Georgia film tax credit could be revived in an unlikely place — Hurricane Helene relief bill

“During its tenure (the film credit) produced hundreds of jobs, Georgia jobs,” Rep. Scott Hilton, R-Peachtree Corners, who supports the film credit, told the subcommittee. “It was very successful.”

SB 52 would authorize local governments to not collect timber taxes for the last quarter of 2024 and all of 2025. The state would reimburse the local governments for the lost taxes, which would cost up to $17.3 million.

That tax break has already been incorporated into a separate bill that has cleared the House and a Senate committee, meaning the timber industry relief is likely not in danger.

But the move illustrates how, as lawmakers fight for their favorite causes, it’s not uncommon for bills intended for one purpose get hijacked for another in the closing days of the legislative session. The timber bill is a case in point.

Film tax credits adopted by the General Assembly have helped create a booming film and video industry in Georgia, allowing it to compete for projects with California and New York. However, the pace has cooled in recent years in the aftermath of the 2023 labor strike in Hollywood.

A larger tax credit, which is still in effect, has been an inducement for film production in the state.

The film tax proposal that lawmakers want to revive would expand the credit for postproduction expenses for films, television programs, music videos, commercials and similar productions.

Companies would be eligible for a 20% credit for postproduction expenses if the money was spent in Georgia. An additional 5% credit would be available for postproduction spending in counties with a population of less than 100,000 where at least 10% of people lived in poverty.

The bill would authorize the Department of Revenue to issue up to $60 million worth of such credits each year. The original credit was capped at $10 million. Like the previous credit, the renewed credit would sunset after five years.

Hilton declined to comment on the bill Thursday.

Sen. Russ Goodman, R- Cogdell, who sponsored SB 52, said he’s confident his timber relief provisions will become law through HB 223. He said the House informed him of its plans for his original bill, but he declined to comment on the film tax credit.

The proposed postproduction credit comes a year after the General Assembly tried — and failed — to limit the state’s much larger film production tax credit. A state audit found that credit creates far fewer jobs that boosters say and costs the state more than $1 billion a year.