24 LC 50 0812
House Bill 1431
By: Representatives Greene of the 154
th
, Stephens of the 164
th
, Townsend of the 179
th
, Sainz
of the 180
th
, and Williams of the 168
th
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 48-7-40.26 of the Official Code of Georgia Annotated, relating to
1
tax credits for film, gaming, video, or digital production, so as to provide for an additional2
credit for certain qualified productions that are shot in certain rural counties; to require the3
publication of a list of such counties; to provide for an application requirement; to provide4
for related matters; to repeal 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 Annotated, relating to tax credits8
for film, gaming, video, or digital production, is amended by revising subsections (c) and (d)9
as follows: 10
"(c) For any production company or qualified interactive entertainment production11
company and its affiliates that invest in a state certified production approved by the12
Department of Economic Development and whose average annual total production13
expenditures in this state did not exceed $30 million for 2002, 2003, and 2004, there shall14
be allowed an income tax credit against the tax imposed under this article. The tax credit15
under this subsection shall be allowed if the base investment in this state equals or exceeds16
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$500,000.00 for qualified production activities, except that any qualified interactive
17
entertainment production company shall be allowed the tax credit under this subsection if18
the base investment in this state equals or exceeds $250,000.00 for qualified production19
activities on or after January 1, 2018, and shall be calculated as follows:20
(1) The production company or qualified interactive entertainment production company21
shall be allowed a tax credit equal to 20 percent of the base investment in this state; and22
(2)(A) The production company or qualified interactive entertainment production23
company shall be allowed an additional tax credit equal to 10 percent of such base24
investment if the qualified production activity includes a qualified Georgia promotion. 25
Such additional tax credit shall be allowed for any qualified production that includes26
a qualified Georgia promotion upon its release to the general public. In lieu of the27
inclusion of the Georgia promotional logo, the production company or qualified28
interactive entertainment production company may offer alternative marketing29
opportunities to be evaluated by the Department of Economic Development to ensure30
that they offer equal or greater promotional value to the State of Georgia. The31
Department of Economic Development shall electronically certify to the Department32
of Revenue when the requirements of this paragraph and paragraph (2) of subsection33
(d) of this Code section have been met.34
(B) The Department of Economic Development shall prepare an annual report detailing35
the marketing opportunities it has approved under the provisions of subparagraph (A)36
of this paragraph. The report shall include, but not be limited to:37
(i) The goals and strategy behind each marketing opportunity approved pursuant to38
the provisions of subparagraph (A) of this paragraph;39
(ii) The names of all production companies approved by the Department of Economic40
Development to provide alternative marketing opportunities;41
(iii) The estimated value to the state of each approved alternative marketing42
opportunity compared to the estimated value of the Georgia promotional logo; and43
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(iv) The names of all production companies who chose to include the Georgia
44
promotional logo in their final production instead of offering the state an alternative45
marketing proposal.46
The report required under this paragraph shall be completed no later than January 1 of47
each year and presented to each member of the House Committee on Ways and Means,48
the Senate Finance Committee, the Senate Economic Development and Tourism49
Committee, the House Committee on Economic Development and Tourism, and the50
Governor.51
(C) The additional percentage of tax credit allowed by this paragraph and by paragraph52
(2) of subsection (d) of this Code section shall not be allowed to a production company53
for any qualified production activity or state certified production that has not been54
commercially distributed in multiple markets.55
(D) The additional percentage of tax credit that is allowed by this paragraph and by56
paragraph (2) of subsection (d) of this Code section shall not be issued final57
certification pursuant to subsection (l) of this Code section unless and until the state58
certified production has been commercially distributed in multiple markets within five59
years of the date that the project was first certified by the Department of Economic60
Development.61
(3) For taxable years beginning on or after January 1, 2024, and ending on or before
62
December 31, 2029, the production company or qualified interactive entertainment63
production company shall be allowed an additional tax credit equal to 5 percent of such64
base investment if 60 percent or more of the total photography days of the state certified65
production occur in one or more counties in this state that individually have a population66
of less than 100,000 with 10 percent or more of such population living in poverty based67
upon the most recent, reliable, and applicable data published by the United States Bureau68
of the Census. On or before December 31 of each year, the commissioner of the69
Department of Community Affairs shall publish a list of such counties.70
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(3)(4) The base investment and the amount of the credit allowed by this subsection and71
by subsection (d) of this Code section with respect to a production company shall be72
subject to the limitations of and any reductions required by subsection (l) of this Code73
section.74
(d) For any production company or qualified interactive entertainment production75
company and its affiliates that invest in a state certified production approved by the76
Department of Economic Development and whose average annual total production77
expenditures in this state exceeded $30 million for 2002, 2003, and 2004, there shall be78
allowed an income tax credit against the tax imposed under this article. For purposes of79
this subsection, the excess base investment in this state is computed by taking the current80
year production expenditures in a state certified production and subtracting the average of81
the annual total production expenditures for 2002, 2003, and 2004. The tax credit shall be82
calculated as follows:83
(1) If the excess base investment in this state equals or exceeds $500,000.00, or84
$250,000.00 for qualified interactive entertainment production activities on or after85
January 1, 2018, the production company or qualified interactive entertainment86
production company and its affiliates shall be allowed a tax credit of 20 percent of such87
excess base investment; and88
(2)(A) The production company or qualified interactive entertainment production89
company and its affiliates shall be allowed an additional tax credit equal to 10 percent90
of the excess base investment if the qualified production activities include a qualified91
Georgia promotion. Such additional tax credit shall be allowed for any qualified92
production that includes a qualified Georgia promotion upon its release to the general93
public. In lieu of the inclusion of the Georgia promotional logo, the production94
company or qualified interactive entertainment production company may offer95
marketing opportunities to be evaluated by the Department of Economic Development96
to ensure that they offer equal or greater promotional value to the State of Georgia.97
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(B) The Department of Economic Development shall prepare an annual report detailing
98
the marketing opportunities it has approved under the provisions of subparagraph (A)99
of this paragraph. The report shall include, but not be limited to:100
(i) The goals and strategy behind each marketing opportunity approved pursuant to101
the provisions of subparagraph (A) of this paragraph;102
(ii) The names of all production companies approved by the Department of Economic103
Development to provide alternative marketing opportunities;104
(iii) The estimated value to the state of each approved alternative marketing105
opportunity compared to the estimated value of the Georgia promotional logo; and106
(iv) The names of all production companies who chose to include the Georgia107
promotional logo in their final production instead of offering the state an alternative108
marketing proposal.109
The report required under this paragraph shall be completed no later than January 1 of110
each year and presented to each member of the House Committee on Ways and Means,111
the Senate Finance Committee, the Senate Economic Development and Tourism112
Committee, the House Committee on Economic Development and Tourism, and the113
Governor.114
(3) For taxable years beginning on or after January 1, 2024, and ending on or before
115
December 31, 2029, the production company or qualified interactive entertainment116
production company shall be allowed an additional tax credit equal to 5 percent of such117
base investment if 60 percent or more of the total photography days of the state certified118
production occur in one or more counties in this state that individually have a119
population of less than 100,000 with 10 percent or more of such population living in120
poverty based upon the most recent, reliable, and applicable data published by the121
United States Bureau of the Census. On or before December 31 of each year, the122
commissioner of the Department of Community Affairs shall publish a list of such123
counties."124
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SECTION 2.
125
Said Code section is further amended in paragraph (2) of subsection (h.1) by redesignating126
subparagraphs (I) and (J) as (J) and (K), respectively, and by adding a new subparagraph (I)127
to read as follows:128
"(I) For any projects certified by the Department of Economic Development on or after
129
January 1, 2024, for which the tax credits sought include the additional credit allowed130
pursuant to paragraph (3) of subsection (c) of this Code section or paragraph (3) of131
subsection (d) of this Code section, a description of the status of satisfying the132
requirements of such paragraphs;"133
SECTION 3.134
All laws and parts of laws in conflict with this Act are repealed.135
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