23 LC 43 2655
H. B. 393
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House Bill 393
By: Representatives Carpenter of the 4
th
, Sharper of the 177
th
, Seabaugh of the 34
th
, Bonner
of the 73
rd
, Gilliard of the 162
nd
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
1
income taxes, so as to provide for tax credits for certain contributions made by taxpayers to2
certain organizations investing in musical or theatrical performances or productions; to3
provide for definitions; to provide for limitations on the amount of tax credits allowed; to4
provide for terms and conditions; to provide for applications and certifications; to provide5
for the revocation of qualified status; to provide for audits; to provide for certain penalties;6
to require annual reporting; to provide for the discretion to refer certain acts to the Attorney7
General for investigation and prosecution; to provide for the promulgation of rules and8
regulations; to provide for a short title; to provide for related matters; to provide for an9
effective date and applicability; to repeal conflicting laws; and for other purposes.10
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
SECTION 1.12
This Act shall be known and may be cited as the "Georgia Music Investment Credit Act" or13
the "Georgia MIC Act."14 23 LC 43 2655
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SECTION 2.
15
Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,16
is amended by adding a new Code section to read as follows:17
"48-7-29.26.
18
(a) As used in this Code section, the term:19
(1) 'Musical or theatrical expenditures' means expenses incurred for a qualified music20
investment project, which shall include, but not be limited to, those expenses incurred for21
set construction and operation; wardrobe, makeup, accessories, and related services; costs22
associated with photography and sound synchronization; expenditures incurred with23
Georgia companies for sound recordings and musical compositions, excluding license24
fees; lighting and related services and materials; editing and related services; rental of25
facilities and equipment; leasing of vehicles; costs of food and lodging; total aggregate26
payroll; talent and producer fees; technical fees; crew fees; per diem costs paid to27
employees; airfare purchased through a Georgia travel agency or travel company;28
insurance and bonding costs incurred with a Georgia insurance agency; other direct costs29
of producing the project in accordance with generally accepted entertainment industry30
practices; and payments made to loan-out companies.31
(2) 'Musical or theatrical performance' means a live performance of a concert, musical32
or performing arts tour, ballet, dance, opera, live variety entertainment, or a series of any33
such performances that originates, is developed, and has at least one public performance34
before a live audience within this state, or that prepares and rehearses a minimum of five35
days within this state and has its United States debut within this state. Such term36
excludes a single musical performance that is not intended for touring, a music or cultural37
festival that is not intended for touring, an industry seminar, a trade show, or a market.38
(3) 'Qualified contributions' means the preapproved contribution of funds made during39
the taxable year by a taxpayer to a qualified music investment organization under the40
terms and conditions of this Code section.41 23 LC 43 2655
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(4) 'Qualified expenditures' means musical or theatrical expenditures made by a qualified42
music investment organization in support of a qualified music investment project in an43
amount per project not to exceed 30 percent of the total outside investment in the44
qualified music investment project.45
(5) 'Qualified music investment organization' means any domestic corporation which has46
been certified by the commissioner and the commissioner of the Department of Economic47
Development as having the primary function of supporting one or more qualified music48
investment projects.49
(6) 'Qualified music investment project' means any music investment project certified50
by the Department of Economic Development, which shall include musical or theatrical51
performances and recorded music scored for or synchronized with any movie, television52
show, music video, or interactive entertainment production, provided that such projects53
equal or exceed their respective spending thresholds using qualified expenditures, which54
are as follows:55
(A) Tour rehearsal and preproduction of musical or theatrical performances,56
$100,000.00;57
(B) Recorded music in a studio, $15,000.00; or58
(C) Recorded music scored for or synchronized with any movie, television show,59
music video, or interactive entertainment production, $25,000.00.60
(b)(1) The aggregate amount of tax credits allowed under this Code section shall not61
exceed:62
(A) For 2024, $7 million per year;63
(B) For 2025, $10 million per year;64
(C) For 2026 and 2027, $15 million; or65
(D) For 2028, $25 million.66
(2) Subject to the aggregate limit provided in paragraph (1) of this subsection and the67
limitations of subsection (b.1) of this Code section, each taxpayer shall be allowed a68 23 LC 43 2655
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credit against the tax imposed by this chapter for qualified contributions made by the69
taxpayer on or after January 1, 2024, as follows:70
(A) In the case of a single individual or a head of household, 70 percent of the actual71
amount of qualified contributions made or $2,500.00, whichever is less;72
(B) In the case of a married couple filing a joint return, 70 percent of the actual amount73
of qualified contributions made or $5,000.00, whichever is less;74
(C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph75
notwithstanding, in the case of an individual taxpayer who is a member of a limited76
liability company duly formed under state law, a shareholder of a Subchapter 'S'77
corporation, or a partner in a partnership, 70 percent of the actual amount of qualified78
contributions it made, or $5,000.00, whichever is less; provided, however, that tax79
credits pursuant to this paragraph shall only be allowed for the portion of the income80
on which such tax was actually paid by such member of the limited liability company,81
shareholder of a Subchapter 'S' corporation, or partner in a partnership; or82
(D) A corporation or other entity not provided for in subparagraphs (A) through (C)83
of this paragraph shall be allowed a credit against the tax imposed by this chapter for84
qualified contributions in an amount not to exceed 70 percent of the actual amount of85
qualified contributions made or 75 percent of such entity's income tax liability.86
(c) Not later than October 1, 2023, the commissioner shall establish a page on the87
department's website for the purpose of implementing this Code section. Such page shall88
contain, at a minimum:89
(1) A link to the Department of Economic Development's web based application for90
certification as a qualified music investment organization as provided for in91
subsection (d) of this Code section;92
(2) The current list of all qualified music investment organizations;93
(3) The total amount of tax credits remaining and available for preapproval for each year;94 23 LC 43 2655
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(4) A web based method for taxpayers seeking the preapproval status for contributions;95
and96
(5) The information received by the department from each qualified music investment97
organization pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv)98
of this Code section.99
(d)(1) The Department of Economic Development shall establish and maintain a web100
based application process for the purpose of certifying organizations as qualified music101
investment organizations. At a minimum, such application created by the Department of102
Economic Development shall include an agreement submitted by the applicant to fully103
comply with the terms and conditions of this Code section.104
(2) The Department of Economic Development shall certify any valid organization as105
a qualified music investment organization upon successful completion of such application106
process.107
(3) The Department of Economic Development shall accept a first round of applications108
for certification as qualified music investment organizations by October 1, 2023, and109
shall certify and notify such applicants of the Department of Economic Development's110
decision on or before November 30, 2023. Thereafter, the Department of Economic111
Development shall establish a process for rolling applications and certifications.112
(e)(1) Prior to making a contribution to any qualified music investment organization, the113
taxpayer shall electronically notify the department, in a manner specified by the114
commissioner, of the total amount of contribution that such taxpayer intends to make to115
such organization.116
(2) Within 30 days after receiving a request for preapproval of contributions, the117
commissioner shall preapprove, deny, or prorate requested amounts on a first come, first118
served basis and shall provide notice to such taxpayer and the qualified music investment119
organization of such preapproval, denial, or proration. Such notices shall not require any120
signed release or notarized approval by the taxpayer. The preapproval of contributions121 23 LC 43 2655
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by the commissioner shall be based solely on the availability of tax credits subject to the122
aggregate total limit established under paragraph (1) of subsection (b) of this Code123
section.124
(3) Within 60 days after receiving the preapproval notice issued by the commissioner125
pursuant to paragraph (2) of this subsection, the taxpayer shall contribute the preapproved126
amount to the qualified music investment organization or such preapproved contribution127
amount shall expire. The commissioner shall not include such expired amounts in128
determining the remaining amount available under the aggregate limit for the respective129
calendar year.130
(f)(1) Each qualified music investment organization shall issue to each contributor a131
letter of confirmation of contribution, which shall include the taxpayer's name, address,132
tax identification number, the amount of the qualified contribution, the date of the133
qualified contribution, and the total amount of the credit allowed to the taxpayer.134
(2) In order for a taxpayer to claim the tax credit allowed under this Code section, all135
such applicable letters as provided for in paragraph (1) of this subsection shall be attached136
to the taxpayer's tax return. When the taxpayer files an electronic return such137
confirmation shall only be required to be electronically attached to the return if the138
Internal Revenue Service allows such attachments to be affixed and transmitted to the139
department. In any such event, the taxpayer shall maintain such confirmation and such140
confirmation shall only be made available to the commissioner upon request.141
(3) The commissioner shall allow tax credits for any preapproved contributions made to142
an organization at the time the contributions were made if such organization was a143
qualified music investment organization at the time of the commissioner's preapproval144
of the contributions and the taxpayer has otherwise complied with this Code section.145
(g)(1) Each qualified music investment organization shall annually submit to the146
department no later than May 15 of each year:147 23 LC 43 2655
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(A) A complete copy of its IRS Form 990 including applicable attachments, or for any148
qualified music investment organization that is not required by federal law to file an149
IRS Form 990, such organization shall submit to the commissioner equivalent150
information on a form prescribed by the commissioner; and151
(B) A report detailing the contributions received during the calendar year pursuant to152
this Code section on a date determined by, and on a form provided by, the153
commissioner which shall include:154
(i) The total number and dollar value of individual contributions and tax credits155
approved. Individual contributions shall include contributions made by those filing156
income tax returns as a single individual or head of household and those filing joint157
returns;158
(ii) The total number and dollar value of corporate contributions and tax credits159
approved;160
(iii) The total number and dollar value of all qualified expenditures made; and161
(iv) A list of contributors, including the dollar value of each contribution and the162
dollar value of each approved tax credit.163
(2) Except for the information published in accordance with subsection (c) of this Code164
section, all information or reports relative to this Code section that were provided by165
qualified music investment organizations to the department shall be confidential taxpayer166
information, governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such167
information relates to the contributor or such qualified organization.168
(h) By April 1 of each year, each qualified music investment organization shall publicly169
post on its website in a prominent place a copy of its prior year's annual budget containing170
the total amount of funds received from all sources relative to the amount of qualified171
contributions it received and the total amount and a description of how such contributions172
were utilized.173 23 LC 43 2655
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(i)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified174
contributions to any particular purpose or for the direct benefit of any particular175
individual.176
(2) A taxpayer that operates, owns, or is a subsidiary of an association, organization, or177
other entity that contracts directly with a qualified music investment organization shall178
not be eligible for tax credits allowed under this Code section for contributions made to179
such qualified organization.180
(3) In soliciting contributions, no person shall represent or direct that, in exchange for181
making qualified contributions to any qualified music investment organization, a taxpayer182
shall receive any direct or particular benefit. The status as a qualified music investment183
organization shall be revoked for any organization determined to be in violation of this184
paragraph and shall not be renewed for at least two years.185
(j)(1) Each qualified music investment organization shall use at least 80 percent of the186
funds received by it from qualified contributions to make qualified expenditures. Each187
such qualified organization shall maintain accurate and current records of all expenditures188
of such funds and provide such records to the commissioner upon his or her request.189
(2) A qualified music investment organization that fails to comply with any of the190
requirements under this Code section shall be given written notice by the department of191
such failure to comply by certified mail and shall have 90 days from the receipt of such192
notice to correct all deficiencies.193
(3) Upon failure to correct all deficiencies within 90 days, the department shall revoke194
such organization's status as a qualified music investment organization and such entity195
shall be immediately removed from the department's list of organizations. All196
applications for preapproval of tax credits for contributions to such organization under197
this Code section made on or after the date of such removal shall be rejected.198
(4) Each such organization that has had its status revoked and has been delisted pursuant199
to this Code section, shall immediately cease all expenditures of funds received relative200 23 LC 43 2655
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to this Code section, and shall transfer all of such funds that are not yet expended, to a201
properly operating qualified music investment organization within 30 calendar days of202
its removal from the department's list of qualified music investment organizations.203
(k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount204
of qualified contributions that were utilized as deductions or exemptions from taxable205
income.206
(2) In no event shall the total amount of the tax credit under this Code section for a207
taxable year exceed the taxpayer's income tax liability. Any unused tax credit shall be208
allowed the taxpayer against the succeeding five years' tax liability. No such credit shall209
be allowed the taxpayer against prior years' tax liability.210
(l) The chairperson of the House Appropriations Committee and the chairperson of the211
Senate Committee on Appropriations shall have the authority to request an audit212
concerning this Code section as a whole or of any one or more qualified music investment213
organizations. The commissioner, the state auditor, and each qualified music investment214
organization, and the commissioner of the Department of Economic Development shall215
cooperate to the full extent necessary to conduct such audits.216
(m) At the discretion of the commissioner, any suspected misuse of funds contributed or217
expended pursuant to this Code section shall be forwarded to the Attorney General for218
investigation and prosecution.219
(n) The commissioner shall promulgate rules and regulations necessary to implement and220
administer the provisions of this Code section."221
SECTION 3.222
(a) This Act shall become effective on July 1, 2023.223
(b) This Act shall be applicable to taxable years beginning on or after January 1, 2024.224 23 LC 43 2655
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SECTION 4.
225
All laws and parts of laws in conflict with this Act are repealed.226