07 LC
25 4781
House
Bill 439
By:
Representative O`Neal of the
146th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-7-40.26 of the Official Code of Georgia Annotated,
relating to tax credits for film, video, or digital productions in this state,
so as to increase the amounts of certain tax credits; to eliminate certain
additional tax credits; to eliminate a defined term; to provide an effective
date; to provide for applicability; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-7-40.26 of the Official Code of Georgia Annotated, relating to tax
credits for film, video, or digital productions in this state, is amended by
revising paragraph (9) of subsection (b) as follows:
"(9)
'Tier'
means a tier as designated pursuant to Code Section 48-7-40, as amended. In the
event production expenditures will occur in more than one taxable year for a
particular state certified production, the commissioner shall prescribe
redesignation procedures to ensure that the production company can claim credits
for such state certified production in future years without regard to whether or
not a particular county is reclassified in a different
tier
Reserved."
SECTION
2.
Said
Code section is further amended by revising subsections (c) and (d) as
follows:
"(c)
For any production company and its affiliates that invest in a state certified
production approved by the Department of Economic Development and whose average
annual total production expenditures in this state did not exceed $30 million
for 2002, 2003, and 2004, there shall be allowed an income tax credit against
the tax imposed under this article. The tax credit under this subsection shall
be allowed if the base investment in this state equals or exceeds $500,000.00
for qualified production activities and shall be calculated as
follows:
(1)
The production company shall be allowed a tax credit equal to
9
15
percent of the base investment in this state;
(2)
If the base
investment in this state is in a tier 1 or tier 2 county, the production company
shall be allowed an additional tax credit equal to 3 percent of such base
investment
Reserved;
(3)
If Georgia residents are employed in the production, the production company
shall be allowed an additional tax credit equal to 3 percent of the total
aggregate payroll of Georgia residents; and
(4)
If the base investment in this state is in excess of $20 million for multiple
television projects, the production company shall be allowed an additional tax
credit equal to 2 percent of such base investment.
(d)
For any production company and its affiliates that invest in a state certified
production approved by the Department of Economic Development and whose average
annual total production expenditures in this state exceeded $30 million for
2002, 2003, and 2004, there shall be allowed an income tax credit against the
tax imposed under this article. For purposes of this subsection, the excess
base investment in this state is computed by taking the current year production
expenditures in a state certified production and subtracting the average of the
annual total production expenditures for 2002, 2003, and 2004. The tax credit
shall be calculated as follows:
(1)
If the excess base investment in this state equals or exceeds $500,000.00, the
production company and its affiliates shall be allowed a tax credit of
9
15
percent of such excess base investment;
(2)
An
additional tax credit of 3 percent shall be allowed to the production company
and its affiliates that qualify for and claim a credit under paragraph (1) of
this subsection but only with respect to that portion of such production
company´s and affiliate´s base investment that is the difference
between the production expenditures in a state certified production in a tier 1
or tier 2 county in the current year and the average of the aggregate production
expenditures made in those same counties for the years 2002, 2003, and
2004
Reserved;
(3)
If Georgia residents are employed in the production, the production company and
its affiliates shall be allowed an additional tax credit equal to 3 percent of
the difference between the total aggregate payroll of Georgia residents, which
is includable in the base investment in the current year, and the average of the
aggregate payroll of Georgia residents for the years 2002, 2003, and 2004;
and
(4)
If the excess base investment in this state is in excess of $20 million for
multiple television projects, the production company and its affiliates shall be
allowed an additional tax credit equal to 2 percent of the difference between
the production expenditures in a state certified production for multiple
television projects in the current year over the average of the production
expenditures for multiple television projects for the years 2002, 2003, and
2004."
SECTION
3.
This
Act shall become effective January 1, 2008, and shall apply to all taxable years
beginning on or after such date.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.