Georgia 2023-2024 Regular Session

Georgia House Bill HB489 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	23 LC 43 2658
2	2	H. B. 489
3	3	- 1 -
4	4	House Bill 489
5	5	By: Representatives Horner of the 3
6	6	rd
7	7	, Dunahoo of the 31
8	8	st
9	9	, and Clark of the 100
10	10	th
11	11
12	12	A BILL TO BE ENTITLED
13	13	AN ACT
14	14	To amend Code Section 48-7-40.26 of the Official Code of Georgia Annotated, the "Georgia
15	15	1
16	16	Entertainment Industry Investment Act," so as to provide for an aggregate annual limit; to2
17	17	require annual performance audits; to require waiving of taxpayer confidentiality as a3
18	18	condition of the tax credit; to publish certain information in each performance audit; to4
19	19	prohibit the transfer, sale, or assignment of certain tax credits on or after a certain date; to5
20	20	provide for related matters; to repeal conflicting laws; and for other purposes.6
21	21	BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7
22	22	SECTION 1.8
23	23	Code Section 48-7-40.26 of the Official Code of Georgia Annotated, the "Georgia9
24	24	Entertainment Industry Investment Act," is amended by adding two new subsections and10
25	25	revising subsection (g) as follows:11
26	26	"(c.1) On and after January 1, 2024, the tax credit allowed to production companies shall
27	27	12
28	28	be subject to an aggregate annual limit of $190 million. The commissioner shall determine13
29	29	whether the total amount of credits that would be claimed for a calendar year would exceed14
30	30	the annual limit for such year. In such cases, the commissioner shall prorate the total15 23 LC 43 2658
31	31	H. B. 489
32	32	- 2 -
33	33	credits allowed among all credits claimed on a percentage basis and reduce the total credits16
34	34	allowed for each state certified production by such percentage.17
35	35	(c.2)(1) By January 1, 2024, and annually thereafter, the state auditor shall conduct18
36	36	performance audits of the tax credits allowed by this Code section and publish such audits19
37	37	on its website.20
38	38	(2) For all projects certified as state certified productions on or after July 1, 2023, as a21
39	39	condition of obtaining status as a state certified production, the production company, its22
40	40	affiliates, and all associate loan-out companies shall expressly waive taxpayer23
41	41	confidentiality to the full extent necessary to effectuate this subsection.24
42	42	(3) For all projects certified as state certified productions on or after July 1, 2023,25
43	43	notwithstanding any provision of Code Section 48-2-15, 48-7-60, 48-7-61, or this Code26
44	44	section, the commissioner shall provide all tax information requested by the state auditor27
45	45	for conducting such performance audits and the state auditor shall include within the28
46	46	audits:29
47	47	(A) A current list of all production companies and their affiliates, all loan-out30
48	48	companies, and each state certified production;31
49	49	(B) The total amount of tax credits claimed or remaining for each year; and32
50	50	(C) A complete copy of each audit conducted pursuant to subsection (l) of this Code33
51	51	section, including, but not limited to, a list of all expenses allowed for the credit under34
52	52	this Code section."35
53	53	"(g) Any tax credits with respect to a state certified production earned by a production36
54	54	company or qualified interactive entertainment production company and previously37
55	55	claimed but not used by such production company or qualified interactive entertainment38
56	56	production company against its income tax may be transferred or sold in whole or in part39
57	57	by such production company or qualified interactive entertainment production company40
58	58	to another Georgia taxpayer, subject to the following conditions:41 23 LC 43 2658
59	59	H. B. 489
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61	61	(1) Such production company or qualified interactive entertainment production company
62	62	42
63	63	may make only a single transfer or sale of tax credits earned in a taxable year; however,43
64	64	the transfer or sale may involve one or more transferees;44
65	65	(2) Such production company or qualified interactive entertainment production company45
66	66	shall submit to the Department of Economic Development and to the Department of46
67	67	Revenue a written notification of any transfer or sale of tax credits within 30 days after47
68	68	the transfer or sale of such tax credits. The notification shall include such production48
69	69	company's or qualified interactive entertainment production company's tax credit balance49
70	70	prior to transfer, the credit certificate number, the remaining balance after transfer, all tax50
71	71	identification numbers for each transferee, the date of transfer, the amount transferred,51
72	72	and any other information required by the Department of Economic Development or the52
73	73	Department of Revenue;53
74	74	(3) Failure to comply with this subsection shall result in the disallowance of the tax54
75	75	credit until the production company or qualified interactive entertainment production55
76	76	company is in full compliance;56
77	77	(4) The transfer or sale of this tax credit does not extend the time in which such tax credit57
78	78	can be used. The carry-forward period for a tax credit that is transferred or sold shall58
79	79	begin on the date on which the tax credit was originally earned or for a tax credit subject59
80	80	to the provisions of subsection (l) of this Code section, the date on which the final60
81	81	certification for such tax credit was issued pursuant to said subsection;61
82	82	(5) A transferee shall have only such rights to claim and use the tax credit that were62
83	83	available to such production company or qualified interactive entertainment production63
84	84	company at the time of the transfer, except for the use of the credit in paragraph (1) of64
85	85	subsection (f) of this Code section. To the extent that such production company or65
86	86	qualified interactive entertainment production company did not have rights to claim or66
87	87	use the tax credit at the time of the transfer, the Department of Revenue shall either67
88	88	disallow the tax credit claimed by the transferee or recapture the tax credit from the68 23 LC 43 2658
89	89	H. B. 489
90	90	- 4 -
91	91	transferee; provided, however, that the Department of Revenue shall not recapture a tax
92	92	69
93	93	credit from the transferee if the tax credit was issued a valid final certification pursuant70
94	94	to subsection (l) of this Code section. The transferee's recourse is against such production71
95	95	company or qualified interactive entertainment production company; and
96	96	72
97	97	(6) The transferee must acquire the tax credits in this Code section for a minimum of 6073
98	98	percent of the amount of the tax credits so transferred; and74
99	99	(7) On and after July 1, 2024, no tax credit earned, allowed, or claimed pursuant to this75
100	100	Code section shall be transferred, sold, or assigned."76
101	101	SECTION 2.77
102	102	All laws and parts of laws in conflict with this Act are repealed. 78