23 LC 43 2671
H. B. 548
- 1 -
House Bill 548
By: Representatives Schofield of the 63
rd
, Beverly of the 143
rd
, Gilliard of the 162
nd
, Scott
of the 76
th
, and Cannon of the 58
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 impose a fee on certain sales and transfers2
of tax credits; to require the submission of diversity plans in connection with new state3
certified productions; to provide that certain minimum conditions shall be met to obtain the4
tax credit; to provide for an additional 2 percent tax credit for state certified productions that5
meet or exceed certain expenditure and payroll requirements for members of a minority and6
minority business enterprises; to provide for accountability; to provide for an additional 27
percent tax credit for filming on location in certain blighted or distressed areas; to establish8
the Georgia Production Workforce Development Trust Fund and dedicate proceeds from the9
sale or transfer fee to such fund; to provide for compliance with constitutional requirements;10
to provide for an effective date and automatic repeal; to provide for definitions; to provide11
for related matters; to repeal conflicting laws; and for other purposes.12
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:13 23 LC 43 2671
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SECTION 1.
14
Code Section 48-7-40.26 of the Official Code of Georgia Annotated, the "Georgia15
Entertainment Industry Investment Act," is amended in subsection (b) by adding two new16
paragraphs to read as follows:17
"(4.1) 'Member of a minority' means an individual who is:
18
(A) Black;19
(B) Hispanic;20
(C) Asian Pacific American;21
(D) Native American; or22
(E) Asian Indian American.23
(4.2) 'Minority business enterprise' means any business owned by:24
(A) An individual who is a member of a minority who reports as his or her personal25
income for Georgia income tax purposes the income of such business;26
(B) A partnership in which a majority of the ownership interest is owned by one or27
more members of a minority who report as their personal income for Georgia income28
tax purposes more than 50 percent of the income of the partnership; or29
(C) A corporation organized under the laws of this state in which a majority of the30
common stock is owned by one or more members of a minority who report as their31
personal income for Georgia income tax purposes more than 50 percent of the32
distributed earnings of the corporation."33
SECTION 2.34
Said Code section is further amended in subsection (g) by revising paragraph (2) as follows:35
"(2)(A) Such production company or qualified interactive entertainment production36
company shall submit to the Department of Economic Development and to the37
Department of Revenue a written notification of any transfer or sale of tax credits38
within 30 days after the transfer or sale of such tax credits. The notification shall39 23 LC 43 2671
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include such production company's or qualified interactive entertainment production
40
company's tax credit balance prior to transfer, the credit certificate number, the41
remaining balance after transfer, all tax identification numbers for each transferee, the42
date of transfer, the amount transferred, and any other information required by the43
Department of Economic Development or the Department of Revenue; and
44
(B) On and after July 1, 2023, the notification required by subparagraph (A) of this45
paragraph shall also include a fee, which shall be imposed upon each such transfer or46
sale of tax credits, in the amount of 1 percent of the total credits sold or transferred,47
and collected by the state revenue commissioner and remitted to the general fund of the48
state treasury;49
SECTION 3.50
Said Code section is further amended in paragraph (4) of subsection (l) by adding a new51
subparagraph to read as follows:52
"(E.1) Determine whether the diversity plan required by subsection (m) of this Code53
section was properly filed and followed for the state certified production, and, if54
applicable, whether the conditions for the additional tax credit allowed by55
subsection (n) of this Code section were duly satisfied."56
SECTION 4.57
Said Code section is further amended by adding four new subsections to read as follows:58
"(m) For productions first approved as state certified productions by the Department of59
Economic Development on or after July 1, 2023, a production company shall not be60
eligible to claim a tax credit allowed pursuant to this Code section for a state certified61
production unless:62
(1) The production company has filed with the Department of Revenue and the63
Department of Economic Development, within three months of incurring its first64 23 LC 43 2671
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expenses for qualified production activities, a diversity plan that outlines specific goals65
and strategies for both the company and its affiliates for ensuring that its workforce for66
the state certified production reflects the diversity of this state such that minorities and67
minority business enterprises are employed or contracted with at levels sufficient to68
represent equitable participation among the qualified production activities claimed for69
such state certified production; and70
(2) The Department of Revenue has approved such diversity plan provided for in71
paragraph (1) of this subsection as meeting the requirements for diversity plans72
established by the department and verified that the production company met its goals, or73
that the production company made good faith efforts to meet such goals.74
(n)(1) For productions first approved as state certified productions by the Department75
of Economic Development on or after July 1, 2023:76
(A) At least 15 percent of the total employees hired or businesses contracted with for77
each production shall be members of a minority or shall be minority business78
enterprises and at least 15 percent of the total payroll for all employees for each79
production, including pay to loan-out companies and pay for all above-the-line and80
below-the-line employees, shall be paid to such members of a minority or minority81
business enterprises; and82
(B) Each production company shall be allowed an additional tax credit equal to 283
percent of its base investment; provided, however, that at least 30 percent of the total84
employees hired or businesses contracted with for such production are members of a85
minority or are minority business enterprises and at least 30 percent of the total payroll86
for all employees, including pay to loan-out companies and pay for all above-the-line87
and below-the-line employees, is paid to such members of a minority or minority88
business enterprises.89
(2) To be eligible for the additional credit allowed by subparagraph (B) of paragraph (1)90
of this subsection, a production company shall state in its diversity plan submitted91 23 LC 43 2671
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pursuant to subsection (m) of this Code section that it intends to obtain the additional92
credit allowed by subparagraph (B) of paragraph (1) of this subsection and that it will93
provide such records as the department determines are necessary to establish that the94
conditions for such additional credit have been met or exceeded.95
(o)(1) For productions first approved as state certified productions by the Department96
of Economic Development on or after July 1, 2023, a production company shall be97
allowed an additional tax credit equal to 2 percent of its base investment; provided,98
however, that at least 15 percent of the total number of days of filming in Georgia occur99
on-location in census tracts which the commissioner of the Department of Community100
Affairs has identified as blighted or distressed areas as such term is defined in Code101
Section 36-44-3.102
(2) To be eligible for the additional credit allowed by paragraph (1) of this subsection,103
a production company shall create a film location plan that states how it intends to obtain104
the additional credit allowed by paragraph (1) of this subsection and that it will provide105
such records as the department determines are necessary to establish that the conditions106
for such additional credit have been met or exceeded.107
(p)(1)(A) There shall be established a Georgia Production Workforce Development108
Trust Fund as a separate fund in the state treasury. The Commissioner of Labor shall109
be the trustee of such fund.110
(B) The state treasurer shall invest the money held in the fund in the same manner in111
which state funds are invested as authorized by the State Depository Board pursuant to112
Article 3 of Chapter 17 of Title 50. Interest earned by the money held in the trust fund113
shall be accounted for separately and shall be credited to the trust fund to be disbursed114
as other moneys in the trust fund.115
(2) Under the authority granted and subject to the conditions imposed by Article III,116
Section IX, Paragraph VI(r) of the Constitution of Georgia, for the period beginning on117
July 1, 2023, and ending on June 30, 2033, all moneys collected pursuant to118 23 LC 43 2671
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paragraph (1) of subsection (g) of this Code section shall be annually appropriated to the119
Georgia Production Workforce Development Trust Fund established by this subsection120
and such funds shall not lapse as otherwise required by Article III, Section IX, Paragraph121
IV(c) of the Constitution of Georgia. Each annual appropriation shall be made through122
the General Appropriations Act and shall include all of moneys collected from such123
sources during the most recently completed fiscal year.124
(3) All moneys appropriated to the Georgia Production Workforce Development Trust125
Fund pursuant to paragraph (2) of this subsection shall be dedicated for use and expended126
by the Commissioner of Labor to train Georgia residents for jobs in the film industry,127
provided that at least 50 percent of such funds shall be allocated to train members of a128
minority and at least 50 percent of all private training programs or organizations utilized129
shall be minority business enterprises.130
(4) The Commissioner of Labor shall prepare an accounting of the funds expended131
pursuant to this subsection during the most recently completed fiscal year to be provided132
to the Office of Planning and Budget, the House Budget and Research Office, and the133
Senate Budget and Evaluation Office by January 1 of each year."134
SECTION 5.135
In accordance with the requirements of Article III, Section IX, Paragraph VI(r) of the136
Constitution of Georgia, this Act shall not become law and shall stand automatically repealed137
if it does not receive the requisite two-thirds' majority vote in both the Senate and the House138
of Representatives or the amount of the funds dedicated by this Act would cause the total139
amount appropriated pursuant to such constitutional provision to equal or exceed 1 percent140
of the previous fiscal year's state revenues subject to appropriations.141 23 LC 43 2671
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SECTION 6.
142
Except as provided for in Section 5 of this Act, this Act shall become effective on July 1,143
2023.144
SECTION 7.145
All laws and parts of laws in conflict with this Act are repealed.146