House Bill 199 cleared the Senate 38-17, pushing toward the expansion of the credit to post production work and sending the bill to Governor Nathan Deal to sign.
This bill would provide a 20 percent tax credit for the post production companies who have $250,000 or more in payroll in Georgia, and who spend at least $500,000 in tax credits per year. There would be a $5 million cap the first year (2018), $10 million the following year, and $15 million between 2020 and 2022. The bill would also limit companies to receiving a maximum of 20 percent of the statewide credit available each year.
Georgia's tax credits have been a driving force behind our booming industry for years. One downside has been that post production work was not able to benefit from Georgia's film tax breaks, leading to outsourcing the final steps of production.
Senators who voted against the bill claim that these tax incentives take money away from Georgia's general treasury. Those in support of the bill said that passing it will keep Georgia from missing out on post production activity and the money that comes along with that aspect of production. They also hope that this will draw film productions here, as it will create one of the most broadly spanning tax credits in the industry.
"This bill just increases the opportunities to bring more business to Georgia and expand the movie industry," said Sen. Jeff Mullis (R-Chickamauga).
The Georgia film industry only began to really take off when lawmakers approved tax credits for productions filmed in Georgia back in 2008. The Georgia film industry boasts a $7 billion economic impact last year, making it third in the nation only behind California and New York. Adding this post production credit should continue to increase the economic impact in Georgia, and keep more aspects of filming within the state.