A Georgia state House group approved a law in February 2024 to make changes to the state's popular movie tax credit. House Bill 1180 says movie companies must meet 4 out of 10 specific requirements to get an extra 10% tax credit on top of the 20% they already get.
Under the bill, film production companies must meet at least four of the following criteria to qualify for the most lucrative tax credit:
At least 50% of the crew on a given film production working in the state must be Georgia residents.
At least 50% of the vendors providing goods or services to film production crews must be Georgia vendors.
The film production company must spend at least $30 million in Georgia.
At least 50% of a production’s photography days must occur in one or more rural counties in Georgia.
At least 50% of the photography days in studio facilities must take place in Georgia studios, or the company must make capital improvements to a studio.
At least 50% of the photography days in studio facilities must take place in Georgia studios, or the company must enter into a long-term lease for a studio in Georgia.
At least 20% of a company’s post-production spending must be with Georgia vendors.
The company must participate in at least one Georgia workforce development program.
The company must include the Georgia promotional logo in its final production or engage in alternative marketing opportunities approved by the state Department of Economic Development.
The bill also doubles the amount a production company must spend on a single production to qualify for the tax credit from $500,000 to $1 million.
This was decided back in 2008. The movie tax credit helped Georgia's economy a lot, bringing in $8.55 billion in 2022. However, it also means Georgia loses about $1 billion in taxes each year, making it the state's costliest tax break. Rep. Kasey Carpenter, who supports the bill, wants to help Georgia musicians get their music in movies more often. Jill Helton, from Pigmental Studios, worries that a new rule limiting how much tax credit can be sold or transferred each year will push independent filmmakers out of Georgia. But, Carpenter believes lowering the spending requirement for the tax credit to $500,000 from $1 million will help smaller movies, including independent ones. Chairman Bruce Williamson said these changes wouldn't happen right away since the law would start in 2026. The bill is now going to the state Senate for further discussion.
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