Georgia’s Postproduction Credit to Build on Film Industry Gains

The Georgia income tax credit for film and television postproduction activities, signed into law last week, will bolster the state’s competitiveness in the filmmaking industry. It also will merit attention from production companies and their tax advisers in other states.

For tax years beginning Jan. 1, 2026, HB 129 will 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 Jan. 1, 2031.

It also caps total credits available over the five-year period at $10 million. Generally, Georgia’s postproduction tax credits are available to companies that are physically located in Georgia, have at least $100,000 in total aggregate payroll, and are engaged in “postproduction activities” for film or television.

Such activities include those related to 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.

The postproduction tax credits are allocated on a first-come, first-served basis once approved. 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 transferable, film and television companies also can monetize the credits from their approved projects.

Benefits to Georgia

Georgia’s successful incentive program for film projects has catalyzed the state’s prominence in the film industry and its overall economic growth.

According to the most recent data from the state, the film tax credit was expected to generate approximately $225 million in additional state revenue and $66 million in local tax revenue for fiscal year 2024. Further, the state estimated the creation of approximately 28,000 jobs and $1.5 billion in added value to its economy.

Georgia was ranked the No. 1 state for film and television production by Business Facilities magazine in 2024, the second consecutive year it has held this top position.

Despite numerous challenges to the film industry overall, including strikes that delayed production schedules, the film and entertainment industry spent roughly $4.1 billion in the state during fiscal year 2023. Total direct spending by the industry reached upward of $11 billion over the last three years.

The state is trying to replicate this same success for postproduction activities—which, as the name suggests, occur after filming has concluded. Postproduction can be entirely separate from initial production activities and involves varying inputs of skills, activities, and overall creativity.

Extending Georgia’s incentive program to postproduction promotes the entire filmmaking process. Instead of splitting up activities between Georgia and Hollywood, the program ensures the whole process can occur within the state’s borders, maximizing the economic benefits from both programs.

The new legislation also supports a small but growing cottage industry of postproduction studios in the state. At least one postproduction studio has announced plans to relocate to Georgia, citing the benefits extended by the state’s credit program specifically for postproduction activities.

Additionally, Honnie Korngold, founder of film and television production company South Georgia Studios, told lawmakers that the postproduction credit would attract new talent and investments into the state, including her own studio, which relocated from Los Angeles to South Georgia.

Even if postproduction studios may not be directly involved in the initial filming, they can play an outsized role in the postproduction activities that lead to the final product. Georgia’s approach to incentives aims to solidify the state as supporting the comprehensive filmmaking and creative process.

Impact Outside State

Production companies, including their tax advisers, should pay close attention to the renewal of Georgia’s incentive for postproduction activities.

First and foremost, the amount of total available credits are capped, and allocated on a first-come, first-served basis. Determining eligibility and filing the requisite applications and supporting documentation is crucial.

Second, like film tax credits, these credits are transferable, allowing postproduction companies the ability to monetize the credits to ensure projects are financially viable. That is, instead of using the credits against their own income tax liabilities (if any), postproduction companies may opt to sell the credit to other Georgia taxpayers, allowing the companies to generate cash in exchange for their credits.

Finally, Georgia’s use of tax credits provide key insight on how other states may react, potentially spurring other states to offer similar or even broader credits to remain competitive with Georgia.

As echoed by lawmakers, HB 129 will ensure Georgia remains the state to complete film projects, from soup to nuts.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.

Author Information

Matthew V. Wilson is a corporate finance and intellectual property partner at Arnall Golden Gregory and chairs the firm’s entertainment and sports industry team.

Hanish S. Patel is of counsel in Arnall Golden Gregory’s corporate and finance, tax, and economic development and finance practices, and a member of the firm’s entertainment and sports industry team.

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