‘Hollywood of the South’ loses Marvel productions to UK

Georgia has built a reputation as the “Hollywood of the South,” fueled by lucrative tax incentives and a surge of studio development around Atlanta. But one of its biggest anchors, Marvel Studios, is shifting much of its production overseas.

The company, which has filmed blockbusters such as “Black Panther: Wakanda Forever” and “Spider-Man: Homecoming” in Georgia, will move operations to the United Kingdom, according to The Wall Street Journal.

Why is Marvel leaving?

The reason, insiders say, comes down to money. Labor costs are less expensive in the U.K., and universal health care means studios do not have to subsidize workers’ medical expenses.

Marvel’s exit is expected to deliver a blow to Georgia’s film economy. The Georgia Department of Economic Development reported productions spent more than $11 billion between fiscal years 2022 and 2024.

Local businesses near studios in Georgia are already feeling the sting. Owners told WXIA-TV in Atlanta that foot traffic from casts and crews has dropped as fewer projects are being picked up.

Georgia’s tax credit system

For years, states like California, New York and Georgia have competed with tax credits to keep productions at home. However, many argue it is still cheaper to film overseas.

Film analyst Stephen Follows found that about one-third of top-grossing films from 2000 to 2019 were shot outside the U.S. The “Harry Potter” series was filmed almost entirely in the U.K., while “Avengers: Endgame” filmed scenes in London despite its Georgia base.

Georgia offers some of the strongest tax incentives in the U.S. The program includes a 20% base transferable tax credit and an additional 10% for projects that provide promotional value to the state. Importantly, there is no cap on the number of credits awarded annually.

A new tax credit for stand-alone film and television postproduction companies is set to take effect next Jan. 1. 

Georgia’s film industry

Between July 1, 2023, and June 30, 2024, Georgia hosted 273 productions, including 25 feature films.

Trilith Studios, just outside Atlanta, spreads across 700 acres with more than 30 soundstages and a high-tech virtual production stage. The complex became home to some of Marvel’s biggest titles.

Tyler Perry Studios covers 330 acres in southwest Atlanta, housing standing sets and expanding steadily since its founding in 2006. Other well-known facilities include Shadowbox Studios and Athena Studios, both contributing to the state’s reputation as a film production hub.

While studios themselves do not benefit directly from the tax credits, they provide infrastructure and jobs that boost the industry. Business Facilities Magazine ranked Georgia No. 1 in film production in August 2024.

Lee Thomas, director of the Georgia Film Office, said last year that the state’s mix of incentives, facilities, diverse locations and deep crew base continues to offer world-class opportunities.