Georgia Senate Panel Proposes $900 Million Cap on Film Tax Credit
variety.comGene Maddaus Senior Media WriterA committee of the Georgia State Senate voted on Monday to cap the state’s lucrative film and TV tax credit at $900 million per year.The tax credit has made Georgia a major hub of film and TV production over the last decade.
Last year, the credit soared to a record $1.2 billion as production exploded in the state following the pandemic.The program is currently uncapped, meaning that all productions that spend at least $500,000 in the state in a year are guaranteed a 30% credit on their expenses.
The credits are also transferrable, meaning that studios can sell them at close to face value to other taxpayers.The Senate Finance Committee proposal would cap the program and make credits non-transferrable.
If the latter provision became law, studios could only take advantage of the credit to the extent that they have tax liability in the state, significantly reducing the credit’s value as a production incentive.
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