James March-April 2024 online - Flipbook - Page 81
It’s no secret that the
movie and TV industry
has grown in Georgia
over the last 10 years.
This is largely attributed to the Georgia tax credit
incentive package which provides tax credits for productions with annual expenditures exceeding $500,000
annually. And what’s also attractive is this spend
threshold can be spread over multiple projects, if all the
expenses are within one calendar year.
For Georgians not familiar with how this works,
the tax credit is structured to give a 20 percent credit
for all production related expenses incurred in Georgia.
If a project has work outside of the state, those costs
are not eligible for the credit. Additionally, if a project
brands itself with the “Made in Georgia” logo branding,
it is eligible for an additional 10 percent credit.
With a 30 percent tax credit eligibility total,
Georgia has become a highly competitive market for
all forms of film, television and other related media
productions such as advertising. Consider that in 2023
the film industry generated more than $4.1 billion dollars in direct spending in Georgia, according to Gov.
Brian Kemp.
But this question arises: At what cost to Georgia
taxpayers does this industry’s growth come and does
the model make sense going forward?
As this is written, the film tax credit has become a
subject of debate in the Georgia Legislature and, with
it approaching $1 billion dollars per year, it’s refreshing to see our leadership at least scrutinizing any kind
of incentive program of that magnitude.
Analyzing the impact of the industry is a nuanced
exercise in data analysis and economic modeling. A
chief proponent of putting some form of cap on the
film tax credit incentive program is Sen. Chuck Hufstetler, R-Rome. Much of the argument for capping the
program derives its basis from the abstract “Economic Impact of the Film Industry in Georgia” by John
Charles Bradbury, a highly distinguished economics
professor at Kennesaw State University.
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