Georgia Film / Entertainment Tax Credit

Georgia Entertainment Tax Credits Summary

  • Applicable against the Georgia income tax liability of any individual, corporation or trust.
  • May offset 100% of a taxpayer’s liability.
  • Excess credits carry forward for five years.
  • Credits purchased in one year increments.
  • Credits go through pre-Audit with the state or are guaranteed by the production company.
  • Credits can be used in the year they are purchased; the year they were created or any year in between to the extent it doesn’t surpass the 5 year carry-forward rule.
Federal Taxation:
  • Investor is treated as acquiring an intangible asset upon buying the credits.
  • Investor is deemed to have sold the credit and recognizes a capital gain on the difference between the face value of the credit and their basis in the credit when the taxpayer files their tax return and uses the credit to offset tax.
  • Taxpayer also realizes a deduction for state income tax payment equal to the face value of the credit at that same point in time equal to the deemed proceeds (face value of the credit) which are treated as then being paid back to Georgia.
Other states offering film / entertainment tax credits