Georgia Film Tax Credit Expanded to Post-Production

by Taylor English Duma LLP

For taxable years beginning on or after January 1, 2018, the Georgia legislature has expanded the film credit to cover “qualified post-production expenditures.” What is unique about this new law is that qualified post-production expenditures incurred in Georgia may relate to footage shot outside of Georgia.

“Post-production” refers to tasks that must be done after the filming ends, including the editing of raw footage to cut scenes, the insertion of transition effects, and the inclusion of music, voice, and other sound.

The Georgia Department of Revenue (DOR) has released guidance on eligibility for the post-production tax credit with examples of when and how it applies.

Who is eligible to claim the credits?

Post-production companies incurring expenditures in Georgia of more than $500K and with an aggregate payroll of $250,000 or more can earn tax credits at the rate of either 30 percent or 35 percent (depending upon the county in which the services are performed), up to a maximum of $2 million in tax credits. The new law provides a 20 percent tax credit for “smaller post-production companies” with a minimum spend of $100K on qualified post-production and payroll in Georgia.     

To qualify as a post-production company under this new law, a company must be a Georgia vendor, that is, maintain a business location (i.e., a physical presence) in state, which would require the formal registration, licensing, and payroll tax payments as applicable. The company must also be approved by the DOR.

When and how are the credits claimed?

A post-production company may use the tax credits against income taxes and, if the company elects, any excess can offset payroll withholding taxes. For pass-through entities, such as LLCs, partnerships and S Corporations, the post-production film tax credit will pass to members, shareholders, or partners based on their year ending profit/loss percentage.

Unused credits may be carried forward for five years and sold to other Georgia companies within that five-year carryover period. A credit can only be sold once and may not be resold once it has already been transferred, however, credit amounts can be divided up and sold to several different taxpayers.

What are considered “qualified post-production expenditures”?

“Qualified post-production expenditures” are defined to include expenses for footage shot either inside or outside of Georgia and cover the following costs:

  • Costs associated with photography and sound synchronization
  • Expenditures for sound recordings and musical compositions, lighting, and related services and materials
  • Editing and related services
  • Rental of facilities and equipment
  • Leasing of vehicles
  • Costs of food and lodging
  • Digital or tape editing, film processing, transfers of film to tape or digital format, sound mixing, computer graphics services, special effects services, and animation services
  • Total aggregate payroll
  • Airfare, if purchased through a Georgia travel agency or travel company
  • Insurance costs and bonding, if purchased through a Georgia insurance agency
  • Other direct post-production costs reflecting generally accepted entertainment industry practices


The enactment of the Georgia post-production film tax credit extends our already competitive film production tax incentives into a new category of costs and will thereby encourage more film production companies to do business within the State.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Taylor English Duma LLP | Attorney Advertising

Written by:

Taylor English Duma LLP

Taylor English Duma LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.