Changes to Georgia TV, film tax incentive adds extra hurdles for production companies

ATLANTA - A tax incentive that brought so many film and T.V. productions to Georgia could vanish for some smaller companies. A new proposal in the Georgia House would require companies to clear additional hurdles and pay more to qualify for the tax credit. Many smaller production companies fear they won’t be able to meet those requirements.

State Rep. Kasey Carpenter, (R) District-4, wants to streamline Georgia’s film tax credit. "To make sure that it doesn’t expand so much that it doesn’t become a burden to taxpayers" Carpenter said.

State Rep. Kasey Carpenter (R-Dist. 4)

Right now film and T.V. production companies get a tax break of 20-percent to do business here in Georgia. And they get a 10-percent credit on top of that. Carpenter introduced a bill that would require production companies to clear more hurdles to qualify for that extra 10-percent tax break.

"Nine options to choose from and ask you to fulfill four of them," Carpenter said.

Some of the new requirements would include a company must spend at least $30 million in Georgia. And a company must spend at least $1 million on a single production to qualify for the tax credit.

Tabitha Mason-Elliott, who chairs the National Board of Independent Commerical Producers and is a partner with the production company Bark Bark, says the additional 10% does not affect smaller production companies that shoot commercials. But she worries the requirement that companies spend at least $1 million on a single production would prevent smaller companies from qualifying for the original 20% tax credit. "It is a really bad proposal." Mason-Elliott said.

She says placing more requirements on companies could reduce the number of jobs in Georgia’s film and T.V. industries. "A lot of our companies will just be shooting elsewhere," Mason-Elliot said. "I think Georgia could lose a fair amount of money."

Tabitha Mason-Elliott, chairperson of the National Board of Independent Commercial Producers

Carpenter responded "I would argue that it does not. Over 75-percent of the indie films would qualify for this, so I disagree."

The Georgia Speaker of the House supports the bill. The House must clear the measure so it can cross over to the Senate to stay alive.