We continue to hear such buzz phrases as the “current state of the economy” or the “economic downturn”. What do these words mean, and how do they affect the entertainment industries? Well, really the music, film, and gaming business worlds have been in a state of economic recession for five or six years, dating back namely to the inception of digital downloading, social networking sites, and other forms of consumer-based technological advancements. The music, film, television, gaming, and other recorded entertainment media are taking the punch that wary, coupon-clipping consumers are dishing out. And, unfortunately, rightfully so. I mean, let’s be honest. What goods or services would you – or are you – pinching out of your budget if funds are flowing a little more conservatively? Georgia understands that most people don’t need there two trips to the movie theater a week or three new CDs a month (especially when you can download them for free). So we come prepared to accommodate.
New Law
In May of 2008, Georgia Legislature signed into law the Georgia Entertainment Industry Investment Act, which allows the Georgia Department of Economic Development to offer tax incentives for those companies who choose to create their entertainment in our fine state. A 20% tax break is given to any company creating original works in Georgia for feature films, made-for-TV movies, television programs, video and interactive games, music videos, and animation who spend $500,000 or more in Georgia. This does not mean that the entire product must be made in Georgia – it includes musical scoring, post production like ADR and mixing, materials and equipment rentals and/or purchases, and other expenditures. The participating company is not required to be based in Georgia.
An additional 10% tax break is available to those companies who feature a Georgia promotional logo in the film, video, or game for any amount of time. These tax incentives are also applicable to actors’ salaries and wages. If an actor is paid a salary – using a W2 form – (s)he must earn $500,000 or less. Wages earned on a contractual basis, using a Form 1099, are exempt from this cap and can exceed the $500,000.
Yes, we know that other states are also offering incentives for creating in their states; but no other state’s terms encompass such a wide array of industries or benefit the creators as thoroughly.
If your business or your friend, colleague, or neighbor’s business may qualify for the tax cuts, please direct them towards www.georgia.org. After all, money doesn’t grow on trees, but it does come from cotton plants. And we’ve got plenty of those in Georgia for everyone!


