ATLANTA — A bill introduced in the legislature could bring down the film industry in Georgia. The measure calls for an end to the state’s generous tax credit for filmmakers.
Filmmakers didn’t aggressively set up shop in Georgia until after the state passed a law that created a generous tax credit to draw them here. That was in 2008.
Three years ago, the film industry was at the capitol to pat itself on the back for taking advantage of the tax credit and making Georgia its top destination.
"Today to stand here and say Georgia is number one in the world just blows my mind," exulted state Rep. Ron Stephens (R-Savannah) during the event at the capitol in January 2018.
But the cost to taxpayers is implicitly criticized in a House bill introduced this week that would eliminate the tax credit. State audits and studies of the film industry say the movie industry is picking the pockets of taxpayers – with the blessing of state officials.
"The Georgia film tax credit is not fiscally sensible at all. It absolutely does not pay for itself. It is a huge expense on the economy," said Kennesaw State University economist JC Bradbury, who wrote one of the studies.
In 2018, the state claimed the film industry delivered a $9.5 billion economic impact to Georgia. That assertion – according to the KSU study – “lacks any economic justification” – which said the actual impact is less than half that.
The state also claimed the film industry produced 92,000 jobs. The KSU study says the actual impact is about one-third of that. It says each film job costs the state up to $119,000 – which figures at about $220 per Georgia household.
"That’s two hundred dollars that’s coming out of the pockets of Georgia taxpayers that’s mostly going to California. So it’s a huge wealth transfer. It’s not any type of economic stimulus for the economy at all. There’s no evidence that it is," Bradbury said Friday.
Bradbury acknowledges the film tax credit has been popular anyway – not only among filmmakers but also Georgia politicians. One lone Republican Gwinnett County lawmaker, state Rep. David Clark (D-Buford) is sponsoring HB 441, which would repeal it. It will have trouble getting any traction.