Entertainment and taxes rarely come up in the same conversation. But when it comes to the state of Georgia, they are a great opening act for a rapidly growing industry. At a time many states are eliminating or scaling back their film industry tax credits, Georgia has one of the most competitive incentive programs in the country.
The industry’s direct economic impact in Georgia nearly doubled from $132.5 million in 2007 to $260.4 million in 2008, the year the General Assembly passed legislation offering tax credits of up to 30 percent to companies producing feature films, television series, music videos or commercials in Georgia. That growth has continued at an exponential rate to $933.9 million in direct economic impact by the end of 2013.
Georgia’s Entertainment Industry’s Investment Act provides a 20 percent transferable tax credit to companies that spend a minimum of $500,000 or more on production and post-production in in Georgia. Another 10 percent tax credit is available if the finished product includes a promotional logo provided by the state.
If the production company has little or no Georgia tax liability, it can transfer or sell its tax credits to anyone who has a tax liability to the state of Georgia including individuals, corporations, trusts, partnerships, and LLCs.
For more information on production incentives in Georgia’s film, music and digital entertainment industries, visit Georgia Production Incentives. To learn more about tax planning strategies from Smith & Howard, follow our link or call us at 404-874-6244.