Georgia’s film and TV industry, buoyed by its generous tax credit program, braces for potential shifts as lawmakers unveil a proposal to limit the incentive’s scope. The state currently boasts the nation’s largest production tax credit, with $1.24 billion certified last year. This, however, has caused some concern – with fears of ballooning costs and diminishing returns – prompting a legislative response.

A Tightening Grip:

The proposed bill, HB 1180, aims to curb the overall cost of the program by targeting credit transfers. While the total amount of certified credits remains uncapped, limitations are placed on their monetization. Productions can now only sell a portion (2.5% of state revenue) of their credits per year, potentially squeezing their financial leverage.

Mixed Reactions:

Industry stakeholders seem cautiously optimistic. The Georgia Screen Entertainment Coalition is reviewing the bill, emphasizing the program’s economic benefits. Production attorney Stephen Weizenecker sees this as a “middle ground” approach, aiming to balance state interests with industry growth.

Questions and Concerns:

Fiscal analyst Danny Kanso warns this might just be the first step towards a stricter cap. The bill’s effectiveness in curbing costs remains in question, with projected credit redemptions exceeding the proposed limit in future years. The industry might adjust by transferring credits earlier or moving operations to Georgia, leveraging the “non-transferable” portion of the credit.

Beyond Transfers:

HB 1180 also tightens eligibility for the full 30% credit, requiring stricter adherence to criteria like local crew and vendor usage, state-based filming days, and participation in workforce development programs. The minimum spending threshold rises from $500,000 to $1 million per project.

What’s Next?:

The bill faces scrutiny and potential amendments as it navigates the legislative process. This development highlights the ongoing debate between fostering economic growth through incentives and ensuring responsible fiscal management. The film industry now waits to see the final shape of the law and its impact on their future in Georgia.