Georgia Film Tax Credits
Overview of Georgia Film Tax Credits
The State of Georgia implemented the Georgia Entertainment Industry Investment Act (the “Act”) in 2008 to encourage economic development. The Act incentivizes production companies to locate their production activities in Georgia by offering a transferrable entertainment tax credit to the production company up to 30% of their qualified expenditures. These tax credits are transferable (only once) to any taxpayer (individual or corporation) with a Georgia income tax liability.
In 2008, Governor Perdue and the Georgia state legislature passed the Georgia Entertainment Industry Investment Act that provides a 20 percent tax credit incentive for production companies that spend $500,000 or more on qualified expenditures, which includes materials, services and labor on production or post-production costs in Georgia. The state also grants an additional 10 percent tax credit if the finished project includes a promotional logo provided by the state of Georgia.
Film and entertainment companies who produce films, television series, music videos, commercials, animation and games in Georgia are qualified to receive the tax incentive. Production companies can either use the tax credit themselves to offset their own taxable liability or they can sell the tax credit to any Georgia taxpayer.
This tax incentive is a one-time transferable tax credit that any Georgia taxpayer (individuals, corporations, trusts, & estates) can use to off-set 100% of their Georgia state taxable obligation at a discount. There are no caps or limitations that restrict the application of the tax credit.