State-by-state production incentives
Georgia
| Georgia | |
| Incentive Type | Transferable tax credit |
| Incentives Highlights | 20% transferable tax credit, plus an additional 10% tax credit for inclusion of GA promotional logo. |
| Eligible Projects | Films, television,pilots, series and commercials, music videos, games and new media |
| Minimum Spend | $500K |
| Production Cap or Annual Cap | $500K cap per W-2 hire, no salary caps for Form 1099 hires or loan-out corporations. |
| Application/Reporting Requirements | Tax return must be filed. |
| Loan-Out Reg Required? | No |
| CPA Audit? | No, but strongly recommended. |
Georgia Film, Music & Digital Entertainment Office
Lee Thomas, Film Director
lthomas@georgia.org
t: (404) 962-4048
f: (404) 963-4053
www.georgia.org/GeorgiaIndustries/Entertainment/
The Georgia Entertainment Industry Investment Act grants a tax credit for qualified production and post-production expenditures. It is available for motion picture projects such as feature films, television series, commercials and music videos, and also to new industries such as game development and animation.
The legislation provides a transferable tax credit of 20% for instate expenditures, with an additional 10% tax credit available if an approved placement of a Georgia promotional logo is featured in opening titles or end credits as well as within all promotional trailers or alternative negotiated placements. The tax credits are issued after the production company f les its Georgia tax return. Any amounts in excess of $500,000 per W2 hire will not count toward the credit, although there is no salary cap on individuals receiving Form 1099 working under a personal services contract or as a “loan-out”. Workers compensation and payroll processing qualify only if paid to a local vendor. Most fringes are qualified expenses. Airfare qualifies if a Georgia headquartered travel agency or airline is used. Georgia has a substantial crew base, equipment rentals and services, a 35mm lab, soundstages, and significant post-production services.
The tax credits may be transferred or sold only once to one or multiple Georgia based taxpayers to use against their tax liability, but transfers may now be on different dates. Georgia requires productions to file a state tax return, and tax credits are usually sold after CPA audit/ comfort letter is issued. Various local brokers can assist with the sale of the credits, and may provide cash advances as well. Should the state have reason to void a credit due to fraudulent misrepresentation of tax information, the buyer’s recourse will be to/against the seller. The regulations regarding production (buying) service companies have been changed. Out-of state purchases will only qualify if obtained from a local vendor who rents or sells like items. Goods ordered from companies in the business of purchasing from out-of state, which do not operate a rental or sales business, and do not maintain an inventory, will not qualify for the film tax credits.