As the demand for location shoots increases due to the pumping streaming content production line, more and more states are hoping to net themselves a share of that revenue pie. In a bid to keep their film and TV production tax credits competitive in this evolving landscape, the Georgia Senate has made significant changes to its proposed House Bill 1180- all in favor of the productions they are hoping will film there. Our Blake & Wang P.A. entertainment attorney, Brandon Blake, unpacks the full details of the proposed changes.
Significant Cap Changes
One sticking point for the entertainment industry so far has been the annual limit on tax credit transfers. This has subsequently been lowered in the Senate version to 2.3% of the state budget (roughly $830M), compared to the 2.5%/$900M initial proposition the House saw. However, some attractive exemptions have rendered that cap near-meaningless.
Key changes include removing productions shot at Georgia’s biggest studios from the cap. This covers investments over $100M within the 2023-2027 production period and will cover about 1.5M square feet of sound stage space. This will particularly impact Marvel, as well as other big franchises filming in the area. Smaller studios are exempt from this unless they are both in rural areas and outside the wider Atlanta metro area.
Further Positive Changes
The revised bill also offers hundreds of millions worth of potential tax credits that will impact the cap, rendering it almost irrelevant to the wider decision to film in the area. The Rules Committee can change the Bill, however, with the end of the session looming, it will need to be handled swiftly or the bill risks lapsing into obscurity. It is expected to be signed by Thursday.
Some players within the industry would rather see the bill fall away entirely. Georgia has become something of a filming hub thanks to its previously generous tax credit regime. The bill, which aims to make their annual budgetary expenditure more predictable, directly impacts the transfer/sale of tax credits. However, should the Bill pass the House, it will certainly be an improvement on the earlier offering.
Film and Television 