Georgia Senate Committee Slashes Production Tax Credit Cap as Deadline Looms

Lowered Cap Heightened Concerns: Georgia Senate Reduces Tax Credit Cap but Exemptions Raise Eyebrows

Exemptions Erode Limits: Senate Finance Committee Carves Out Loopholes Despite Decreased Cap on Production Tax Credits

According to published article of deadline, The Georgia Senate’s recent alterations to the film and television production tax credit bill have sparked significant changes notably in the cap’s structure. Initially proposed to be set at 2.5% of the state budget amounting to around $900 million the latest Senate version has lowered this limit to 2.3%, approximately $830 million. However, the Senate Finance Committee introduced substantial exemptions that undermine the effectiveness of this cap.

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Georgia Senate Committee Slashes Production Tax Credit Cap as Deadline Loom (PHOTO: Deadline)

Studio Exemptions Undermine Cap Integrity: Georgia’s Largest Production Facilities Given Free Rein, While Smaller Studios Feel the Pinch

One of the most prominent exemptions applies to productions filmed at Georgia’s largest studio complexes such as Trilith home to major franchises like Marvel. According to the bill these studios must meet either a $100 million investment threshold or have a footprint of at least 1.5 million square feet of stage space to qualify for exemption. Consequently productions at these studios would not count towards the cap leaving smaller sound stage owners particularly those within the Atlanta metro area subject to its limitations. Despite the revision lawmakers have noted that the exemptions effectively render the cap almost meaningless as hundreds of millions of dollars in eligible tax credits are now excluded.

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