Walt Disney Co. will boycott filming in Georgia if the US state signs a 'religious liberty' bill that enables faith-based organisations to sack employees on the grounds of sexuality.
The controversial bill, known as the First Amendment defence Act, also allows state officials to eschew conducting same-sex marriages based on their personal belief.
The bill passed Georgia's legislature and is now on the desk of Governor Nathan Deal to enact or veto.
Disney, of which Marvel Studios is a subsidiary, labelled the pending legislation "discriminatory" and said it would cease operating in the southern state if enacted by Gov. Deal.
The California-based movie giant has previously taken advantage of local tax incentives in Georgia to film movies such as Ant-Man and Captain America: Civil War in Atlanta.
"Disney and Marvel are inclusive companies, and although we have had great experiences filming in Georgia, we will plan to take our business elsewhere should any legislation allowing discriminatory practices be signed into state law," a Disney spokesman said.
Motion Picture Association of America senior vice president Vans Stevenson also called on the governor to veto the legislation.
"We are confident that Governor Deal will not allow a discriminatory bill to become law in Georgia," Stevenson told Variety.
AMC Networks, who film the hit show The Walking Dead in Georgia, also called on Gov. Deal to reject the "divisive legislation".