Rule 159-1-1-.03 - Film Tax Credit Certification-General(1)State Certified Production.(a) Project Certification Requirement. Prior to claiming any Film Tax Credit, each new Feature Film, Pilot, Series, TV Movie, Music Video, Commercial Advertisement or Interactive Entertainment project must be certified as meeting the guidelines and the intent of the Act. Each Applicant must apply for a single Project, and GDEcD will only render a decision on a Completed Application if the Applicant can show the Project is Fully Funded. Certification shall not be used to secure funding. Certification applications for all projects shall be submitted electronically to GDEcD. Projects eligible to receive the Base Tax Credits are Feature Films, Television Films, Series, Pilots, Commercial Advertisements, Music Videos, and Interactive Entertainment Projects, as defined and approved by GDEcD. Applicants will be required to provide budget information, funding sources, distribution agreements, production schedules, call sheets, personnel information, and any other documentation to supplement its Completed Application as requested by GDEcD. Only one Production Company may claim the tax credit, per project. The maximum total tax credits allowed for Qualified Interactive Entertainment Production Companies is $1.5 million per taxable year for a single company and the maximum total tax credits allowed among all Qualified Interactive Entertainment Production Companies is $12.5 million. The Commissioner of Revenue shall preapprove applications for Interactive Entertainment tax credits based on a first come, first serve basis. GDEcD certification of Interactive Entertainment projects does not guarantee that credits will be available.
(b) Projects Ineligible for Certification. Certain Projects do not qualify for the Film Tax Credit including, but not limited to, the following:1. Live or prerecorded broadcast of athletic events;2. Live or prerecorded news or current affairs programming covering news that has recently occurred or is ongoing at the time of the broadcast;3. Local interview or talk shows or other local interest programming not intended for Multimarket Commercial Distribution;4. Projects and content that were not created in whole or in part in Georgia, or content that is primarily post-production in nature;6. Corporate marketing, industrial, or training productions;7. Any productions in violation of Title 16 Chapter 12 of the state's Obscenity Statute;8. Sole platform arcade video games;9. Small scale games embedded and used exclusively in advertising, marketing and promotional websites or microsites;10. Infomercials, Infotainment, or Solicitation-based productions;11. Certain instructional or how-to content and programming, as determined by GDEcD;12. Political or Editorial-based content programming;13. Projects that do not meet the requisite base investment requirement;14. Marketing or political campaigns;15. Internet sites and digital media projects that do not meet all of the defined requirements of Interactive Entertainment;16. Interpersonal communications services such as video conferencing, wireless telecommunications, text-based channels, chat rooms, or broadcast/streamed viewing enhancements.17. Film or television Projects created for a limited audience, including, but not limited to museum presentations;18. Film, interactive entertainment, or other programs intended primarily for industrial, corporate or institutional end-users, including for training purposes;19. Any Project that does not adhere to industry standards;20. Any Project where filming is merely incidental or ancillary to the primary purpose of the Project, such as live concerts or events;21. Projects not intended for Multimarket Commercial Distribution via theaters, video on demand, direct to DVD, digital platforms designed for the distribution of interactive games, licensing for exhibition by individual television stations, groups of stations, networks, advertiser supported sites, cable television stations, or public broadcasting stations; and22. The creation of phone, tablet or desktop apps that do not meet the defined requirements of Interactive Entertainment.(c) Base Certification Letters. After a Completed Application is submitted and reviewed by GDEcD, GDEcD will electronically send Applicants a Base Certification Letter with a project certification number where Projects meet the certification requirements. GDEcD shall use reasonable efforts to make a certification decision on a Completed Application, and, if appropriate, provide the Base Certification Letter to the Applicant within sixty (60) days of the receipt of the Completed Application. If an Applicant does not receive a Base Certification Letter from GDEcD within this sixty (60) day period, and, during that 60-day period, does not receive any electronic communication from GDEcD regarding any necessary supplementation of the Completed Application, the Applicant may deem its application denied, and begin the appeals process outlined in Rule 159-1-1-.08. Applicants that voluntarily withdraw Base Tax Credit applications prior to a decision by GDEcD may reapply for the same project in the future. Projects that are denied and fail to appeal within the thirty (30) day timeframe for filing appeals cannot reapply. In the instance of co-productions, the applicant company must provide a written agreement to GDEcD, signed by both production companies, that identifies which production company will be entitled to earn and claim the film tax credit. In the instance of a work-for-hire, the work-for-hire company is not eligible for the Film Tax Credit.
If a Feature Film, Pilot, Series, TV Movie, Music Video, or Commercial Advertisement is certified, but does not begin filming within thirty (30) days of the Principal Photography Start Date identified in the Completed Application and does not notify GDEcD of a change in schedule, a retraction of the Base Certification Letter may be issued. Any material changes to the information provided in the Completed Application must be made in writing to GDEcD within thirty (30) days from the date of the material change.
Ga. Comp. R. & Regs. R. 159-1-1-.03
O.C.G.A. § 48-7-40.26.
Original Rule entitled "Film Tax Credit Certification" adopted. F. Mar. 4, 2010; eff. Mar. 24, 2010.Amended: F. May 6, 2013; eff. May 26, 2013.Amended: F. Dec. 4, 2017; eff. Dec. 24, 2017.Amended: F. Mar. 5, 2018; eff. Mar. 25, 2018.Amended: F. Dec. 29, 2020; eff. Jan. 18, 2021.Amended: F. June 18, 2021; eff. July 8, 2021.Amended: New title, "Film Tax Credit Certification-General." F. Dec. 15, 2023; eff. Jan. 4, 2024.