Compilation of Rules and Regulations of the State of Georgia › Department 560 - RULES OF DEPARTMENT OF REVENUE › Chapter 560-7 - INCOME TAX DIVISION › Subject 560-7-8 - RETURNS AND COLLECTIONS › Rule 560-7-8-.45 - Film Tax Credit

Current through Rules and Regulations filed through June 27, 2024
(1)
Purpose.
This rule provides guidance concerning the implementation
				and administration of the income tax credits contained within the Georgia
				Entertainment Industry Investment Act (hereinafter "Act") under O.C.G.A. §
									48-7-40.26.
(2)
Coordination of Agencies.
The Department of Economic Development is the state agency responsible for
				determining which projects qualify for the tax credits authorized under the Act
				and specifying which projects were approved as interactive entertainment
				projects.
(3)
Definitions.
(a) "Completion of
				the Base Investment or Excess Base Investment in this State" means the date the
				production company has finished qualified production activities and incurs no
				additional qualified production expenditures.
(b) "Film Tax Credit" means the credit
				allowed pursuant to the Georgia Entertainment Industry Investment Act, O.C.G.A.
				§
										48-7-40.26.
(c) As used in this regulation, the terms
				"affiliates", "base investment", "game platform", "game sequel", "multimarket
				commercial distribution", "prereleased interactive game", "production company",
				"qualified Georgia promotion", "qualified production activities", "state
				certified production", and "total aggregate payroll" have the same meaning as
				in O.C.G.A. §
										48-7-40.26.
(d) "Loan-out Company" means any personal
				service company contracted with and retained by the production company or
				qualified interactive entertainment production company to provide individual
				personnel (which are not employees of the production company or qualified
				interactive entertainment production company), such as artists, actors,
				directors, producers, writers, production designers, production managers,
				costume designers, directors of photography, editors, casting directors, first
				assistant directors, second unit directors, stunt coordinators, or similar
				personnel for the performance of services used directly in a qualified
				production activity, but not including persons retained by the production
				company or qualified interactive entertainment production company to provide
				tangible property or outside independent contractor service, such as catering,
				construction, trailers, equipment and transportation.
(e) "Personal Service Company" means any
				personal service corporation as defined in Internal Revenue Code Section
				269A(b) or any other entity, which also includes a sole proprietorship or an
				individual being paid as an independent contractor, meeting the principal
				activity and the ownership requirements of Internal Revenue Code Section
				269A(b).
(f) "Qualified Interactive
				Entertainment Production Company" means a company that:
1. Maintains a business location physically
				located in Georgia;
2. In the
				calendar year directly preceding the start of the taxable year of the qualified
				interactive entertainment production company, had a total aggregate payroll of
				$500,000 or more for employees working within the state; or in a taxable year
				beginning on or after January 1, 2018, had a total aggregate payroll of
				$250,000 or more for employees working within the state in the taxable year the
				qualified interactive entertainment production company claims the film tax
				credit;
3. Has gross income less
				than $100 million for the taxable year; and
4. Is primarily engaged in qualified
				production activities related to interactive entertainment which have been
				approved by the Department of Economic Development.
Any company that has gross income less than $100 million for
				 the taxable year and is primarily engaged in qualified production activities
				 related to interactive entertainment must meet the requirements in
				 subparagraphs (3)(f)1. and (3)(f)2. of this regulation and be certified as
				 meeting such as provided in subparagraph (5)(c) of this regulation in order to
				 be eligible for the film tax credit.
This term shall not mean or include any form of business
				 owned, affiliated, or controlled, in whole or in part, by any company or person
				 which is in default on any tax obligation of the state, or a loan made by the
				 state or a loan guaranteed by the state. For this definition, "primarily
				 engaged" means a company whose gross income from qualified production
				 activities related to interactive entertainment which has been approved by the
				 Department of Economic Development exceeds 50% of their total gross income for
				 their taxable year or whose expenses from qualified production activities
				 related to interactive entertainment which has been approved by the Department
				 of Economic Development exceeds 50% of their total expenses for their taxable
				 year.