Thanks to an extremely generous tax credit for movies and TV shows shot there, Georgia has become a surprisingly big part of the Hollywood machine. How many TV shows end with that pleasingly melodic “Georgia” signature in the credits? How many Marvel Cinematic Universe movies have made billions of dollars by turning the fabulous backlots and warehouses of Peach State into the fabulous backlots and warehouses of Wakanda, or Sokovia, or Spider-Man: No Coming Homeit’s new york? Showbiz wouldn’t be anywhere without Georgia these days.
And Georgia is fed up with this. Well, maybe it’s a bit dramatic, but the State Senate has come up with a way to reduce how extremely generous this extremely generous tax credit is. As it is now (thanks to Variety to explain everything) any film or television production that spends at least $500,000 in the state per year is guaranteed a 20% tax credit and a Additional 10% credit if they put that “Georgia” logo in the credits. Best of all, these tax credits are transferable, so movie and TV studios can sell them to people or businesses that are actually based in Georgia and save Continued money.
The Georgia State Senate is proposing a change to this system that would cap total tax credits awarded at $900 million, a few million less than last year’s total credits. Also, under the proposed change, the credits would no longer be transferable, meaning it wouldn’t really be worth it unless your studio was planning on paying a lot of taxes in Georgia – and given that the most film studios are not based in Georgia. , that takes away a lot of the incentive.
The core problem seems to be some people in Georgia who don’t like their state leaning so much, financially, to… you know, Hollywood genres. Coastal elites. Actors named Chris. During a hearing, in response to someone noting that the film industry pumps $4 billion into the state economy each year, Republican state senator Chuck Hufstetler said the credit for tax “required limits” and that tax money was used to pay for “private jets”. , personal trainers and chefs.
This proposal also comes as Hollywood and Georgia have for years played a game of chicken over the film industry’s perceived liberal leanings and the state’s headlong dive into a lot of Right wing bullshit. The state has often seemed uncomfortable with the money Hollywood takes, and measures like this tax credit idea seem like a way to feel the studios and see how they will react. Historically, they haven’t reacted to the aforementioned right-wing bullshit at all, but we’ll see if playing with their wallets elicits a bigger reaction.
As for anyone who doesn’t live in Georgia or work on movies, the relevant part of this is that a ton studios use Georgia tax credits, so if getting them becomes less beneficial, it can have a long-term impact on how movies, especially big-budget ones like the Marvel stuff, are made.