.png)
- Bankable Consultants
- Jan 6
- 4 min read
Updated: Jan 6
January 06, 2026
Reemergence of Georgia's Post-Production Tax Credit
Georgia has long been a powerhouse in the film, television and entertainment world, in large part thanks to its generous production tax credits. After a period without a standalone post-production credit, the Georgia legislature moved to reinstate one, with new terms and thresholds that reflect shifts in the industry. Today, we dissect what has changed, what producers need to know, and what this means from a legal and compliance perspective.
Background: Georgia’s Film Tax Incentives & The Lapse of Post-Production Credit
Georgia’s base film tax credit has been 20% of “qualified in-state expenditures” (with minimum spend requirements) for projects meeting certain criteria. There has also been an “uplift” (an extra 10% in many cases) for productions that include promotional value for the State — e.g. embedding a Georgia logo, etc.
A separate, stand-alone post-production tax credit used to exist, allowing post-production companies to claim credit even for work on footage that was shot outside Georgia, as long as the post work was done in state. That credit expired (or was allowed to lapse) in recent years.
What’s New: HB 129 & Restored Post-Production Credit
Through House Bill 129, Georgia is bringing back a post-production credit beginning January 1, 2026 with the following key terms:
Feature | Term or Requirement |
|---|---|
Who qualifies | Stand-alone film & television post-production companies; need not have shot the footage in Georgia to claim credit provided post-production is done in Georgia. |
Minimum spend | $500,000 in qualified expenditures in Georgia. |
Credit rate | 20% base credit. Additional credits possible: +10% for projects shot in Georgia; +5% for post‐production expenditures in qualifying rural counties. |
Sunset date | The reinstated credit will expire (sunset) on January 1, 2031, unless further legislative action extends it. |
Other Important Changes and Clarifications
Footage shot outside Georgia: Previously, only projects/footage shot in Georgia qualified for many credits. Under the new law, post-production work done in Georgia qualifies even if the raw footage comes from outside the state. This is a big deal for VFX, editing houses, and studios that specialize in post-production-only work.
Audit & compliance changes: Georgia has updated audit procedures and tightened up requirements for certification and timing. Producers and post-production vendors will need to pay close attention to qualifying expenditures, documentation, withholding (loan-outs/1099s), and deadlines.
Administrative oversight: The Georgia Department of Revenue will oversee the reinstated post-production credit. The Georgia Department of Economic Development (GDEcD) will also have clarified rule-making authority and responsibilities.
Implications & Considerations
For Producers:
Re-evaluating business models: Companies that handle post-production work exclusively may see this as a renewed opportunity. It may factor into decisions about whether to locate or expand post-production facilities in Georgia.
Cost/benefit of rural counties: The extra 5% uplift for rural counties may prompt companies to weigh location decisions more carefully—balancing logistics vs. cost savings.
Minimum spend threshold: $500,000 is substantial but not out of reach for many post-production shops or aggregated projects; yet, smaller shops or short projects may still find it hard to meet. Clustering work or aggregation may be strategies.
For Attorneys & Tax Advisors:
Structuring deals and workflows to ensure expenditures qualify: Where things are done (where the invoices, servers, editors are located), whether vendors are in Georgia, how 1099/loan-out vs employee payroll is treated will matter.
Documentation: Maintaining clean recordkeeping for “qualified expenditures,” promotions, logo usage (if needed), rural location qualifications, etc.
Monitoring sunset language & legislative amendments: Since the credit is set to expire in 2031, there may be push/pull to extend, expand, or restrict. Attorneys should monitor bills, and possibly be involved in advocacy.
Transferability: While not always part of every credit scheme, knowing whether the credit is transferable (can be sold to other Georgia taxpayers) and under what restrictions will affect planning. (Georgia’s production credit already is transferable; how that interacts with the new post-production credit will be important.)
Risks & Open Questions
Legislative risk: Because the credit sunsets in 2031, long-term investment decisions carry risk; there’s also risk of modifications in thresholds or requirements.
Fiscal constraints: Georgia’s film credit programs are expensive. There is political pressure to balance incentive costs with return to the state. Legislators may tighten transferability, increase documentation burdens, or impose caps.
Competition: As other states increase incentives, Georgia must remain competitive in not only percentage rates but also in ease of use, predictability, and administrative burden.
Definition ambiguities: What exactly counts for rural counties (which counties qualify), what counts as “footage shot in Georgia” vs “post-production work in Georgia,” and how “qualified expenditures” will be interpreted by auditors.
What to Advise Clients Doing Now
If you are post-production companies, begin mapping current and planned work: how much spend you have in Georgia vs outside, and consider shifting more post-production work to Georgia if feasible.
Review contracts with vendors, staffing, facilities to ensure they will satisfy Georgia’s requirements (vendor location, payroll classification, etc.).
Consult tax counsel early: given the legal complexity (audit risk, documentation, transferability) you’ll want to make sure that everything from contract language to invoicing is well aligned.
Conclusion
The reinstatement of Georgia’s post-production tax credit marks a major development. It restores an incentive for work that had ceased to benefit as fully under earlier regimes and reflects Georgia’s recognition of how critical post-production, VFX and editing are to modern film/television workflows.
From a tax attorney’s point of view, this creates both opportunities and obligations. The opportunity is to structure things efficiently so clients can maximize credits; the obligation is to ensure compliance, documentation, and a forward-looking view given sunset dates and legislative dynamics.
If you’re in post-production—or advising production companies—it’s time to revisit investment plans, contracts, and business models. The landscape is changing, and Georgia may once again become even more attractive for creators doing the digital, editing and post work that often happens far from the cameras.
