Bill > HB1126

This bill, known as the "Georgia Musical Investment Act," establishes an income tax credit for production companies that invest in state-certified musical or theatrical performances and recorded musical performances. A "state certified production" is defined as a live performance or recording approved by the Department of Economic Development, with specific criteria for originating, developing, and performing within Georgia, or rehearsing and debuting in the U.S. here. A "production company" is a business primarily involved in these qualified production activities, excluding those in default on state taxes or loans. "Qualified production expenditures" include costs directly related to preparing, planning, recording, or staging these productions within Georgia, such as set construction, payroll, talent fees, and equipment rentals, with certain limitations on individual employee salaries and payments to loan-out companies. The bill offers a base tax credit of 15% of these qualified expenditures, with an additional 5% credit for expenditures in designated economically distressed counties (tier 1 or tier 2). However, these credits are subject to annual aggregate caps, starting at $2.5 million in 2027 and increasing to $7.5 million by 2029, with the program set to expire on January 1, 2032. Individual production companies are limited to claiming 20% of the total available annual credit, and applications for preapproval are required and will be processed on a first-come, first-served basis. Unused credits can be carried forward for three years or applied to quarterly tax payments, and they can also be transferred or sold to other Georgia taxpayers under specific conditions. The Department of Economic Development will create rules for project certification, and the state revenue commissioner will develop regulations for administering the credit.

Budget and Finance

https://www.legis.ga.gov/legislation/72680