ATLANTA — A Senate committee passed a bill Monday that would put a cap on Georgia’s lucrative film tax credit. The film industry has used the credit to build a huge presence in the state – worth billions of dollars.
But some economists say it’s also a drain on taxpayers and some lawmakers want to address it.
The Senate Finance Committee was considering an overhaul of the state income tax when its members pulled out a surprise that could clamp down a bit on the state’s film industry.
The film industry tax credit essentially pays film companies to work here. As the industry expanded, so did Georgia jobs. But so too did the state’s obligation to subsidize the industry – which a Kennesaw state economist says was worth $220 per household in 2019 – and expanded to $330 per household two years later.
"It’s way higher than the average for the last five years. It just keeps growing," said state Sen. Chuck Hufstetler (R-Rome) during a hearing Monday. "I could get into the things we’re paying for – private jets and chefs and personal trainers. That probably needs cleaning up."
The Senate Finance Committee measure would cap the film tax credit at $900 million annually, around the 2019 level. Currently, there is no cap on the state’s film subsidy.
The proposed cap took some lawmakers by surprise.
"Seventy-five thousand people working in this industry in this state," said Sen. Nan Orrock (D-Atlanta) during the Monday committee meeting. "And I feel just very, very cautionary about our whacking this tax credit that made us the third-highest state in the country for film activity."
The Senate committee voted to cap the film tax credit without taking any testimony from backers of Georgia’s film industry – who delivered, with taxpayer help, an industry now worth billions to the state.
"Well, we’re probably going to get a lot of (their) concerns over the next week or so," Hufstetler said.
The 2021 session of the General Assembly is due to adjourn on April 4.