ATLANTA — As the state of Georgia continues to lead in the space of high-dollar film production, lawmakers are now demanding that those filmmakers meet four out of nine goals before being able to qualify to receive state tax credits.
In a news conference Wednesday, legislative leaders said they want companies to meet four of nine goals to receive the top 30% credit on Georgia income taxes. House Ways and Means Committee Chairman Shaw Blackmon said that would include things such as shooting in rural Georgia, hiring more Georgia workers, and supporting production studios in the state.
“We’re certainly not limiting the credit at all,” Blackmon, a Bonaire Republican, told reporters after the news conference. “I think what we’re trying to do is provide more value and a better return on investment for the taxpayers and sustain the credits at the same time, so that industry has an opportunity to continue to thrive.”
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Some of the biggest films and shows of the past decade have been shot in the state, from popular Netflix shows Stranger Things and Ozark to scenes in a variety of Marvel productions, Star Wars, the Walking Dead and so much more.
The announcements are a relatively modest outcome of the review, which Republican Lt. Gov. Burt Jones touts as a way to shore up tax revenue so that Georgia could further cut its income tax rate for all residents and businesses.
There had been talk of capping the number of film tax credits Georgia would issue in a year — the state is projected to give out $1.35 billion in credits this year alone and is one of six states without a cap. But industry groups lined up at hearings over the summer to defend the breaks as spurring economic activity, and House lawmakers have been more likely to defend the tax breaks.
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The film tax credit has spurred a big increase in movies and TV shows made in Georgia, but state-sponsored evaluations show the credit’s cost outweighs its economic benefit. A study last year by Georgia State University suggested the state saw a return of less than 20 cents on the dollar.
According to the report, only $290.4 million is expected to be generated in 2024, compared to the tax expenditure for Georgia residents.
Based on the audit, the value of the revenue generated is only about 27% of the amount it’ll cost taxpayers.
Any production company can claim credits once they spend $500,000 on films, television shows, commercials or music videos distributed outside the state. Credits start at 20% of production spending but rise to 30% if a movie or television show displays Georgia’s peach logo. The bill would raise this threshold to $1 million.
The credits can only be used to reduce outstanding state income taxes owed, and can’t be redeemed for cash. However, the credits are transferrable — production companies can sell them to any individual or business with state income tax liability.
Over the next four fiscal years, the audit estimated that claimed tax credits from the Georgia Film Tax Credit would increase to $1.28 billion by 2028.
The state of Georgia maintains a list of productions filmed in Georgia and others that are currently underway.
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