Smaller film and T.V. production companies in Georgia may soon face a much tougher time cashing in on state tax incentives if new legislative proposals pass. Lawmakers are looking to amend current laws to add extra requirements for companies to qualify for a lucrative tax break, according to FOX 5 Atlanta. State Rep. Kasey Carpenter (R) District-4, is spearheading the effort which could greatly impact how smaller productions, particularly commercial producers, operate throughout Georgia.
The current incentives offer a 20-percent tax break for productions and an additional 10-percent credit that companies have been able to secure with relative ease. Carpenter's bill, however, would enforce strict criteria that many fear could leave small players in the industry out in the cold. The bill demands, among other stipulations, a minimum spend of $1 million on a single production and at least $30 million in-state expenditure to be eligible for the extra tax credit. "Nine options to choose from and ask you to fulfill four of them," Carpenter stated, as obtained by FOX 5 Atlanta.
Opposition to the proposed changes has been swift and strong from industry stakeholders. Tabitha Mason-Elliott, who chairs the National Board of Independent Commercial Producers and is a partner at Bark Bark, has been vocal about the negative impact these hurdles would inflict upon smaller productions. "It is a really bad proposal," Mason-Elliott told FOX 5Atlanta. Her concern is that the heightened requirements will result in a loss of jobs and productions fleeing Georgia for more accommodating locations, potentially hurting the state's economy in the long run.
Carpenter, however, believes that the fears are overblown. "I would argue that it does not. Over 75-percent of indie films would qualify for this, so I disagree," he explained in his defense of the bill. This assertion is challenged by individuals like Mason-Elliott who expressed to the Times Free Press, "We spend millions a year on commercials and I feel we are being disregarded." Her Atlanta-based company, Bark Bark Entertainment + Content Studio, which specializes in promos and commercials, has already faced difficulties from earlier audit requirements.
With the backing of the Georgia Speaker of the House, the proposed changes to the tax incentive program appear to have a significant momentum. As the bill continues its journey through the state legislature, the conversation surrounding its implications highlights the delicate balance between fostering the local film and T.V. production industry and maintaining a tax structure that benefits the state without overburdening taxpayers.
