Georgia Film and Television Tax Benefits & Incentives FAQ

GA Film Tax Credit

Georgia Film and Television Tax Benefits & Incentives FAQ

 

What is it?

The Georgia Film, Television and Digital Entertainment tax credits will credit up to 30 percent and create substantial cost savings for companies producing qualified feature films, television series, music videos and commercials, as well as interactive games and animation.

Georgia’s Entertainment Industry Investment Act provides a 20 percent base tax credit for companies that spend $500,000 (one of the lowest minimums in the country) or more on production and post-production in the state of Georgia, either in a single production or on multiple projects.

The state grants an additional 10 percent uplift tax credit if the finished project includes a promotional logo provided by the state. Logo stipulations are dependent on the type of media that you are producing. 

 

STATE TAX CREDIT BENEFITS OUTLINE

Highlights from the Georgia Entertainment Industry Investment Act include the following:

  • 20 percent base transferable tax credit
  • 10 percent Georgia Entertainment Promotion (GEP) uplift can be earned by including an embedded Georgia logo on approved projects
  • $500,000 minimum spend to qualify
  • No limits or caps on Georgia spend, no sunset clause
  • Both resident and non-resident workers’ payrolls and FICA, SUI, FUI qualify
  • No salary cap on individuals paid by 1099, personal service contract or loan out. Payments made to a loan out company will require six percent Georgia income tax withheld
  • Production expenditures must be made in Georgia to qualify from a Georgia vendor
  • Travel and insurance qualify if purchased through a Georgia agency or company
  • Original music scoring eligible for projects produced in Georgia qualify
  • Post production of Georgia filmed movies and television projects qualify if post done in Georgia
  • Development costs, promotion, marketing, license fees and story right fees do not qualify

 

Where We Come In! 

  • How do I submit my forms to get my production qualified for the tax incentive?
    • For all feature films and television projects to be considered for approval, film and television production companies or studios must submit a completed certification application with a shooting script not earlier than ninety (90) days prior to the Principal Photography Start Date but before the completion of principal photography. Producers of Interactive Entertainment products and services must submit a synopsis of each project along with a certification application not earlier than ninety (90) days before the beginning of Interactive Entertainment production. Music video producers must submit song lyrics and a basic outline of the storyline elements along with a completed certification application not earlier than thirty (30) days prior to the scheduled Principal Photography Start Date. Commercial production companies must submit a listing of the television commercial(s) being produced and a completed certification application(s) not earlier than (30) days prior to the Principal Photography Start Date. 
    • For projects that are not completed within the applicant’s tax year (fiscal year or calendar year), a new project certification must be applied for each successive tax year. A Certification Letter must be obtained for each project for each year that tax credits are claimed. This rule applies to all multi-year entertainment productions that qualify for the Tax Credits including, but not limited to, Feature Films, Series, other television productions, and Interactive Entertainment Products. 
    • All projects must be fully funded and have an existing Multimarket Commercial Distribution contract, or intend in good faith to seek such distribution outside the State of Georgia, in order to qualify for the Film Tax Credit. Qualified distribution includes international, national or regional distribution via broadcast television, satellite television, cable television, movie theaters, video on demand, retail outlets, streaming, home video, online video game subscription distribution, DVD sales and distribution, or an advertiser supported website. 
  • The production company shall be allowed a tax credit equal to 20 percent of the base investment in this state.”
    • This portion of the Tax Credit is applicable to our goods and services as long as they meet the guidelines for qualified production activity
  • “The production company shall be allowed an additional tax credit equal to 10 percent of such base investment if the qualified production activity includes a qualified Georgia promotion.”
    • If the producers of movie content, television content, music video content or interactive game content opt to include the GEP Logo in their project and a link to http://www.exploregeorgia.com/film in the promotional website as outlined in O.C.G.A. §48-7-40.26, GDEcD will make available various versions of the GEP Logo and the link to each qualified GEP Tax Credit applicant at no charge. 
    • This portion of the Tax Credit is not applicable to us. Please contact the person below for any questions
      • Alison Fibben - Georgia Film, Music & Digital Entertainment

Georgia Department of Economic Development

75 Fifth Street N.W., Suite 1200 Atlanta, Georgia 30308

Phone: 404.962.4050

E-Mail: afibben@georgia.org

 

  • A $500,000 minimum must be spent to qualify for the Tax Credits
    • To qualify for any of the Georgia Tax Credits you must spend a minimum of $500,000 total on the production and on QUALIFIED goods and services that must be directly used in QUALIFIED production activity.
    • The purchased or rented goods and services must come from a QUALIFIED vendor
  • What counts as qualified production activity?
    • Pre, Current, and Post Production Work directly relating to the current in-state production. Given that the production is in line with current regulations to qualify for the tax credit. (Storyboard Development, Film and Audio Recording, Set and Grip Operations, Stunts, Props, Visual/Creature/Mechanical/Special Effects, ect.)
  • What are the qualified goods and services?
    • Goods such as: Camera Purchase/Rental, Lens Purchase/Rental, Electrical and Grip Purchases/Rentals (Cables, Rigging, Lighting, Sandbags, ect.)
    • Services such as: Camera and Gear Repair, Camera and Gear Consulting, Delivery and Driver Fees
    • Again, it must be for qualified production activity
  • All purchases and rentals of tangible personal property used in the production must be from a qualified Georgia Vendor as defined by regulation 560-7-8-.45
    • We specialize in camera gear sales and rentals
    • We are a qualified Georgia Vendor 
  • All services that are not provided at the filming sight must be Provided by a Georgia vendor as defined by regulation 560-7-8-.45
    • We are on/off site consultants for cameras and gear
    • We are a qualified Georgia Vendor
  • Why does everything have to be qualified or through a qualified vendor?
    • To ensure that that the money spent on productions filming in Georgia actually benefit the state itself. Before the state applies the tax credit to your production, they need to see that you are qualified and following proper procedure before you receive the credit.
  • Things that Are NOT Covered by the Tax Credit:
    1. Live or prerecorded broadcast of athletic events; 
    2. Live or prerecorded news or current affairs programs; 
    3. Local talk shows or other local interest programming not intended for Commercial Multimarket Distribution;
    4. Interview or talk shows;
    5. Projects and content consisting solely of footage not shot recorded, or originally created in Georgia;
    6. Website development;
    7. Corporate marketing, industrial, or training productions;
    8. Any productions in violation of Title 16 Chapter 12 of the state’s Obscenity Statute 
    9. Sole platform arcade video games;
    10. Small scale games embedded and used exclusively in advertising, marketing and promotional websites or microsites;
    11. Infomercials, Infotainment, or Solicitation-based productions;
    12. Certain instructional or how-to-video based content and programming, as determined by GDEcD 
    13. Political or Editorial-based content programming;
    14. Any expenditure made or incurred outside the state of Georgia, and projects that do not meet the requisite base investment requirement;
    15. Marketing or political campaigns;
    16. Internet sites and digital media projects that do not meet all of the defined requirements of Interactive Entertainment; interpersonal communications services such as video conferencing, wireless telecommunications, text-based channels, chat rooms, or broadcast/streamed viewing enhancements. 
    17. Live concerts;
    18. Projects created for a limited audience, including, but not limited to museum presentations;
    19. Live presentations; and
    20. Film or program intended primarily for industrial, corporate or institutional end-users. 

 

For any additional questions, comments, or concerns about this specifically please visit 

http://www.georgia.org/wp-content/uploads/2017/10/GDECD-Proposed-Film-Rules.pdf

as it is an official Georgia Department of Economic Development document explaining in detail the terms and statutes of the Film Tax Credit. 

 

To see how we stack up against other states in terms of Tax Incentives visit 

http://www.filmproductioncapital.com/taxincentive.html

 

For any additional questions, comments and concerns about our company and what we do please feel free to Contact us directly and we will help you with anything you may need. 

Was this helpful? You said "Yes" You said "No" Yes |  No (50% of other people think it was helpful)