California Governor Targets Georgia as Film Tax Credit Race Heats Up

Title: Louisiana’s Film Tax Credit Changes and Its Impact on Georgia

Last week, the Louisiana House of Representatives voted 87-12 to eliminate its film tax credit, which gives a rebate on production costs of 25%-40%. This broader tax bill also proposes to end credits for digital media production, sound recording, and renovating historic buildings. If the Senate and governor approve, these programs will cease on June 30, 2025.

In contrast, Georgia’s film tax credit has become the state’s largest business incentive. It has attracted major productions, including “Avengers: Infinity War” and “Red One,” starring Dwayne Johnson. The effect of Louisiana’s decision on Georgia’s film industry is uncertain. Historically, Georgia gained business when other states reduced their film incentives. Kelsey Moore, from the Georgia Screen Entertainment Coalition, noted that when states like Florida and North Carolina changed their programs, many productions and crews moved to Georgia.

However, J.C. Bradbury, an economics professor at Kennesaw State University, believes the impact may be minor due to differences in the tax credits. He argues that producers will choose where to film based on cost.

Louisiana’s decision comes as California enhances its incentives and European countries attract U.S. business with larger subsidies and cheaper labor.

Georgia no longer views Louisiana as its main competitor; it now competes with larger markets like the UK and Canada. Both states face similar market challenges, especially after recent strikes that reduced production spending in the U.S. and led to more filming overseas. For instance, AMC Networks shifted its series “Interview with the Vampire” from Louisiana to Prague for its second season.

In Louisiana, Simonette Berry, a labor union agent, highlighted that debates over film incentives mirror those in Georgia. This year, Georgia lawmakers proposed changes to limit tax credits that production companies can transfer.

As the film industry evolves, it may consolidate similar to other industries. Tim Halloran, a professor at Georgia Tech, noted that the market may favor a few dominant players, potentially sidelining smaller competitors.