HB 1126: Georgia Musical Investment Act; enact

This bill fills in a currently reserved section of Georgia tax law (O.C.G.A. § 48-7-40.33) with the 'Georgia Musical Investment Act.' It creates an income tax credit for production companies that spend money in Georgia preparing, rehearsing, or staging concerts, tours, ballets, operas, live variety shows, or recorded musical performances that get certified by the Department of Economic Development as 'state certified productions.' The credit equals 15 percent of qualified in-state spending, plus an extra 5 percent for spending in counties the state designates as economically less developed (tier 1 or tier 2). Total credits statewide are capped each year, starting at $2.5 million in 2027 and rising to $7.5 million by 2029 through 2031. No single company can claim more than 20 percent of a year's cap. Companies apply to the Department of Economic Development for preapproval, and unused credits can carry forward three years or be sold to other Georgia taxpayers. The credit and the whole Code section expire January 1, 2032.

• Creates a new state income tax credit equal to 15 percent of a production company's qualified in-state spending on live musical or theatrical performances and recorded musical performances certified by the state.
• Adds a further 5 percent credit for spending in counties designated as tier 1 or tier 2 (less economically developed) by the commissioner of community affairs.
• Sets statewide annual caps on total credits: $2.5 million in 2027, $5 million in 2028, and $7.5 million per year from 2029 through 2031, with no credits allowed starting in 2032.
• Limits any single production company and its affiliates to no more than 20 percent of the year's available credit pool.
• Allows companies to carry forward unused credits for three years or sell/transfer them to other Georgia taxpayers, subject to notification and compliance requirements.
• Requires companies to apply for preapproval from the Department of Economic Development and attach detailed spending and payroll schedules to their tax returns.

Production companies staging concerts, tours, ballets, operas, or other live musical and theatrical performances in Georgia, along with their employees and loan-out companies they pay. It also involves the Department of Economic Development, the Department of Revenue, and any Georgia taxpayers who purchase transferred tax credits.

Production companies that bring live musical and theatrical performances to Georgia, or record musical performances here, could recover a meaningful share of their in-state spending through tax credits, potentially encouraging more of that work to happen in the state, while the credits are capped and set to expire in 2032.

• Section 1 rewrites O.C.G.A. § 48-7-40.33 to define 'musical or theatrical performance,' 'production company,' 'qualified production expenditures,' and other key terms used to determine eligibility.
• Subsection (c) sets the base credit at 15 percent of qualified expenditures, with 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), ending the credit entirely for taxable years starting in 2032.
• Subsection (e) caps any single company's share at 20 percent of a year's available credits and requires preapproval applications processed in order of submission.
• Subsection (f) allows unused credits to carry forward three years or be applied against monthly withholding payments, and permits a single transfer or sale of earned credits to another Georgia taxpayer.
• Subsection (g) and (h) direct the Department of Economic Development to certify qualifying projects and the state revenue commissioner to write implementing rules.
• Section 2 sets the effective date as January 1, 2027, with automatic repeal of the whole credit on January 1, 2032.

1. 2026-02-04House Second Readers (Cámara de Representantes)
2. 2026-02-03House First Readers (Cámara de Representantes)
3. 2026-02-02House Hopper (Cámara de Representantes)

• Yasmin Neal (D, HD-079)Patrocinador principal
• Kasey Carpenter (R, HD-004)

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