Postproduction Credits Back on the Menu: Georgia Revives Income Tax Credits for Film/TV Postproduction Activities

In the final days of the session, the Georgia Legislature reinstated Georgia’s income tax credit for film and television postproduction activities.

For tax years beginning January 1, 2026, H.B. 129 will now permit Georgia postproduction companies spending at least $500,000 on qualified expenditures in Georgia to receive a 20% credit, with an additional 10% credit for projects shot in Georgia, and another 5% credit for expenditures incurred in qualifying rural counties. The legislation is now scheduled to sunset by January 1, 2031.

The legislation also sets a cap of total credits available over the five-year period at $10 million.

These postproduction tax credits are available to companies that are:

1. physically located in Georgia;
2. have at least $100,000 in total aggregate payroll; and
3. engaged in “postproduction activities” for film or television — such as activities related to, among other things, “photography and sound synchronization”; the creation of “sound recordings and musical compositions”; and “digital or tape editing, film processing, transfers of film to tape or digital format, sound mixing, computer graphics services, special effects services, and animation services.”

To qualify for the credits, the postproduction company must seek preapproval from the Georgia Department of Revenue through electronic application.

Most importantly, once approved, the postproduction tax credits (based on the estimated qualifying expenditures for “postproduction activities”) are allocated on a first-come, first-served basis.

Given the maximum cap of $10 million, postproduction companies should evaluate seeking preapprovals and securing any credits as soon as possible. Because postproduction tax credits are transferrable, film/TV companies also have an opportunity to monetize the credits from their approved projects.

Governor Kemp is expected to sign the legislation.