- Type of Incentive
- 20–30% Transferable Tax Credit
- Maximum Benefit
20% transferable base investment tax credit (30% maximum with bonus) for production companies and qualified interactive entertainment production companies.
Bonus: 10% uplift for including required Georgia promotional logo/end title credit (commercials are not eligible for the bonus).
- Compensation and Project Caps/ Funding Per Year
Program is administered on a first-come, first-served basis.
Annual Cap: No caps for production companies. Program funding caps for qualified interactive entertainment production companies and their affiliates with tax years beginning during 2013 ($25M), 2014 ($12.5M), and 2015 ($12.5M).
Project Cap: No project caps for production companies. Cap per qualified interactive entertainment production company/affiliates with tax years beginning during 2013 ($5M), 2014 ($1.5M), and 2015 ($1.5M).
Comp Cap: $500K per salaried employee paid by W-2. No salary cap if payments are subject to 1099 reporting (e.g., personal services contract, loan- out company payments).
- What Qualifies
Generally, preproduction, production, and post-production expenditures incurred in GA that are directly used in a qualified production activity, including, but not limited to compensation to residents and non- residents, loan-out companies subject to income tax withholding, and payments to local vendors. Non-Qualifying Costs include but are not limited to post- production expenditures for footage shot outside GA, marketing, story rights, or distribution. Payroll handling fees and workers' compensation insurance qualify if using EP's payroll services because EP has a Georgia office at EUE/Screen Gems Atlanta.
- Application Considerations
Production company is required to register for withholding. Submit initial applications no sooner than 90 days before principal and ongoing photography commences (response = 3-5 days).
- Application Considerations
Tax credits are typically sold or assigned to an entity that is subject to Georgia corporate or personal income tax. A buyer of a Georgia
tax credit will ask for an AUP report or certificate issued from a Department of Reveue (DOR) voluntary audit to verify credit amount. Regardless if Georgia tax credits are sold or assigned, the production company must report the tax credit by filing a Georgia income tax return, along with properly completed Form IT-FC and supporting schedules. Otherwise, the Georgia DOR will not consider the tax credit valid until tax credit is properly reported with the tax return.
Transfer Considerations: One transfer to one or more transferees. Generally, tax credits that are verified through the Georgia DOR voluntary audit are more marketable than credits verified through a CPA agreed-upon-procedures review (AUP). Georgia DOR requires a production to submit an application and deposit of $5K to $20K, depending on production costs, to be on queue for the voluntary audit. Georgia DOR may recapture film tax credits from an assignee or transferee, so factors affecting pricing for film tax credits could depend on how the credit was verified (Georgia voluntary audit vs. CPA AUP review) and if the production company is financially sound and/or the tax credit has a viable guarantor.
Carry Forward: 5 Years.
- Loan-Out Company Considerations
Registration: Refer to regulations issued regarding registration requirements for
production companies and loan-out companies.
- Crew Base Considerations
7,300 crew members deep statewide. Georgia is a right-to-work state.
- Is Mappable
- Has Incentive Program
- You Should Know
Failure of a loan-out company or its employees to comply with any registration, filing, or reporting obligation imposed by Georgia law shall not affect the film tax credit claimed by the production company or qualified interactive entertainment production company.
*Hotel state tax only exempt on the 91st consecutive day of stay.
- EPPS Address
175 Lakewood Way #316
Atlanta, GA 30315
Open Monday - Friday 9:00 am to 6:00 pm by appointment and outside normal office hours by special appointment.
- TCP Available
- Screen Credit Required
- Project Criteria
Minimum spend = $500K. A production company or qualified interactive entertainment production company can aggregate projects over a single tax year to meet the $500K spend requirement (television series, series pilot, or television movie is considered a single television project; for episodic television series, an entire season of episodes is one project).
Georgia Film, Music, and Digital Entertainment Office www.georgia.org/industries/entertainment/production-incentives/
Lee Thomas, Director | Phone: 404.962.4048 | firstname.lastname@example.org
- Sales and Use Tax Exemption
- Post Facilities
- Water Tank
- Big City
- Historical Architecture
- In-State Vendors
- Out-of-State Vendors
- Fringes Paid
- Taxes Paid
Qualified Compensation Expenditures
- Award Shows
- Feature Films
- Game Shows
- Interactive Media and Video Games
- Music Videos
- Reality Shows
- Scripted Shows
- Sporting Events
- Talk Shows
- Visual Effects
- O.C.G.A. §48-7-40.26
These materials have been prepared by Entertainment Partners for informational purposes only and should not be construed as tax advice or relied on for specific projects. Though every effort has been made to remain current, laws and incentives change and, therefore, this information may have been revised. Please contact EP Financial Solutions or your legal or tax advisors to confirm any laws or the effect of incentives on your project.
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