly in qualified postproduction activities, including without limitation the following:
(A) Costs associated with photography and sound synchronization;
(B) Expenditures, excluding license fees, incurred with Georgia companies for sound
recordings and musical compositions, lighting, and related services and materials;
(C) Editing and related services;
(D) Rental of facilities and equipment;
(E) Leasing of vehicles;
(F) Costs of food and lodging;
(G) Digital or tape editing, film processing, transfers of film to tape or digital format,
sound mixing, computer graphics services, <del>special</del> <ins>visual</ins> effects services, and
animation services;
(H) Total aggregate payroll;
(I) Airfare, if purchased through a Georgia travel agency or travel company;
(J) Insurance costs and bonding, if purchased through a Georgia insurance agency; and
(K) Other direct postproduction costs for the project in accordance with generally
accepted entertainment industry practices.
<del>This</del> <ins>Such</ins> term includes expenditures incurred in this state <del>for footage shot</del> <ins>with respect
to a qualified production shot, recorded, or originally created</ins> inside <ins>this state</ins> or outside
this state.
(6) 'Qualified production' means a film, video, or digital project, including only the
following: feature films, series, pilots, movies for television, televised commercial
advertisements, music videos, interactive entertainment, <ins>special venue projects,</ins> or sound
recording projects used in feature films, series, pilots, or movies for television. <del>This</del> <ins>Such
</ins> term shall include projects shot, recorded, or originally created, <ins>whether inside this state
or outside this state,</ins> in either short or long form, animation and music, fixed on a delivery
system which includes without limitation film, videotape, computer disc, laser disc, and
any element of the digital domain, from which the program is viewed or reproduced, and
which is intended for multimarket commercial distribution via theaters, <ins>special venues,
</ins>
video on demand, direct to DVD, digital platforms designed for the distribution of
interactive games, licensing for exhibition by individual television stations, groups of
stations, networks, advertiser supported sites, cable television stations, or public
broadcasting stations. Such term shall not include the coverage of news and athletic
events, local interest programming, instructional videos, and corporate videos."
<ins>"(c.2) A postproduction company allowed a tax credit pursuant to subsection (c) or (c.1)
of this Code section shall be allowed an additional tax credit equal to 5 percent of the
qualified postproduction expenditures actually invested and expended by the
postproduction company in a taxable year if $250,000.00 or more of the qualified
postproduction expenditures are incurred in one or more counties in this state that
individually have a population of less than 100,000 with 10 percent or more of such
population living in poverty based upon the most recent, reliable, and applicable data
published by the United States Bureau of the Census. On or before December 31 of each
year, the commissioner of community affairs shall publish a list of such counties.
</ins> (d) <del>The tax credits allowed under this Code section for all postproduction companies shall
be subject to the following aggregate annual caps:
(1)</del> For taxable years beginning on or after January 1, <del>2018</del> <ins>2026,</ins> and before January 1,
<del>2019</del> <ins>2031,</ins> the aggregate amount of tax credits allowed under this Code section shall not
exceed <del>$10</del> <ins>$60</ins> million <ins>per year;
</ins> <del>(2) For taxable years beginning on or after January 1, 2019, and before January 1, 2020,
the aggregate amount of tax credits allowed under this Code section shall not exceed $10
million;
(3) For taxable years beginning on or after January 1, 2020, and before January 1, 2023,
the aggregate amount of tax credits allowed under this Code section shall not exceed $10
million per year;
(4) The tax credits allowed under this Code section shall not be available for taxable
years beginning on or after January 1, 2023; and
</del>
<del>(5) If;</del> <ins>provided, however, that, if</ins> the aggregate amount of tax credits claimed by
taxpayers under this Code section during a year is less than the aggregate annual cap
applicable to such year, the unclaimed portion of the aggregate annual cap shall be added
to the aggregate annual cap applicable to the next succeeding year or years until it is fully
claimed."
"(f) For taxable years beginning on or after January 1, <del>2018</del> <ins>2026,</ins> and before January 1,
<del>2023</del> <ins>2031,</ins> the postproduction company shall report to the Department of Revenue on its
Georgia income tax return the monthly average number of full-time employees subject to
Georgia income tax withholding for the taxable year. <ins>As used in</ins> <del>For purposes of</del> this
subsection, the term 'full-time employee' <del>shall mean</del> <ins>means</ins> a person who performs a job
that requires a minimum of 35 hours <del>a</del> <ins>per</ins> week, and pays at or above the average wage
earned in the county with the lowest average wage earned in this state, as reported in the
most recently available annual issue of the Georgia Employment and Wages Averages
Report of the Department of Labor. Notwithstanding Code Sections 48-2-15, 48-7-60, and
48-7-61, for such taxable years, the commissioner shall annually report to the House
Committee on Ways and Means and the Senate Finance Committee. The report shall
include the name, tax year beginning, and monthly average number of full-time employees
for each postproduction company. The <del>first</del> report shall be submitted <ins>annually</ins> by June 30,
<del>2018, and each year thereafter by June 30."
</del> SECTION 2.
This Act shall become effective on July 1, 2025, 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.