THE INCENTIVES PROGRAM - TIP

On May 6, 2024, Governor Brian Kemp signed House Bill 1181 into law, thereby amending the Georgia Entertainment Industry Investment Act by reducing the unused tax credit carryforward from five to three years.

This is effective on January 1, 2025, and is applicable only to the unused tax credits generated during the taxable years beginning on or after January 1, 2025.

On May 15, 2024, Governor Bill Lee signed House Bill 2973 into law, thereby appropriating $5 million to the Tennessee Film and Television Incentive Fund for the 2025 fiscal year (July 1 – June 30) and authorizing the Commissioner of Finance and Administration to carry forward unexpended balances of any appropriations made for the incentive fund, and the unexpended grant balances of the Tennessee Entertainment Commission.

This bill will take effect July 1, 2024.

House Bill 1358 is on Governor Jared Polis’ desk and if signed would amend the existing Colorado film incentive program as follows:

• Amends the tax credit language to read that a qualified production may earn up to 22% of qualified local expenditures, if any production company meets the following requirements:
  • Spends at least $100,000 in qualified local expenditures; and,
  • Employs a workforce for any in-state activity made up of at least 50% Colorado residents;
• Qualifies payments of up to the 1^st $1 million per calendar year per loan out company provided the production company files an information return pursuant to section 39-22-604 (21);
• Allows up to $5 million in tax credits to be reserved in each calendar year thru 2031;
• Requirements:
  • Submit an application to the office for a tax credit reservation before commencing production activities in the state;
  • Complete production activities in Colorado on or before December 31, 2031;
  • Submit an independent certified public accountant’s report; and
• Establishes a new sunset date of December 31, 2031.

Senate Bill 795 is on Governor Josh Green’s desk and if signed would amend the motion picture, digital media, and film production tax credit program by:

• Allowing the taxpayer to provide evidence of reasonable efforts to comply with all applicable requirements under title 14; and,
• Requiring that the taxpayer is given notice of and an opportunity to cure any failure to meet certain requirements within 30 days of receipt of the notice.

This act would take effect on January 1, 2025.