Gov. Brian Kemp signed House Bill 475 (HB 475) earlier this month, ushering in a new age of tax credits that reflects the ever-changing film and TV industry.
The bill goes into effect at the start of next year and was sponsored by Rep. Matthew Gambill (R) and Sen. Matt Brass (R). Notably, it made specific provisions for streaming and FAST (Free Ad-Supported TV) productions, which the old tax credit did not have specifically outlined, leading to uncertainty for certain productions.
Georgia was already known to have one of the most lucrative tax breaks for productions in the country — a large reason why the state became “Hollywood of the South” and, by some measurements, even passed Hollywood in terms of overall productions.
The state’s original notable tax credit, the Georgia Entertainment Industry Investment Act, was passed in 2005 and greatly expanded in 2008. Many point to it as being a large driver in major studios shooting their films, like Marvel shooting its superhero movies in Georgia.
Today, Georgia is home to the largest production studio outside of Hollywood with Trilith Studios, which opened in 2013 as Pinewood Studios; it also welcomed the opening of Blackhall Studios — now Shadowbox Studios — in 2017 and the relocation of Tyler Perry Studios a few years later in 2019 after transforming the former Fort McPherson.
With new provisions reflecting how the industry has evolved since then — like streaming — Georgia looks to enter a new chapter of being the best place for production.
Eric Goins, President of the Screen Actors Guild and the American Federation of Television and Radio Artists (SAG-AFTRA) Atlanta local chapter, said HB 475 is a way of modernizing the tax incentives that made the state so popular for filming and will help secure the industry’s future in the state.
“This is a great indication that the Georgia legislature and the filmmaking community are working in tandem now, and they have come together to really have a united front and united message to the industry,” said Goins. “I think that message is: let’s get it done because Georgia has recognized what an important economic boost the film industry has brought to Georgia; it has put a lot of Georgians to work.”
The tax credit explicitly covers “film, gaming, video, or digital production,” with an explicit exclusion of “user-generated content distributed exclusively via social media platforms.”
HB 475 also gives more power to the Georgia Department of Economic Development (GDEcD) to manage and adjust processing times, deadlines, and fees for productions seeking to qualify for the tax credit. In effect, it allows more clarified specifics to be outlined by GDEcD for the tax credit application process and reduces costs on state taxpayers if a tax credit is denied and fought over in court.
Goins said those changes bring “predictability and structure” as to what’s required to qualify for the tax credit, which will ultimately be useful for productions looking to shoot here.
“Transparency, accountability and predictability,” said Goins, summarizing what he feels the bill accomplishes.
In addition to HB 475, Georgia also passed HB 129 in early April, which will serve as a reinstatement of a post-production tax credit — everything after the principal shooting.
“It is a continued effort to continue to grow the tax incentives in the film industry here in Georgia, and that is very reassuring to a member who makes their living in the film industry,” Goins said.
Goins has seen the rise of the state’s film industry firsthand after moving to Atlanta in 1989. The last 15 years have seen an unpredictable boom in streaming, with streaming services now dominating the market and producing their own film and TV series. For context, though Netflix was founded in 1997, it did not launch its streaming service until 2007, before the state’s original production tax credit got its update.
“This is an answer to where the industry is right now and where it is headed in the future,” Goins said.
He is optimistic that, especially with the help of these new incentives, Georgia’s place as a production powerhouse can be sustained long-term.
“We’ve already proven it because we’ve sustained it for 20 years, and now we’ve taken a big step in making things even better, more streamlined, and more transparent,” Goins said. “There is always a need for storytelling… I truly believe that the world needs doctors, lawyers, plumbers, teachers, drivers, but the world [also] needs storytellers because it’s how we reflect our society back to ourselves.”
