Who does what: GDEcD and GDOR
Georgia splits the work. The Department of Economic Development (GDEcD) decides whether a project is eligible and certifies it. The Department of Revenue (GDOR) audits the costs and certifies how much credit you get. Most of the paperwork happens after wrap.
The credit is 20% of qualified Georgia spend, plus 10% for providing promotional value to the state, for a total of 30%. Commercials get the 20% only. It's a transferable tax credit, and since most productions have no Georgia tax to offset, they sell it to Georgia taxpayers once the audit is final.
The $500,000 minimum can be met by one project or by several projects from the same production company in a single tax year, which helps commercial houses and music video companies. There's no annual cap, so approval doesn't depend on how many other shows are in town.
Worked example: a $1,000,000 feature in Savannah
| Line | Amount |
|---|---|
| Total budget | $1,000,000 |
| Less: post finished in New York | ($90,000) |
| Less: E&O, legal, and financing costs placed out of state | ($60,000) |
| Georgia qualified spend | $850,000 |
| Base credit at 20% | $170,000 |
| Promotional uplift at 10% | $85,000 |
| Credit | $255,000 |
| Less: GDOR audit fee (costs of $500,000 to $5,000,000) | ($5,000) |
| Credit net of audit fee | $250,000 |
If you pick an approved outside auditor, GDOR's fee drops to $3,250, but you also pay the auditor. Then you sell the credit, usually for less than face value, so get a current quote from a broker before putting a net figure in the finance plan.
At $5,000,000
$4,500,000 of Georgia spend at 30% is $1,350,000. The audit fee is still $5,000, because GDOR's tiers are based on Georgia production costs: $500,000 to $5,000,000 pays $5,000, the next tier to $10,000,000 pays $12,500, and anything above pays $25,000. A show whose Georgia costs come in at $5,000,001 moves up a tier, which is worth knowing when the cost report is close.
The calendar
- Apply to GDEcD no earlier than 120 days before principal photography and no later than 7 days after it starts. Projects over $100 million can apply up to 180 days ahead. GDEcD now accepts late applications with a fee, but don't plan around it.
- Once certified, register with GDOR for a loan-out withholding account and an income tax account. The withholding account covers payments to loan-out companies.
- Shoot, keeping at least $500,000 of qualified Georgia spend.
- Submit the mandatory audit application with the GDEcD certificate, total qualified Georgia costs, the principal photography completion date, your chosen auditor, and FEI numbers. GDOR contacts you within 3 business days.
- Pay the audit fee, complete the audit, and resolve any issues GDOR raises.
- Receive the Film Tax Credit Audit Final Certification letter with the qualified total, certificate number, and the tax year to report. Then transfer the credit.
Audit and uplift pitfalls
The audit is mandatory for every project first certified on or after January 1, 2023, so the credit isn't real until that letter arrives. Budget the months it takes when you plan a loan against the credit. Keep qualified spend coded by account from day one; reconstructing it at wrap is how legitimate costs get disallowed. And the uplift depends on meeting GDEcD's promotional requirements, so confirm them before you deliver.
Georgia and its neighbors
Alabama pays 25% on spend and 35% on resident payroll, but under a $22,000,000 yearly program cap. Florida has no credit, only a sales tax exemption. Tennessee, South Carolina, and North Carolina run their own programs. Run your budget through the incentive calculator, read how film tax credits work, and browse the incentives hub.