Georgia post-production entertainment tax credit clears Senate

The Georgia Entertainment Industry Post-production Investment Act passed the Senate late March 22.

The bill, HB 199, passed 46-4. It cleared the Georgia House of Representatives Feb. 24 with a 158-3 vote.

Georgia’s current film tax credit already covers post-production for film and television projects that spend at least $500,000 in the state, but many choose to forgo taking advantage of this because they prefer to go home to New York or Los Angeles to edit and finish the film. This new bill aims to capture some of those lost dollars in Georgia.

The bill would provide a 20 percent tax credit for post-production companies with at least a $250,000 payroll in Georgia. These companies must also spend at least $500,000 per tax year. If the production is created exclusively in Georgia, the companies are eligible to receive up to 30 percent of what they spend back in transferable tax credits that can then be sold on the free market. Film tax credits in Georgia are currently going for over 90 cents on the dollar.

Proving post-production has been completed in a certain location is more complicated than providing proof a movie or TV show has filmed somewhere, because post-production work can be done anywhere with the right computers and technology. Other states with tax incentives catering to post-production reportedly have encountered fraud after post-production work was completed in a different location and passed off as if it was filmed in the state offering the credit.

If the bill is enacted, it would be capped at $5 million this year, $10 million next year and $15 million from 2019 through 2022. No company can receive more than 20 percent of the total statewide credit available in a given year.