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.
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.