HB1125: HB1125 Georgia Entertainment Industry Investment Act; add independent filmmakers to list of entities eligible to claim tax credits for qualified production activities

Georgia currently offers a tax credit to production companies and video game makers that invest in state certified film and TV productions, but to qualify a company generally must spend at least $500,000 on its production in Georgia. This bill amends the Georgia Entertainment Industry Investment Act (O.C.G.A. § 48-7-40.26) to add a new category, independent filmmaker, defined as a production company (other than a video game company) with less than $1 million in gross income for the year that is mainly doing qualified production work. Under the bill, an independent filmmaker could claim the 20 percent base tax credit, and the additional 10 percent credit for including a Georgia promotional logo, regardless of how much it actually spent in the state, as long as it otherwise meets the program's rules. The change would take effect January 1, 2027, and apply to tax years starting on or after that date.

• Adds a new definition of 'independent filmmaker' to Georgia's film tax credit law: a production company (not a video game company) with under $1 million in gross income mainly doing qualified production work.
• Removes the $500,000 minimum base investment requirement specifically for independent filmmakers, letting them qualify for the tax credit regardless of investment size.
• Leaves in place the existing 20 percent base credit and additional 10 percent credit for Georgia promotional logo inclusion, now extended to qualifying independent filmmakers.
• Sets the change to take effect January 1, 2027, applying only to tax years beginning on or after that date.

Small, independent film and TV production companies in Georgia with less than $1 million in gross income, the Georgia Department of Economic Development, which certifies productions and evaluates promotional marketing, and the Department of Revenue, which administers the tax credit.

Small filmmakers who could not previously meet the $500,000 spending threshold would become eligible for the same tax credit larger productions receive, potentially making low-budget Georgia film projects more financially viable starting in 2027.

• Section 1 adds paragraph (4.1) to subsection (b), defining 'independent filmmaker' as a production company (excluding video game companies) with gross income under $1 million that is primarily doing qualified production activities.
• Section 2 revises subsection (c) to exempt independent filmmakers from the $500,000 base investment minimum otherwise required to claim the tax credit.
• Section 2 keeps the existing structure intact: a 20 percent base credit and an additional 10 percent credit tied to 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
• independent filmmakers
• Georgia entertainment industry
• state tax incentives