GEORGIA HOUSE AND SENATE PASS GEORGIA MUSIC INVESTMENT ACT
HB-155 AWAITS SIGNATURE OF GOVERNOR NATHAN DEAL
Georgia Music Partners (GMP) is very pleased to announce that the Georgia Music Investment Act – HB-155 – passed the Georgia General Assembly at 11:58 PM on the last day of the session.
This is a significant milestone: The first-ever targeted incentive specifically for music in Georgia. GMP and the Recording Academy Atlanta Chapter have been advocating on behalf of Georgia’s diverse music industry for over seven years.
We are extremely proud of uniting the industry around this important legislation. HB-155 now goes to Governor Nathan Deal’s desk for his signature.
HB-155 specifics: Beginning in 2018, a 15% refundable tax incentive will be offered for projects recorded or scored in Georgia and for tours that rehearse and start in the state. To qualify, a production company must meet a minimum threshold of $500,000 for live performance rehearsals, $250,000 for stand-alone scoring projects (aggregate in a year) and $100,000 (aggregate in a year) for recorded music performances. In addition, if the production takes place in lesser developed Tier 1 and Tier 2 counties, it can qualify for the additional 5 percent credit.
What is House Bill 155?
HB 155, also known as the Georgia Music Investment Act, was designed to retain, create and grow thousands of music jobs in Georgia.
Why do we need it?
For over 80 years Georgia Grown Musical Talent has contributed billions of dollars, year after year, to the state’s economy. It’s time for music to receive the recognition it deserves and an investment from our state that has benefited so greatly from its diverse talent.
Film/TV and Video Game Developers have experienced growth and success with the targeted tax incentives for their industries.
HB-155 lifts ALL aspects of the music industry; recording, scoring, and live productions. In its entirety it will attract projects that can help rebuild Georgia’s music ecosystem.
HB-155 focuses on 3 major initiatives
1) Live Productions
The bill will attract touring productions by incentivizing them to audition, rehearse, and begin their tours in Georgia. They will receive a 15-20% tax credit if they spend over $500,000 in Georgia.
How does this help me? These touring operations hire hundreds of crew, staff, techs, and other team members. Their benefits increase if they hire Georgia residents. We’ve seen how this has worked successfully within the film industry. The large film studios get the tax credit but it is creating thousands of job opportunities for Georgia actors, PA’s and supporting businesses.
There is a 15-20% tax credit for all projects recorded in Georgia that spend a minimum of $100,000 (aggregate in a year). The goal here is to attract bigger budget projects or multiple projects by labels, artists, publishers, and production development teams.
How does this help me? By allowing these projects to be aggregated, we will be attracting multiple projects by the same companies. This will help us develop the relationships, which, will only strengthen once they realize the talent of Georgia’s producers, engineers, musicians, and music businesses. Our reputation will only continue to grow allowing studios to bill more time and hire more staff.
On average, music is 5% of the production budget for film and TV. With video games, it can be even more. There is a 15-20% tax credit for all projects recorded in Georgia that spend a minimum of $250,000 (aggregate in a year). Video game music and scoring projects are increasing in size and scope. Georgia is in a unique position with its 16 talented symphonies, strong music, film and video game industries to capitalize on this opportunity. This portion of the bill will create jobs ranging from orchestral to session musicians, composers, studio owners, producers, and countless others.
How was this new bill created?
GMP has been working for years to create legislation that will bolster our music industry, create jobs for our graduates and resident talent, and make Georgia the the entertainment capitol of the world. Music has been a part of our states history and contributed more than film has over the years. We studied incentives that have been successful in other states and countries and led the initiative for the Joint House and Senate Music Study Committee.
Currently, we have seen a decline in attracting these projects to Georgia as other states have more supportive partnerships with businesses, industry, local and state governments, to build strong infrastructures – states such as Tennessee and Texas. Furthermore, these projects are going to states that have incentives already in place such as Louisiana or New York.
Music = Jobs. Passing HB-155 in its entirety will create new job opportunities for all.
GMP is an all-volunteer organization. Every penny donated goes toward our efforts to pass HB155.
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