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