Georgia’s Entertainment Industry Investment Act provides a 20 percent tax credit for companies that spend $500,000 or more on production and post-production in Georgia, either in a single production or on multiple projects. If a company has little or no Georgia tax liability, it can transfer or sell its tax credits.

How do tax credits work for film?

California tax credit incentives California tax credits include: 20 percent tax credit on a feature film with a budget of $1-75 million or a miniseries with a $500,000 minimum budget. 25 percent tax credit for a TV series moving production from an existing state to CA. Budget: $1-10 million.

Does Georgia give credit for taxes paid to another state?

Georgia allows a credit for taxes paid to another state on income taxable to both Georgia and the other state. If the other state has not taxed the same income, a credit cannot be taken on the return. You will also be asked for the tax on the other state return. Again, this can be found on the other state return.

What is the highest percentage of tax credit a filmmaker can receive for filming in Georgia?

20%
The Georgia Entertainment Industry Investment Act (GEIIA) gives a 20% tax credit to companies that spend $500,000 or more in Georgia during production and post-production. This can include a single production or the total of multiple projects aggregated in a single tax year.

What tax form is filed with the Georgia Department of Revenue to effectuate a film credit transfer to a buyer?

Form IT- TrANS
The credit must be sold for a minimum of 60 percent of the credit amount and Form IT- TrANS (Notice of Credit Transfer) must be filed with both the Department of Economic Development and Department of revenue within 30 days of transfer or sale of the film tax credit.

Where can I buy film tax credits in Georgia?

On average, $1 of Georgia Film Tax credit can be purchased for $0.87 to $0.90. Taxpayers have the ability to purchase these credits retroactively for up to three years; however, the purchase price can vary depending on the timing of the purchase and the tax year in which the credit will be applied.

What is the benefit of tax incentives for film financing?

Film and television tax incentives are a method by which governments attract productions to come to their state or country, thereby boosting the local economy; productions hire local crew, and purchase and rent local goods from secondary institutions such as restaurants, car dealerships, and generator rental companies.

Can you sell a tax credit?

Tax credits are issued by the Federal government as well as U.S. State and territory governments, and thus can be applied against tax liabilities at either level. Tax credits are either transferrable, meaning they can be sold by the entity earning them and purchased by another, or nontransferable.

How does the Georgia film tax credit work?

Paying less on Georgia income tax. Getting a state tax deduction on Schedule A of your Form 1040 for the credits purchased. Part of this benefit is offset by including the spread as capital gain. Last year’s balance due can be paid the next year and avoid state underpayment penalties and interest.

How to get 20% transferable tax credit in Georgia?

For a project to be eligible for the 20% transferable tax credit, the Georgia Department of Economic Development (GDEcD) must certify the project. Certification for live action projects will be through the Georgia Film Office.

What are the benefits of Georgia tax credits?

There are three main benefits for purchasing Georgia Entertainment Credits: Paying less on Georgia income tax. Getting a state tax deduction on Schedule A of your Form 1040 for the credits purchased. Part of this benefit is offset by including the spread as capital gain.

How much is the entertainment tax credit in Georgia?

For example, you could purchase $20,000 of 2017 Georgia Entertainment Credits for $17,400 resulting in an immediate savings of $2,600. A Georgia taxpayer may purchase Georgia Entertainment Credits, generally for around $.88 per credit, and apply them to their current year or future tax returns.