Georgia’s Film And TV Tax Credit Hits Record $1.2 Billion In Reimbursements

The state of Georgia has recorded its highest mark ever for giving out its film and TV tax credit for eligible productions. The Governor’s Office of Planning and Budget reported the record $1.2 billion mark on Thursday.

The amount is reflective of the 2021 fiscal year ending on June 30th. Several big-budget projects have recently been filmed in the state including Lovecraft Country, Creed III, Black Panther: Wakanda Forever, and WandaVision. After the record credit amount was announced the state also notified the public that production expenditure across the state had reached $4 billion.

The main reason Georgia could reach such a high number for its tax credit scheme is that unlike other states Georgia’s rebate is completely uncapped, making it a very unique special provision for film and TV. 

Other states have a cap around the $100 million mark. The New Mexico limit is at $110 million, New Jersey lands at $100 million and Louisiana at $150 million. 

New York and California are aberrations of this. Both cap their incentive program at $420 million due to the much larger size of their budgets and frequency of productions across their states, with massive studio presences in both places. 

Georgia currently offers a transferable 20% base tax credit, with the option of adding an additional 10% if the Georgia logo is displayed in the credits of approved projects, and a link to ExploreGeorgia.org/film on the project’s landing page online.

Georgia’s previous record amount was set in 2019 with $860 million. 2020 saw a significant drop however due to the pandemic, with $649 million in rebates granted. The state was one of the first to reopen to productions after pandemic shutdowns hit the country. 

There are however some critics of the scheme. In 2020, a state audit revealed that the impact of the credit on the state had been bloviated. The audit identified the swathing incentive had produced 10,919 direct jobs throughout the state in 2016. 23,209 jobs were noted as being created once secondary spending and impact had been tallied up. 

Some Georgia officials had stated that the credit had produced around 90,000 jobs in the same period. 

Speaking to Variety, Danny Kanso, a policy analyst at the Georgia Budget & Policy Institute, said on the credit: “Capping the credit would allow the state to manage the erosion of our state’s tax base while allowing lawmakers to better support high-return programs and services such as health care.”

“Lawmakers should place a cap of $100 million on the program, while ensuring the credit is targeted to companies that locate in Georgia and hire in-state workers.”