Two months after state auditors highlighted shortfalls in Georgia’s Film Tax Credit program, lawmakers have approved a bill that would tighten the requirements for the incentive.
In January, state auditors reported Department of Economic Development officials who administer the program inflated the economic impact of the program by using calculation metrics that doubled projections. They also found the film tax incentives were issued to more than 80 ineligible productions, costing taxpayers $60 million.
“This is a process improvement bill,” said Rep. Mark Dollar, R-Marietta, the bill’s sponsor.
Georgia’s film tax credit gives a 20 percent tax incentive to production companies that spend at least $500,000 on selected projects in the state. Companies that promote the state in their work also get an additional 10 percent credit.
House Bill 1037 would hold the additional 10 percent until the production is distributed. It also reduces the carry forward period for the credits from five years to three years. Hoping to attract soccer’s World Cup to Georgia, lawmakers extended the credit to certain sporting events. See more here.