Highlights of the 2008 Georgia
Entertainment Industry Investment Act
- The Act incentivizes four major entertainment segments, including film & TV, commercials, music videos and interactive gaming.
- Producers are able to get a 20% credit if their project spends a minimum of $500,000 in the state of Georgia.
- The ‘spend program size’ is unlimited, can include production & post production expenditures, as well as most materials and services.
- The credit is eligible to be applied towards both Georgia residents and out-of-town hires.
- Producers can also receive an additional 10% credit if the production company includes a Georgia promotional logo in the qualified finished feature film, TV series, music video or video game project.
- The state also offers producers the opportunity to take advantage of the Sales and Use Tax Exemption, offering a sales tax exemption that can save productions up to 8% on most purchases and rentals within the state of Georgia.
Initially, production companies submit the budget and get pre-approved by the state. Once production is completed there is no verification by Georgia, as to the amount of the credit. At this point a CPA firm must perform testing and issue a comfort letter on the credits. These credits can be used to offset 100% of Georgia tax liability. However, many production companies do not need the credits, since they don’t have Georgia taxable income and elect to make a transfer of their credits. These credits can be sold to single or multiple buyers and can be carried forward 5 years.