HB1476: HB1476 Income tax; credits for postproduction expenditures; revise amount of credit

26 LC 44 3496 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 to1 tax credits for postproduction expenditures, so as to revise the amount of a credit; to provide2 for eligibility of postproduction expenditures in addition to p roduction expenditures; to3 provide for related matters; to provide for an effective date a nd 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 48-7-40.26A of the Official Code of Georgia Annotated, relating to tax credits8 for postproduction expenditures, is amended by revising subsections (c) and (g) as follows:9 "(c)(1) A postproduction company that has incurred qualified po stproduction10 expenditures of at least $500,000.00 in a taxable year shall be allowed a tax credit against11 the tax imposed by this article, subject to the conditions and limitations set forth in this12 Code section.13 (2)(A) The tax credit allowed shall be equal to 20 percent 30 percent of the qualified14 postproduction expenditures actually invested and expended by t he postproduction15 company in a taxable year.16 H. B. 1476 - 1 - 26 LC 44 3496 (B) An additional tax credit equal to 10 percent of the qualif ied postproduction17 expenditures shall be allowed if the qualified production expen ditures, as defined in18 Code Section 48-7-40.26, were incurred in this state.19 (C) An additional tax credit equal to 5 percent of the qualified production expenditures20 shall be allowed if the qualified production expenditures were incurred in a tier 1 or tier21 2 county as designated by the commissioner of community affairs pursuant to Code22 Section 48-7-40.23 (3) The amount of tax credits allowed to a postproduction comp any under this Code24 section for any single taxable year shall not exceed the postproduction company's total25 aggregate payroll expended to employees working within this state for the taxable year26 the postproduction company claims the tax credit."27 "(g)(1) Any qualified postproduction expenditures for which a p roduction company28 claims a tax credit under Code Section 48-7-40.26 shall not be eligible for postproduction29 expenditures for purposes of the credit authorized under this Code section.30 (2) If a postproduction company and its affiliates claim the credit authorized under Code31 Section 48-7-40, 48-7-40.1, 48-7-40.17, or 48-7-40.18, then the postproduction company32 and its affiliates will shall only be allowed to claim the credit authorized under this Code33 section to the extent that the Georgia resident employees included in the credit calculation34 authorized under this Code section and taken by the postproduct ion company and its35 affiliates on such tax return under this Code section have been permanently excluded36 from the credit authorized under Code Section 48-7-40, 48-7-40. 1, 48-7-40.17, or37 48-7-40.18.38 (2)(A) As used in this paragraph, the term 'affiliate' means th ose entities that are39 included in the postproduction company's affiliated group as defined in Section 1504(a)40 of the Internal Revenue Code and all other entities that are directly or indirectly owned41 by members of the affiliated group.42 H. B. 1476 - 2 - 26 LC 44 3496 (B) A postproduction company may claim a tax credit under this Code section for43 qualified postproduction expenditures even if such production c ompany claims a tax44 credit for postproduction expenditures under Code Section 48-7-40.26 in this state.45 (C) No postproduction company or any affiliate thereof that claims a tax credit under46 this Code section shall be eligible to claim a tax credit under Code Section 48-7-40.2647 for the same qualified postproduction expenditures or production expenditures."48 SECTION 2.49 This Act shall become effective on July 1, 2026, and shall be applicable to all taxable years50 beginning on or after January 1, 2026.51 SECTION 3.52 All laws and parts of laws in conflict with this Act are repealed.53 H. B. 1476 - 3 -