Georgia's Investment Trend

What's the Hot Trend for Investment in Georgia?

Real estate? Still no...not even close. So where's the money? It's in the movies. Ever thought about how much you spend on film, TV and video games? We've all paid far too much over the last year, or even the last week for some of us, to go to the movie theater with our family and friends. How about TV? Secretly, most people have some favorite reality show that they just can't miss. Or, how about Halo, Call of Duty, and similar games that are taking a large chunk of change out of your bank account every month; if not yours, you surly know someone who spends far too much on those games. Wouldn't it be nice to get something back?

Over the past couple of years, Hollywood has been migrating to Georgia. In 2009 alone, Georgia slid into the nation's top five for film and TV production. And, in just the first half of 2010, movies filmed in Georgia have grossed more than $400 million at the box office.

"Film, music and digital entertainment projects...'these industries are thriving, growing and employing thousands of Georgians." Gov. Sonny Perdue

What's going on? Why has Georgia become the hottest place to film a movie? Easy, tax credits.... big ones. While real estate is burdened by higher and higher taxes, entertainment is getting all the breaks. And, it's all thanks to the Georgia Entertainment Industry Investment Act.

In May 2008, the Georgia Entertainment Industry Investment Act was signed. It improved the state tax credit for qualified production and post- production expenditures by as much as 30%. As a result, productions in such areas have increased 400% since the program went into effect.

The Georgia Entertainment Industry Investment Act is an aggressive tax credit program that provides an income tax credit of 20% to qualified productions. In addition, there is a 10% tax credit for productions that embed a Georgia promotional logo in the title, credits or as product placement in the content. Furthermore, there is an additional incentive provided for a Sales and Use Tax Exemption of up to 8% on all qualified expenses. And, what's really fantastic about this tax credit program is that it encompasses much more than just traditional feature films; the Act also includes video game development and animation.

Movies, television series, commercials, music videos, game development and animation are the hot spots for investment in Georgia.

The Georgia Entertainment Industry Investment Act has been a tremendous benefit for Georgia. The State has benefited from an overall economic impact of over $1.5 billion. In addition, the tax credit package has generated upwards of $950 million in direct investment! Someone's making money off of these productions. So far, I've just been spending money on these productions. I sure would like to get some back!