Rule 159-1-1-.06 - Qualified Productions & Production Activities(1) The Base Tax Credit is available to all qualified and certified Projects.(2) Production Companies that act as a conduit to enable other production companies' projects to qualify for the Film Tax Credit that would not otherwise be eligible on their own will not be certified for Film Tax Credits. Work-for-hire service companies, including postproduction houses, catering companies, equipment rental houses, and motion picture laboratories are not eligible to receive the Film Tax Credit, but the Production Companies employing them may include these expenditures as part of their project expenses.(3) Qualified Interactive Entertainment Production Companies designing platforms for outside game developers are not eligible for the Film Tax Credit; however, the studio that buys these platforms from a Georgia vendor may claim them as an expense toward the production of an Interactive Entertainment project.(4) Expenditures incurred in Georgia for postproduction are qualified only on the portion of the project that was shot, recorded, or originally created in the state. Postproduction of footage shot outside the state is not a qualified production expenditure under O.C.G.A. § 48-7-40.26.(5) Expenditures for the Development phase of projects do not qualify for the Film Tax Credit. Projects must have entered 'Preproduction' in order for expenditures to qualify for the Film Tax Credit.(6) Qualified Commercial Advertisements are eligible for the Base Tax Credit; however, such Commercial Advertisements are not eligible for the GEP Tax Credit.Ga. Comp. R. & Regs. R. 159-1-1-.06
O.C.G.A. § 48-7-40.26.
Original Rule entitled "Georgia Entertainment Promotion Tax Credit" 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.Note: Correction of administrative typographical error in Rule History only, in July 2021 the original Rule title was cited as "Qualified Productions & Production Activities", error discovered in December 2023 and title corrected to "Georgia Entertainment Promotion Tax Credit" (i.e., as originally f. Mar. 4, 2010; eff. Mar. 24, 2010). Effective January 4, 2024.Amended: New title, "Qualified Productions & Production Activities." F. Dec. 15, 2023; eff. Jan. 4, 2024.