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Film Tax Credit for Productions
The mandatory film tax credit audit is based on the date the production was first certified by the Georgia Department of Economic Development (DECD) and the credit amount.
Productions certified by Georgia Department of Economic Development are generally described as feature films, series, pilots, movies for television, televised commercial advertisements, and music videos intended for multimarket commercial distribution. A production is required to spend a minimum of $500,000 in Georgia qualified expenditures to qualify for the film tax credit. Costs for pre-production, production, and post-production related to filming in Georgia are qualified expenditures.
The Georgia Department of Revenue is responsible for certification of the qualified production costs.
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Qualified Interactive Entertainment Credit
The Qualified Interactive Entertainment Credit is administered by the Georgia Department of Revenue. The Interactive Entertainment Credit shall not exceed $12.5 million for each taxable year. The maximum credit claimed for any qualified interactive production company shall not exceed $1.5 million.
A "Qualified Interactive Entertainment Production (QIEP) company" is a company primarily engaged in qualified production activities related to interactive entertainment which have been approved by the Georgia Department of Economic Development that:
- Maintains a business location physically located in Georgia
- Has a total aggregate payroll of $250,000 for employees working in Georgia
- Has gross income less than $100 million for the taxable year
- Spends at least $250,000 for qualified production activities
Once certification from the Georgia Department of Revenue is issued, the qualified Interactive Entertainment Production (QIEP) company applies for project certification from the Georgia Department of Economic Development.
Film Tax Credits
Film & Interactive projects created in Georgia may be eligible for a Georgia film tax credit.
The Georgia Entertainment Industry Investment Act provides a film tax credit for feature film, series, pilots, movies for television, televised commercial advertisements, and music video productions, and also for qualified interactive entertainment projects.
A project's eligibility for the film tax credit is administered by the Georgia Department of Economic Development. The Georgia Department of Revenue reviews a production's cost documentation and certifies the amount of the film tax credit.
To begin the process of requesting a film tax credit:
- Affirm the project has been approved and certified by the Department of Economic Development.
- Determine if a mandatory audit will be required.
- Decide if you are going to use an outside auditor in addition to the Georgia Department of Revenue.
Once the mandatory audit application is submitted, the designated individual on the application will be contacted within 3 business days regarding next steps to initiate the review.
How Do I … Apply for a Film Tax Credit?
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Obtain Project Approval & Certification
The ability to obtain the film tax credit is determined by the certification issued by the Georgia Department of Economic Development. Once approved by the Department of Economic Development a production should register with the Georgia Department of Revenue via the Georgia Tax Center for a loan-out withholding account and a income tax account.
FTC which do I use -
Determine if a Mandatory Audit is Required
To begin the process of obtaining a Film Tax Credit, a production takes the following steps:
- Incur a minimum of $500,000 in qualified costs.
- Determine if a Mandatory Audit is required for the project.
- Beginning January 1, 2023, all productions certified by the Department of Economic Development are required to provide information to obtain the film tax credit.
- Learn more about Required Mandatory Film Tax Credit Audit & Fees
- Between January 1, 2021 – December 31, 2022, productions that meet minimum credit guidelines are required to provide information to obtain the film tax credit. Check if you meet the minimum requirement.
- If you don't meet the minimum requirement, you may request a Voluntary Audit.
- Beginning January 1, 2023, all productions certified by the Department of Economic Development are required to provide information to obtain the film tax credit.
Submit Mandatory Film Tax Audit Application
Effective July 1, 2024 – All mandatory audit applications must be submitted through the Georgia Tax Center.
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Production Contacted to Begin Mandatory Audit
- Submit the mandatory application. The production will receive an email requesting payment of audit fees.
- Complete the payment. An auditor will be assigned and will reach out to the production to begin the audit.
- Conduct final review of the audit results. The Department of Revenue will review and address any audit issues.
- Finalized audit will result in the Department of Revenue issuing the Film Tax Credit Audit Final Certification letter stating the:
- total amount of qualified expenditures
- film tax credit amount
- film tax credit certificate number and
- tax year to be used by the production when reporting Film Tax Credit on the income tax return.
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Report Film Tax on Income Tax Return
After completing the Mandatory Film Tax Credit Audit process, a Film Tax Credit Certificate Number will be issued to the production company and must be reported on the production company’s income tax return.
- Transfer Film Tax Credit. Learn how to submit IT-TRANS using GTC.
Film Tax Credits for Production not required to undergo a Mandatory Audit
- Use GTC to submit preapproval.
- Instructions for Film Tax Credit Audit Application and Reporting.