Can Television Production Thrive with Tax Incentives?

Eligible projects for Georgia’s film tax incentives include feature films, television films, pilots, series, televised commercials, and music videos distributed outside of Georgia. A production company can meet the $500,000 minimum annual expenditure threshold with a single project or multiple projects aggregated within a single tax year. Notably, production companies don’t need to be incorporated in Georgia or have a Georgia bank account to qualify.

To be eligible for the 20% transferable tax credit, the Georgia Department of Economic Development (GDEcD) must certify the project. Applications for projects with budgets under $100 million must be submitted between 120 days before and 7 days after principal photography begins in Georgia. Projects exceeding $100 million require application submission between 180 days before and 7 days after filming starts. Ideally, applications should be submitted when a project is greenlit, fully funded, and ready for production.

A base certification letter at the 20% level is issued by the GDEcD once a project meets the criteria. Feature films, television films, pilots, series, and music videos receive an additional certification letter after distribution and fulfillment of the 10% Georgia Entertainment Promotion (GEP) Logo Uplift or Alternative Marketing Opportunity requirements. Amendments to the application must be submitted if filming doesn’t commence within 30 days of the certification letter.

The GEP Logo Uplift offers a 10% enhancement to the base 20% tax credit. Production companies can choose between embedding the Georgia logo in the final product and linking to www.georgia.org/film on the project’s website, or they can pursue pre-approved Alternative Marketing Opportunities of comparable value to the state. Commercial distribution in multiple markets within five years of the initial certification letter is mandatory. Both the logo and alternative marketing options must remain in place for the project’s lifespan, starting with any public screening.

The decision regarding the GEP Logo or Alternative Marketing Opportunities is made during the 10% GEP Logo Uplift application submission. Prior approval from the GDEcD is required for GEP Logo usage.

To secure the 10% uplift, a completed GDEcD-D Distribution form must be submitted electronically upon the project’s distribution. Qualified expenditures encompass materials, services, and labor, applying equally to Georgia residents and non-residents. A $500,000 salary cap per person, per production, exists for W2 employees. For loan-out, personal service contracts, or 1099 payments, Georgia income tax withholding and remittance are mandatory.

The film tax credit, applicable against Georgia income tax liability or withholding, can be sold or transferred to other Georgia taxpayers. Claiming the credit requires a mandatory audit after meeting the base investment requirement. These incentives can significantly reduce the cost of television production, making Georgia an attractive location for filming.