HB 475: Income tax credit; film, gaming, video or digital production; revise a definition

Georgia offers an income tax credit (O.C.G.A. § 48-7-40.26) to companies that produce film, gaming, video, or digital projects certified by the Department of Economic Development. This bill updates the definition of 'qualified production activities' that can earn the credit. It drops references to laser discs and 'televised' commercial advertisements as separate categories, removes 'advertiser supported sites' from the list of distribution outlets, and adds paid subscription platforms and free ad-supported streaming television (FAST) channels. It also excludes user-generated content distributed only through social media from qualifying. The bill also changes how certification works. The Department of Economic Development must set rules covering application deadlines, project types, required paperwork, and application fees, and it can charge reasonable fees that go to the state general fund. If a production company appeals a denied certification in court and loses, it must pay the court costs of that litigation. The changes take effect January 1, 2026 and apply to taxable years starting on or after that date.

• Removes 'televised' as a qualifier for commercial advertisements and drops laser discs from the list of formats eligible for the tax credit.
• Removes 'advertiser supported sites' from qualifying distribution channels and adds paid subscription platforms and free ad-supported streaming television (FAST) channels.
• Excludes user-generated content distributed only on social media platforms from qualifying for the tax credit.
• Requires the Department of Economic Development to write rules covering certification deadlines, qualifying project types, application procedures, documentation, and fees.
• Allows the Department of Economic Development to charge certification fees, which would go into the state general fund rather than the department's own budget.
• Requires a production company to pay court costs if it appeals a denied certification and the department wins the case.

Film, television, gaming, and digital media production companies seeking Georgia's production tax credit; the Department of Economic Development, which certifies productions and sets fees; and companies that challenge a denied certification in court, since they could owe court costs.

Production companies would face updated rules about which projects and distribution methods qualify for a valuable state tax credit, including new streaming categories and an exclusion for social media content. Companies could also pay new certification fees and risk owing court costs if they unsuccessfully challenge a denied certification.

• Section 1 revises the definition of 'qualified production activities' in O.C.G.A. § 48-7-40.26(b)(11), removing laser discs and advertiser supported sites, and adding paid subscription platforms and FAST channels while excluding social-media-only user-generated content.
• Section 2 requires the Department of Economic Development's certification rules to address application deadlines, qualifying content types and distribution methods, application procedures, documentation, and fees.
• Section 2 also authorizes the department to charge reasonable certification fees, deposited into the state general fund.
• Section 2 further provides that if the department wins an appeal over a denied certification, the production company must pay the litigation's court costs.
• Section 3 sets the effective date as January 1, 2026, applicable to taxable years beginning on or after that date.

1. 2025-05-12Effective Date 2026-01-01
2. 2025-05-12Act 124
3. 2025-05-12House Date Signed by Governor (Cámara de Representantes)
4. 2025-04-07House Sent to Governor (Cámara de Representantes)
5. 2025-03-27House Agreed Senate Amend or Sub (Cámara de Representantes)
6. 2025-03-25Senate Passed/Adopted As Amended (Senado)
7. 2025-03-25Senate Third Read (Senado)
8. 2025-03-18Senate Read Second Time (Senado)

• Matthew Gambill (R, HD-015)Patrocinador principal
• Lauren McDonald (R, HD-026)
• Will Wade (R, HD-009)
• Soo Hong (R, HD-103)
• Shaw Blackmon (R, HD-146)
• Kasey Carpenter (R, HD-004)
• Matt Brass (R, SD-006)

1. AprobadaVotación: Cámara de Representantes28 de febrero de 2025

   161 a favor, 2 en contra (7 sin votar, 10 ausentes)

   Passage: House Vote #115

2. RechazadaVotación: Senado25 de marzo de 2025

   3 a favor, 49 en contra (3 sin votar, 1 ausentes)

   Adoption Of Amendment #2 By The Senator From The 53rd: Senate Vote #284

3. AprobadaVotación: Senado25 de marzo de 2025

   49 a favor, 5 en contra (1 sin votar, 1 ausentes)

   Passage As Amended: Senate Vote #285

4. AprobadaVotación: Cámara de Representantes27 de marzo de 2025

   159 a favor, 2 en contra (3 sin votar, 16 ausentes)

   Agree To Senate Amendment: House Vote #330

• film tax credit
• Georgia production incentives
• entertainment industry regulation
• state tax policy
• streaming media