ATLANTA – State Representative Ron Stephens (R-Savannah) commented today on Governor Nathan Deal signing into law House Bill 1027, legislation that closes loopholes and clarifies provisions of the state tax credit for film and video production in Georgia. Sponsored by Rep. Stephens, HB 1027 passed the General Assembly with broad, bipartisan support during this year’s legislative session, receiving a vote of 154 to 4 in the House and a unanimous vote of 46 to 0 in the Senate.
“The tax credit for film production in Georgia has caused one of the biggest economic explosions in the state’s history. In six short years we have moved from $100 million per year of business to $2.5 billion,” said Rep. Stephens. “Georgia is the new Hollywood.”
HB 1027 amends several parts of the 2008 Georgia Entertainment Industry Investment Act. These amendments include adding a legislated logo placement provision, which will increase marketing value for the state, and establishing a cap on interactive entertainment projects. The legislation also clarifies the requirements of Georgia’s tax credit for professional film and video production within the state by adding language to ensure that disqualification from the tax credit for post production expenditures only applies to productions predominantly shot outside of Georgia. Additionally, HB 1027 requires production companies to withhold Georgia Income Tax on Loan-out Companies, a measure that will facilitate administration and compliance while ensuring Georgia income tax collections and remittances. These amendments will take effect January 1, 2013.
Since its passage in 2008, the Georgia Entertainment Industry Investment Act has helped the state’s entertainment industry achieve record numbers. Georgia is now among the top five states in the nation for film and TV production with more than 336 productions shot in Georgia from July 2010 through June 2011, bringing more than $683.5 million in investment to the state. These projects have generated an economic impact of $2.4 billion.
The Georgia Entertainment Industry Investment Act provides an income tax credit of 20 percent to qualified productions, and an additional 10 percent tax credit to productions that embed a Georgia promotional logo in the titles or credits, or as product placement within the content of the production. The tax credits may be awarded not only to traditional feature films, television series, commercials and music videos, but also to innovative new industries such as video game development and animation.
For more information on HB 1027, please click here.
Representative Ron Stephens represents the citizens of District 164, which includes portions of Bryan, Chatham, and Liberty Counties. He was elected into the House of Representatives in 1996, and is currently the chairman of the Economic Development & Tourism Committee. He also serves on the Appropriations, Rules, and Ways & Means Committees.
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