(MENAFN) Georgia lawmakers are proposing changes to the state's film tax credit program, suggesting that moviemakers should fulfill additional criteria beyond simply displaying a peach at the end of the credits to qualify for the highest benefit. The film tax credit has been instrumental in attracting major productions like "The Hunger Games," Marvel movies, and "Furious 7" to Georgia, transforming the state into a prominent destination for film and television projects. These productions, drawn by lucrative tax breaks, have bolstered Georgia's economy, generating thousands of jobs and fostering the growth of numerous production studios.
At a news conference held on Wednesday, legislative leaders outlined their proposal, which would require companies to meet four out of nine specified goals to qualify for the top 30 percent credit on Georgia income taxes. Among these objectives are shooting in rural areas of Georgia, increasing the hiring of local workers, and supporting in-state production studios. House Ways and Means Committee Chairman Shaw Blackmon emphasized that the intention is not to restrict the availability of the tax credit but rather to enhance its value and ensure a better return on investment for taxpayers while sustaining the growth of the industry.
Blackmon, a Republican from Bonaire, highlighted the importance of maintaining the competitiveness of Georgia's film industry while maximizing the benefits for the state's residents. The proposed changes come after a thorough review of all tax breaks offered by Georgia to various industries, reflecting lawmakers' efforts to optimize economic incentives while addressing emerging challenges. In addition to the proposed adjustments to the film tax credit program, lawmakers also announced plans to temporarily suspend a sales tax exemption on equipment provided to data centers.
The rapid expansion of data centers in Georgia has strained the power grid, prompting concerns about the need for increased electrical generation capacity. Georgia Power Co. has expressed urgency in addressing this issue by constructing or securing new power generation facilities. Lawmakers' decision to reassess tax incentives in light of evolving economic dynamics demonstrates a commitment to ensuring sustainable growth and resource management across diverse industries in the state.
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