THE INCENTIVES PROGRAM - TIP

On April 15, 2025, Governor Brian Kemp signed House Bill 111 into law, thereby reducing the tax imposed on individuals to 5.19%. The withholding rate on payments made to loan out companies for services provided in Georgia is tied to the individual tax rate. As a result, effective July 1, 2025, all payments made to loan out companies will be subject to 5.19% withholding.

This Act will become effective on July 1, 2025, and be applicable to all taxable years beginning on or after January 1, 2025.

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On May 12, 2025, Governor Brian Kemp signed House Bill 475 into law, thereby amending the Georgia Entertainment Industry Investment Act, as follows:

• Revises the definition of “qualified production activities” to specifically:
  • Include productions intended for distribution via:
    • Paid subscription based platforms;
    • Free advertiser supported streaming television channels;
  • Exclude:
    • Projects recorded on laser disc;
    • User-generated content distributed exclusively via social media platforms; and,
• Allows the Department of Economic Development to charge reasonable fees associated with the certification process.

This Act will become effective on January 1, 2026, and apply to taxable years beginning on or after such date.

On February 6, 2025, Governor Andrew Beshear signed House Bill 1 into law, thereby reducing the individual income tax rate to 3.5% of net income beginning on or after January 1, 2026. The withholding rate on payments made to loan out companies for services provided in Kentucky is tied to the individual tax rate. As a result, as of January 1, 2026, all payments made to loan out companies in Kentucky will have 3.5% Kentucky state withholding.

On May 2, 2025, Governor Glenn Youngkin signed House Bill 1600 into law, thereby appropriating $4 million for fiscal year ending 6/30/2026 to the Governor’s Motion Picture Opportunity Fund.