Understanding Georgia Law on Lower Taxes for Film Production
So you want to film in Georgia! You’ve probably done your research. Now you’re considering this location for the tax benefits. Filmmakers can benefit greatly from the Georgia Entertainment Industry Investment Act. But what does this Georgia law on lower taxes for film production mean for those of us that are considering Georgia as a top film location? We dive into the details of the Georgia Entertainment Industry Investment Act. We’re answering all of the questions that filmmakers have on this interesting law.
What is the Georgia Entertainment Industry Investment Act?
This particular Georgia law on lower taxes for film production involves the largest tax credit to be offered by Georgia. It represents one of the most generous incentives for filmmakers in the U.S.
In fact, the Georgia Entertainment Industry Investment Act provides an estimated $915M in tax credits. These were generated in a single year in 2017. It continues to offer substantial reductions for those who bring filmmaking into the Peach State.
Additionally, the credit provides production companies that bring qualified expenses of $500K or more to the state with a 20% tax credit. And also offers an additional 10% bonus. It’s known as an “uplift”. Which brings the total tax credit for these productions to 30%.
Changes to the Georgia Law on Lower Taxes for Film Producers
Recent changes to the tax incentive law have caused some concern for filmmakers. They believe that new requirements for Audit and Certification will reduce the amount of filmmakers that can apply for and receive this lower tax incentive.
However, the law states that film producers can submit voluntary film production costs reviews. Which outline their total costs and provide, upon review of the application, a DOR certification. This will allow the producer to seek the tax credit upon completion of the production.
The DOR certificate allows the producer to place a claim against his or her Georgia income or withholding tax liabilities. And in many cases this will result in allowing the production company to grant or otherwise sell their certificate to other Georgia taxpayers for a discounted price.
When Must DOR Tax Credit Application Be Submitted?
Furthermore, the DOR Tax Credit Application for the Georgia Entertainment Industry Investment Act and associated Georgia law on lower taxes for film production requires submission by the production company.
Either on or after the effective date within one year of having state-certified production completion. In taking this step, the production company will enter a mandatory auditing period.
With which their initial credits will be validated and their DOR certification awarded.
In Summary
For film producers, understanding Georgia law on lower taxes for film production is an important step that must be taken. Which could result in up to 30% tax reduction for productions that have an expense of $500K or more in the Peach State.
