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Last Updated: February 5, 2008 |
Home > 2005
Legislation > Georgia Entertainment Industry Investment Act Fact Sheet
- This new program offers a base tax credit of 9% with uplifts based on Georgia job creation, expenditures in Tier 1 and 2 counties and for multiple television projects by a single production company.
- The foundation of the Act is a 9% investment tax credit. Production companies that spend a minimum of $500,000 in the state on qualified production and post production expenditures in a single year are eligible for this credit. This includes most materials, services and labor. The 9% credit applies to both residential and out-of-town hires with a salary cap of $500,000 per person per production.
- The Act will award additional tax credits of 3% for all Georgia residents hired by the production. In effect, producers receive a tax credit equal to 12% for all qualified Georgia labor -- the base tax credit of 9% plus a bonus of 3% for Georgia hires.
- The Act will award additional tax credits of 3% in addition to the 9% base investment tax credit for expenditures in Tier
1 and 2 Georgia counties (97 KB : PDF). Typically, these underdeveloped counties are outside of metro Atlanta with the exception of Fulton and Clayton counties.
- For companies with multiple television projects that spend in excess of $20 million in qualified expenditures in Georgia within a single year, the Act will award tax credits of 2% in addition to the 9% base investment tax credit.
- Eligible productions include feature films, television movies, pilots or series, commercials, music videos and certain interactive projects.
- Commercials and music videos are eligible for the tax credit once the production company has spent a minimum of $500,000 on qualified expenditures during a single year. This may be through a single project or multiple projects.
- The tax credits apply to the company's Georgia tax liability. Should the company have limited or no Georgia tax liability, then these credits may be transferred or sold once to one or multiple Georgia-based companies to use against their tax liabilities.
- In addition to feature film and television production, the Act also includes other areas of entertainment industry development including next generation film production, animation, interactive entertainment and game development.
- Productions may also qualify to take advantage of Georgia's sales and use tax exemption, a point-of-purchase sales tax exemption that saves you up to 8% on most purchases and rentals in the state.
- The legislation is retroactive to January 1, 2005.
Please contact the Georgia Film, Video & Music Office of the Georgia Department of Economic Development at 404-962-4052 or via email at film@georgia.org for more information.
Source: Georgia Film, Video & Music Office
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