HB1126: HB1126 Georgia Musical Investment Act; enact

Georgia currently has a film and television tax credit, but this bill creates a separate credit aimed at the live music and theater industry. It amends Georgia's tax code (O.C.G.A. § 48-7-40.33) to let a 'production company' claim a state income tax credit equal to 15 percent of its qualified production expenditures on a 'state certified production,' meaning a concert, musical tour, ballet, opera, or similar live performance, or a recorded musical performance, that the Department of Economic Development approves. Companies get an extra 5 percent credit for spending in lower-income counties (tier 1 or tier 2 areas). The total credits available statewide are capped each year: $2.5 million in 2027, $5 million in 2028, and $7.5 million per year from 2029 through 2031. No single company can claim more than 20 percent of a year's cap. Companies must apply for preapproval, and unused credits can be carried forward three years, used against payroll withholding, or sold to other Georgia taxpayers. The law would take effect January 1, 2027, and automatically repeal on January 1, 2032.

• Creates a new Georgia income tax credit of 15 percent (20 percent in lower-income tier 1 or tier 2 counties) for qualified spending on state certified musical or theatrical productions.
• Requires the Department of Economic Development to certify which live performances or recorded musical performances qualify for the credit.
• Sets statewide annual caps on total credits: $2.5 million (2027), $5 million (2028), and $7.5 million per year (2029 to 2031), with no credits after 2032.
• Limits any single production company to claiming no more than 20 percent of the total credits available in a given year.
• Allows unused credits to be carried forward three years, applied against payroll withholding payments, or sold to another Georgia taxpayer.
• Requires production companies to submit detailed spending and payroll schedules with their tax returns and to reimburse the state for audits of the credit.

Production companies that stage concerts, musical tours, ballets, operas, or other live performances in Georgia, or that create recorded musical performances; workers and vendors paid through these productions; the Department of Economic Development and Department of Revenue, which administer and audit the credit; and Georgia taxpayers who might buy transferred credits.

If enacted, the bill would give the live music and theater industry a financial incentive similar to Georgia's existing film tax credit, potentially encouraging touring shows and recordings to originate or rehearse in the state, while capping the state's total revenue loss from the credit each year through 2031.

• Subsection (a) names the law the 'Georgia Musical Investment Act.'
• Subsection (b) defines key terms, including 'musical or theatrical performance,' 'production company,' and 'qualified production expenditures,' and excludes single non-touring shows, festivals, seminars, and trade shows.
• Subsection (c) sets the credit at 15 percent of qualified expenditures, plus an additional 5 percent for spending in tier 1 or tier 2 counties.
• Subsection (d) caps total annual credits at $2.5 million (2027), $5 million (2028), and $7.5 million per year (2029-2031), with no credits for years starting on or after January 1, 2032.
• Subsection (e) caps any one company's claim at 20 percent of the year's available credits and requires companies to apply for preapproval in the order applications are received.
• Subsection (f) sets reporting requirements, allows a three-year carryforward or use against withholding payments, and permits a one-time transfer or sale of unused credits to another taxpayer.
• Section 2 sets the effective date as January 1, 2027, with automatic repeal of the credit on January 1, 2032.

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)

• tax credits
• music industry
• economic development
• live entertainment
• Georgia tax code