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

26 LC 59 0187 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 "Georgia1 Entertainment Industry Investment Act," so as to add independent filmmakers to the list of2 entities eligible to claim tax credits for qualified production activities; to provide a definition;3 to provide for related matters; to provide an effective date an d applicability; to repeal4 conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Code Section 48-7-40.26 of the Official Code of Georgia Annotat ed, the "Georgia8 Entertainment Industry Investment Act," is amended in subsectio n (b) by adding a new9 paragraph to read as follows:10 "(4.1) 'Independent filmmaker' means a production company other than a qualified11 interactive entertainment production company with gross income less than $1 million for12 the taxable year that is primarily engaged in qualified production activities."13 H. B. 1125 - 1 - 26 LC 59 0187 SECTION 2.14 Said Code section is further amended by revising subsection (c) as follows:15 "(c) For any production company or qualified interactive entert ainment production16 company and its affiliates that invest in a state certified pro duction approved by the17 Department of Economic Development and whose average annual tot al production18 expenditures in this state did not exceed $30 million for 2002, 2003, and 2004, there shall19 be allowed an income tax credit against the tax imposed under this article. The tax credit20 under this subsection shall be allowed if the base investment in this state equals or exceeds21 $500,000.00 for qualified production activities, except that an y independent filmmaker22 shall be allowed the tax credit under this subsection irrespective of the amount of its base23 investment in this state, and that any qualified interactive entertainment production24 company shall be allowed the tax credit under this subsection if the base investment in this25 state equals or exceeds $250,000.00 for qualified production activities on or after January26 1, 2018, and shall be calculated as follows:27 (1) The production company or qualified interactive entertainment production company28 shall be allowed a tax credit equal to 20 percent of the base investment in this state; and29 (2)(A) The production company or qualified interactive enterta inment production30 company shall be allowed an additional tax credit equal to 10 p ercent of such base31 investment if the qualified production activity includes a qualified Georgia promotion. 32 Such additional tax credit shall be allowed for any qualified p roduction that includes33 a qualified Georgia promotion upon its release to the general p ublic. In lieu of the34 inclusion of the Georgia promotional logo, the production compa ny or qualified35 interactive entertainment production company may offer alternat ive marketing36 opportunities to be evaluated by the Department of Economic Development to ensure37 that they offer equal or greater promotional value to the State of Georgia. The38 Department of Economic Development shall electronically certify to the Department39 H. B. 1125 - 2 - 26 LC 59 0187 of Revenue when the requirements of this paragraph and paragraph (2) of subsection40 (d) of this Code section have been met.41 (B) The Department of Economic Development shall prepare an annual report detailing42 the marketing opportunities it has approved under the provisions of subparagraph (A)43 of this paragraph. The report shall include, but not be limited to:44 (i) The goals and strategy behind each marketing opportunity approved pursuant to45 the provisions of subparagraph (A) of this paragraph;46 (ii) The names of all production companies approved by the Department of Economic47 Development to provide alternative marketing opportunities;48 (iii) The estimated value to the state of each approved altern ative marketing49 opportunity compared to the estimated value of the Georgia promotional logo; and50 (iv) The names of all production companies who chose to includ e the Georgia51 promotional logo in their final production instead of offering the state an alternative52 marketing proposal.53 The report required under this subparagraph shall be completed no later than January54 1 of each year and presented to each member of the House Commit tee on Ways and55 Means, the Senate Finance Committee, the Senate Economic Develo pment and56 Tourism Committee, the House Committee on Economic Development and Tourism,57 and the Governor.58 (C) The additional percentage of tax credit allowed by this pa ragraph and by59 paragraph (2) of subsection (d) of this Code section shall not be allowed to a production60 company for any qualified production activity or state certified production that has not61 been commercially distributed in multiple markets.62 (D) The additional percentage of tax credit that is allowed by this paragraph and by63 paragraph (2) of subsection (d) of this Code section shall not be issued final64 certification pursuant to subsection (l) of this Code section u nless and until the state65 certified production has been commercially distributed in multiple markets within five66 H. B. 1125 - 3 - 26 LC 59 0187 years of the date that the project was first certified by the D epartment of Economic67 Development.68 (3) The base investment and the amount of the credit allowed by this subsection and by69 subsection (d) of this Code section with respect to a production company shall be subject70 to the limitations of and any reductions required by subsection (l) of this Code section."71 SECTION 3.72 This Act shall become effective on January 1, 2027, and shall be applicable to taxable years73 beginning on or after such date.74 SECTION 4.75 All laws and parts of laws in conflict with this Act are repealed.76 H. B. 1125 - 4 -