Georgia Delivers Postproduction Revival Package
Here’s something that caught Hollywood’s attention this year: Georgia just brought back its film tax credit for postproduction work, which had been sitting on the shelf since 2022. Think of postproduction as the magic that happens after the cameras stop rolling – the editing, color grading, sound mixing, and visual effects that transform raw footage into finished films. House Bill 129 allows postproduction companies in Georgia to earn a 20% tax credit on projects spending at least $500,000. But that’s not all – there’s an extra 5% bonus if the work gets done in a rural county. The new incentive kicks in on January 1, 2026, and includes an additional 10% credit for projects shot in Georgia. The legislation is scheduled to sunset by January 1, 2031.
Budget Constraints Shape the New Incentive
The state set a cap of total credits at $10 million over the five-year period, which might sound generous but could fill up faster than expected. These credits are allocated on a first-come, first-served basis, meaning postproduction companies should evaluate seeking preapprovals and securing credits as soon as possible. Companies must seek preapproval from the Georgia Department of Revenue through electronic application. The limited budget creates a competitive atmosphere where timing becomes crucial for companies wanting to capitalize on these benefits. The credits are transferrable, giving film and TV companies an opportunity to monetize the credits from their approved projects.
Industry Demand Drives Legislative Action
The bill was the brainchild of B.I.G. Entertainment, a local trade association. During a Georgia Senate Economic Development and Tourism Committee hearing, producer Honnie Korngold said the postproduction credit would attract new producers and studios, getting them to stay in Georgia long term. Sound designer Greg Crawford from Smart Post Sound explained that the credit would incentivize people to move entire productions into Georgia, starting with the writers room. The industry pressure made sense – studios are offshoring production and postproduction to places like the United Kingdom and eastern European nations, with projects sometimes shooting in Los Angeles but completing postproduction work in London or Vancouver.
Rural Counties Get Extra Sweet Deal
Georgia’s trying to spread the film industry wealth beyond Atlanta’s metro area. The additional 5% credit for postproduction work completed in rural counties creates an incentive structure that could help smaller communities tap into the entertainment economy. This rural bonus recognizes that postproduction work doesn’t require the same infrastructure as filming – you need good internet, skilled workers, and quality facilities, but not necessarily the massive soundstages and location variety that production demands. Postproduction services are available in multiple locations around the state, so having the incentive would encourage more producers to take advantage of the credit. As one industry professional noted, “You start adding up the color, audio, editorial — all that can really add up to a significant amount of money”.
Competing Against Global Powerhouses
This new incentive helps Georgia compete with states like New York and countries like Canada and Ireland, which offer similar postproduction incentives. Georgia and other states with film incentives have been working to attract production back to their states by improving their credits or streamlining administrative processes, while California lawmakers filed a bill to increase to 35% the amount of costs that productions filming in the Los Angeles area can receive back from the state. The competition is fierce, and Georgia’s lawmakers understand that standing still means falling behind. By reinstating this tax credit, Georgia is positioning itself as a top choice for postproduction work, attracting more projects and investments to the state.
Main Film Tax Credit Survives Political Pressure
While the postproduction credit was making headlines, Georgia’s main film tax credit faced serious political challenges. In February 2024, state legislators introduced House Bill 1880, which threatened producers’ ability to get the extra 10% bump and the massive film and TV industry that has been built in Georgia since 2008. Under the proposed law, productions would have been required to meet four of nine criteria to get the 10% bump. The failure to pass a bill was a reprieve for the Georgia film industry, which relies heavily on the incentive and had been watching the legislation closely. Legislators will now have to wait until the next session, beginning in January 2025, to address the issue.
Georgia’s Uncapped Advantage Remains Intact
Georgia’s film tax credit program has no limit on the amount of tax credits that can be earned in a given year, and there is no sunset clause on the program. This makes Georgia’s incentive the second largest incentive pool in the country, after which does not have a limit. The state certified $1.24 billion in credits last year, which is more than any other state in the country. While Georgia’s base 20% transferable tax credit isn’t that impressive compared to California’s 20%-25%, New York’s 30%, or New Mexico’s 25%-40%, what sets the state apart is the 10% bump it gives projects for including its Peach State logo in their credits – it’s a “gimme” that no one refuses, making the state’s incentive effectively 30%.
Billion-Dollar Industry Faces Headwinds
The Georgia Film Office reported that film and television productions spent $2.6 billion in Georgia during fiscal year 2024, a total of $11 billion over the last three fiscal years. However, this $2.6 billion represents a staggering 37% decrease from the previous fiscal year. This is the lowest spending figure Georgia has seen since the pandemic year of 2020, when production halted for months due to COVID-19 restrictions. In comparison, productions spent $4.1 billion in Georgia during fiscal year 2023. The first major factor was the occurrence of two strikes that disrupted the industry – labor strikes involving writers, actors, and other industry professionals seeking better wages and working conditions, which led to productions being delayed or halted entirely, with projects slated for Georgia being postponed or moved elsewhere.
Infrastructure Boom Continues Despite Challenges
Since the film tax incentive was revised in 2008, stage space has increased from 45,000 square feet in 2010 to more than 4.5 million in 2024. Georgia is now second for stage space in the U.S., with several new soundstage campuses coming online in FY24, including Assembly Atlanta in Doraville on the 135-acre site of the former General Motors Assembly plant, and BlueStar Studios at the former Fort Gillem. According to a recent report out of Los Angeles, Georgia has now surpassed New York as the state with the second-highest amount of soundstage footage in the U.S., and is poised to become No. 1 if the growth continues as projected. Tyler Perry Studios also repurposed a U.S. military facility, making its home at Atlanta’s former Fort McPherson.
Economic Impact Generates Impressive Returns
A newly released study based on unprecedented access to Georgia film production data confirms the state’s film tax incentive has fueled $8.55 billion in economic activity statewide in fiscal year 2022 alone, is responsible for nearly 60,000 jobs, and generates a return on investment of $6.30 for every $1 in tax incentive. Analysis shows that production spending in Georgia grew by more than 17% each year from 2012-2023, creating a $29.65 billion economic impact on Georgia’s economy and supporting $12.2 billion in wages in the past five years alone. The study showed that studio construction, which does not receive the film tax credit, created $1.28 billion in capital investment from 2012-2022. The study found that without the film tax incentive, more than 92% of productions would have chosen another state or country.
Workforce Development Takes Center Stage
Georgia residents are being prepared for jobs in the film and television industry through resources like the Georgia Film Academy, which is responsive to the needs of the industry and can quickly develop curriculum to suit productions’ needs. The State of Georgia hosted 390 productions during fiscal year 2023, represented by 31 feature films, 55 independent films, 241 television and episodic productions, 40 commercials, and 23 music videos. As Governor Brian P. Kemp noted, those who benefit most from the significant growth are hardworking Georgians who fill the many behind-the-camera jobs that come with each project. The state understands that having a skilled local workforce reduces production costs and makes Georgia more attractive than locations where crews must be imported.
Business Facilities Magazine Recognizes Georgia’s Leadership
Georgia Film Office Director Lee Thomas expressed excitement about being recognized by Business Facilities for the second year in a row for the state’s continued commitment to Georgia’s film industry. The state continues to host beloved episodic productions like ‘Cobra Kai,’ ‘Will Trent,’ and ‘Stranger Things’ while new film and television projects ramp up. Georgia was ranked No. 1 in Film Production by Business Facilities Magazine in their 2024 Rankings Report. Recent news from Georgia Entertainment and from Georgia Department of Economic Development puts the state at the top in the country for productions and studio space. This recognition matters because it signals to industry decision-makers that Georgia remains a reliable and competitive destination despite recent challenges.
Streamlined Processes Boost Competitiveness
Georgia is dedicated to being responsive to the needs of the industry, recently streamlining the audit process, modernizing the tax credit application process, and reinstating a stand-alone tax credit for postproduction companies. In March, Georgia updated the audit process required of all tax credit-eligible film and television productions to make the process faster and less expensive. These improvements address one of the biggest complaints production companies have about incentive programs – bureaucratic delays and complicated paperwork that can eat into budgets and schedules. For projects with estimated budgets under $100 million, applications must be submitted electronically not earlier than 120 days prior to principal photography start date and no later than seven calendar days after, while projects over $100 million get 180 days.
The postproduction credit expansion represents Georgia’s latest move to maintain its position as a film industry powerhouse, even as the state navigates political pressures and industry-wide challenges that led to a significant spending decline in 2024.
