A review is going to be conducted on Georgia’s film tax credit.
The legislature in Georgia is attempting to alter the state’s film tax incentives, which have historically been quite substantial.
The lieutenant governor’s office has issued a press release in English (US): “Lt. Gov. Burt Jones and Speaker of the House Jon Burns announce their respective appointees who will work on behalf of the Georgia General Assembly to review [..] all Georgia tax credits, including Georgia’s film tax credit.
“This review is intended to support Georgia businesses while ensuring a significant return on investment for Georgia’s taxpayers.”
For a long time, high-profile productions have been attracted by incentives offered by the US state. The Atlanta Journal-Constitution, however, noted that “If the state-subsidized 30% of the cost of manufacturing toilets, Georgia would be the toilet capital of the world. The question is if there are better uses for the lost tax revenues.”
The Georgia Department of Audits and Accounts Performance Audit Division released a report in 2020 that raised concerns about the effectiveness of rebates in the state. It read: “The impact of the film tax credit on the state’s economy has been significantly overstated, leaving decision-makers needing more accurate information to assess the credit.
“The film tax credit results in significant revenue loss for the state by reducing income tax revenue that would have been paid otherwise.”
According to a study by the Georgia Budget and Policy Institute, … (the study’s specific findings should be included here if known). “88% of companies participating in the program are based outside Georgia.” It also noted: “The film tax credit does not show any favoritism toward hiring residents in comparison to nonresidents. The distinction remains the same for all workers, irrespective of their residency.
“While Georgia residents held most of the jobs (80%) associated with the credit, most wages (53%) were paid to nonresidents.”
The study is expected to commence its meetings later this year and will include several public hearings before starting in early 2024.
Some people believe that for the Georgia legislators to maintain a strong incentive program, they will need to redesign it in a way that benefits the citizens.
