Georgia 2025-2026 Regular Session

Georgia House Bill HB655 Compare Versions

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

Old	New	Differences
1	1	25 LC 50 1181
2	2	House Bill 655
3	3	By: Representatives Hilton of the 48
4	4	th
5	5	, Burchett of the 176
6	6	th
7	7	, Clark of the 100
8	8	th
9	9	, Carpenter of
10	10	the 4
11	11	th
12	12	, Sainz of the 180
13	13	th
14	14	, and others
15	15	A BILL TO BE ENTITLED
16	16	AN ACT
17	17	To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
18	18	1
19	19	relating to imposition, rate, computation, exemptions, and credits for income taxes, so as to2
20	20	renew a tax credit for postproduction expenditures; to increase the annual aggregate limit;3
21	21	to provide for an additional credit if certain qualified expenditures are incurred in certain4
22	22	rural counties; to provide for qualified productions and expenditures; to allow the credit with5
23	23	respect to special venue projects; to provide for related matters; to provide for an effective6
24	24	date and applicability; to repeal conflicting laws; and for other purposes.7
25	25	BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
26	26	SECTION 1.9
27	27	Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to10
28	28	imposition, rate, computation, exemptions, and credits for income taxes, is amended in Code11
29	29	Section 48-7-40.26A, relating to tax credits for postproduction expenditures, by revising12
30	30	paragraphs (5) and (6) of subsection (b) and subsections (d) and (f) and by adding a new13
31	31	subsection to read as follows:14
32	32	"(5) 'Qualified postproduction expenditures' means expenditures incurred in this state15
33	33	directly in qualified postproduction activities, including without limitation the following:16
34	34	H. B. 655
35	35	- 1 - 25 LC 50 1181
36	36	(A) Costs associated with photography and sound synchronization;
37	37	17
38	38	(B) Expenditures, excluding license fees, incurred with Georgia companies for sound18
39	39	recordings and musical compositions, lighting, and related services and materials;19
40	40	(C) Editing and related services;20
41	41	(D) Rental of facilities and equipment;21
42	42	(E) Leasing of vehicles;22
43	43	(F) Costs of food and lodging;23
44	44	(G) Digital or tape editing, film processing, transfers of film to tape or digital format,24
45	45	sound mixing, computer graphics services, special
46	46	visual effects services, and25
47	47	animation services;26
48	48	(H) Total aggregate payroll;27
49	49	(I) Airfare, if purchased through a Georgia travel agency or travel company;28
50	50	(J) Insurance costs and bonding, if purchased through a Georgia insurance agency; and29
51	51	(K) Other direct postproduction costs for the project in accordance with generally30
52	52	accepted entertainment industry practices.31
53	53	This Such term includes expenditures incurred in this state for footage shot with respect32
54	54	to a qualified production shot, recorded, or originally created inside this state or outside33
55	55	this state.34
56	56	(6) 'Qualified production' means a film, video, or digital project, including only the35
57	57	following: feature films, series, pilots, movies for television, televised commercial36
58	58	advertisements, music videos, interactive entertainment, special venue projects, or sound37
59	59	recording projects used in feature films, series, pilots, or movies for television. This Such38
60	60	term shall include projects shot, recorded, or originally created, whether inside this state39
61	61	or outside this state, in either short or long form, animation and music, fixed on a delivery40
62	62	system which includes without limitation film, videotape, computer disc, laser disc, and41
63	63	any element of the digital domain, from which the program is viewed or reproduced, and42
64	64	which is intended for multimarket commercial distribution via theaters, special venues,43
65	65	H. B. 655
66	66	- 2 - 25 LC 50 1181
67	67	video on demand, direct to DVD, digital platforms designed for the distribution of
68	68	44
69	69	interactive games, licensing for exhibition by individual television stations, groups of45
70	70	stations, networks, advertiser supported sites, cable television stations, or public46
71	71	broadcasting stations. Such term shall not include the coverage of news and athletic47
72	72	events, local interest programming, instructional videos, and corporate videos."48
73	73	"(c.2) A postproduction company allowed a tax credit pursuant to subsection (c) or (c.1)
74	74	49
75	75	of this Code section shall be allowed an additional tax credit equal to 5 percent of the50
76	76	qualified postproduction expenditures actually invested and expended by the51
77	77	postproduction company in a taxable year if $250,000.00 or more of the qualified52
78	78	postproduction expenditures are incurred in one or more counties in this state that53
79	79	individually have a population of less than 100,000 with 10 percent or more of such54
80	80	population living in poverty based upon the most recent, reliable, and applicable data55
81	81	published by the United States Bureau of the Census. On or before December 31 of each56
82	82	year, the commissioner of community affairs shall publish a list of such counties.57
83	83	(d) The tax credits allowed under this Code section for all postproduction companies shall58
84	84	be subject to the following aggregate annual caps:59
85	85	(1) For taxable years beginning on or after January 1, 2018 2026, and before January 1,60
86	86	2019 2031, the aggregate amount of tax credits allowed under this Code section shall not61
87	87	exceed $10 $60 million per year;62
88	88	(2) For taxable years beginning on or after January 1, 2019, and before January 1, 2020,63
89	89	the aggregate amount of tax credits allowed under this Code section shall not exceed $1064
90	90	million;65
91	91	(3) For taxable years beginning on or after January 1, 2020, and before January 1, 2023,66
92	92	the aggregate amount of tax credits allowed under this Code section shall not exceed $1067
93	93	million per year;68
94	94	(4) The tax credits allowed under this Code section shall not be available for taxable69
95	95	years beginning on or after January 1, 2023; and70
96	96	H. B. 655
97	97	- 3 - 25 LC 50 1181
98	98	(5) If; provided, however, that, if the aggregate amount of tax credits claimed by71
99	99	taxpayers under this Code section during a year is less than the aggregate annual cap72
100	100	applicable to such year, the unclaimed portion of the aggregate annual cap shall be added73
101	101	to the aggregate annual cap applicable to the next succeeding year or years until it is fully74
102	102	claimed."75
103	103	"(f) For taxable years beginning on or after January 1, 2018 2026, and before January 1,76
104	104	2023 2031, the postproduction company shall report to the Department of Revenue on its77
105	105	Georgia income tax return the monthly average number of full-time employees subject to78
106	106	Georgia income tax withholding for the taxable year. As used in For purposes of this79
107	107	subsection, the term 'full-time employee' shall mean means a person who performs a job80
108	108	that requires a minimum of 35 hours a per week, and pays at or above the average wage81
109	109	earned in the county with the lowest average wage earned in this state, as reported in the82
110	110	most recently available annual issue of the Georgia Employment and Wages Averages83
111	111	Report of the Department of Labor. Notwithstanding Code Sections 48-2-15, 48-7-60, and84
112	112	48-7-61, for such taxable years, the commissioner shall annually report to the House85
113	113	Committee on Ways and Means and the Senate Finance Committee. The report shall86
114	114	include the name, tax year beginning, and monthly average number of full-time employees87
115	115	for each postproduction company. The first report shall be submitted annually by June 30,88
116	116	2018, and each year thereafter by June 30."89
117	117	SECTION 2.90
118	118	This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years91
119	119	beginning on or after January 1, 2026.92
120	120	SECTION 3.93
121	121	All laws and parts of laws in conflict with this Act are repealed.94
122	122	H. B. 655
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