the georgia post-production tax credits

THE TAX CREDIT EXPLAINED

Georgia law provides for a “stand alone” post-production tax credit that may be claimed by post-production companies (O.C.G.A. § 48-7-40.26A).  Under this program, companies engaged primarily in post-production activities can claim a transferable income tax credit up to 35% of qualified post-production expenditures incurred in Georgia.  For companies that have $250,000 or more in payroll expenses (meaning W-2 wage expenses) in Georgia in the current tax year, the base credit is 20% of qualified post expenditures.  If the post expenses are related to original footage shot in Georgia, then an additional 10% credit may be claimed.  Finally, if the post expenses are incurred in a tier 1 or tier 2 less developed county in Georgia, an additional 5% credit may be claimed (https://www.georgia.org/sites/default/files/2019-10/tax_credit_map.pdf).  

 

In order to qualify the post-production company must meet a minimum spend threshold of $500,000.  Credits claimed may not exceed the company’s payroll expenses for any given year.  There is a $10 million annual program cap (once this amount of credits are claimed in a given year, no more credits will be awarded).  Credits may be claimed against income tax, flowed through to the owners of an s-corporation, LLC or partnership for individual use, used to offset employer withholding taxes, or sold to unrelated taxpayers for cash.

 

In addition, there is a “small employer” post credit for companies with payroll expenses less than $250,000, if the post company has payroll expenses of at least $100,000 and incurs at least $100,000 in qualified post expenses.  The annual program cap for the small employer credit is $1 million.

 

In addition to the above, Georgia’s “regular” film tax credit (O.C.G.A. § 48-7-40.26) also provides for 30% transferrable tax credit that may be claimed against post expenses.  However, this credit only applies to the extent the post expenses are related to footage shot in Georgia.  Further, it is designed to be claimed by the production company, not post-production companies.  Expenses which have been claimed under the regular film credit can’t also be claimed under the stand-alone post-production credits.

CLICK HERE FOR THE IT-PFC FORM
(Located on the Official State of Georgia Department of Revenue Website )

If you have further questions pertaining to Georgia's Post-Production Tax Credit, please fell free to ask

Georgia Post Alliance Member, Peter Stathopoulos, via email at: peter.stathopoulos@btcpa.net.
Please allow up to 48 hours for a reply.

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