GEC-The Players

THE ACT

HIGHLIGHTS

Save up to 30% in GA

The 2008 Georgia Entertainment Industry Investment Act (The Act) upgraded the original 2005 version and provides for a 30% gross tax credit on qualified Georgia production expenditures.

20% Base Credit

The foundation of The Act is the 20% transferable base tax credit for all qualified Film, Television, Commercials, Music Videos, Interactive Games and Digital Entertainment.

10% Credit Uplift

The Act provides for an additional 10% transferrable tax credit uplift (for a total 30% gross transferrable tax credit) if a production company includes the approved Georgia promotional logo (shown above) in the qualified finished feature film, TV series, music video or interactive game project. Commercials and music videos are not eligible for this uplift.

$500K Minimum Qualified GA Spend

Production companies that spend a minimum of $500,000 in the State of Georgia on single or aggregated productions over a calendar or fiscal year on qualified preproduction, production and post-production expenditures are eligible for this credit. This includes most materials, labor and services.

Materials and equipment purchased or rented by non-Georgia pass through entities will not be considered as qualified Georgia expenditures.

No Residency Requirements

The Georgia tax credit applies to both residential and out-of-town labor working in Georgia.

$500K Salary Cap on W2 Hires

There is a salary cap of $500K per person, per production, when the employee is paid by “salary,” which is defined as being paid by W2. This includes standard fringes.

No Cap on 1099 Hires

If the production company uses a 1099 or personal services contract to hire an individual there are no limits. This also includes standard fringes.

No Limits on GA Spend

There is no cap on a qualified Georgia production spend.

No Sunset Clause

The Georgia Legislature has not created a sunset provision for any portion of The Act.

Transferrable Tax Credits

The tax credits apply to the originating production company’s Georgia income tax liability or it’s withholding liability. Should the company have limited or no Georgia income tax liability, then the credit may be sold and transferred once to one or multiple Georgia-based taxpayers to use against their state income tax liabilities. Withholding is NOT currently transferrable to third party buyers.

Carry Forward

Earned Georgia Entertainment Tax Credits can carry forward up to five years from the year of production certification and verification, but may not be applied retroactively to year’s prior.

Sales & Use Tax Exemption

Additionally, productions may qualify for a separate Georgia Sales and Use Tax Exemption, a point-of-purchase exemption that saves up to 8% on most purchases and rentals in the state. There is no minimum spend threshold for this tax benefit.

Infrastructure Investment Tax Credits

Currently, Georgia does NOT offer tax credits for entertainment infrastructure investment.

THE ACT LINK


	THE ACT HIGHLIGHTS Save up to 30% in GA The 2008 Georgia Entertainment Industry Investment Act (The Act) upgraded the original 2005 version and provides for a 30% gross tax credit on qualified Georgia production expenditures. 20% Base Credit The foundation of The Act is the 20% transferable base tax credit for all qualified Film, Television, Commercials, Music Videos, Interactive Games and Digital Entertainment. 10% Credit Uplift The Act provides for an additional 10% transferrable tax credit uplift (for a total 30% gross transferrable tax credit) if a production company includes the approved Georgia promotional logo (shown above) in the qualified finished feature film, TV series, music video or interactive game project. Commercials and music videos are not eligible for this uplift. $500K Minimum Qualified GA Spend Production companies that spend a minimum of $500,000 in the State of Georgia on single or aggregated productions over a calendar or fiscal year on qualified preproduction, production and post-production expenditures are eligible for this credit. This includes most materials, labor and services. Materials and equipment purchased or rented by non-Georgia pass through entities will not be considered as qualified Georgia expenditures. No Residency Requirements The Georgia tax credit applies to both residential and out-of-town labor working in Georgia. $500K Salary Cap on W2 Hires There is a salary cap of $500K per person, per production, when the employee is paid by “salary,” which is defined as being paid by W2. This includes standard fringes. No Cap on 1099 Hires If the production company uses a 1099 or personal services contract to hire an individual there are no limits. This also includes standard fringes. No Limits on GA Spend There is no cap on a qualified Georgia production spend. No Sunset Clause The Georgia Legislature has not created a sunset provision for any portion of The Act. Transferrable Tax Credits The tax credits apply to the originating production company’s Georgia income tax liability or it’s withholding liability. Should the company have limited or no Georgia income tax liability, then the credit may be sold and transferred once to one or multiple Georgia-based taxpayers to use against their state income tax liabilities. Withholding is NOT currently transferrable to third party buyers. Carry Forward Earned Georgia Entertainment Tax Credits can carry forward up to five years from the year of production certification and verification, but may not be applied retroactively to year’s prior. Sales & Use Tax Exemption Additionally, productions may qualify for a separate Georgia Sales and Use Tax Exemption, a point-of-purchase exemption that saves up to 8% on most purchases and rentals in the state. There is no minimum spend threshold for this tax benefit. Infrastructure Investment Tax Credits Currently, Georgia does NOT offer tax credits for entertainment infrastructure investment. THE ACT LINK