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-.59 - Postproduction Film Tax Credit

Current through Rules and Regulations filed through June 27, 2024
(1)
Purpose.
This regulation
				provides guidance concerning the implementation and administration of the
				postproduction film tax credit under O.C.G.A. §
									48-7-40.26A.
(2)
Definitions.
As used in this
				regulation, the terms "affiliates", "multimarket commercial distribution",
				"qualified postproduction activities", "qualified production", and "total
				aggregate payroll" have the same meaning as in O.C.G.A. §
									48-7-40.26A.
(a) "Postproduction Company" means a company
				that:
1. Maintains a business location
				physically located in Georgia;
2.
				Has total aggregate payroll of $250,000 or more for employees working within
				the state in the taxable year that the postproduction company claims the
				postproduction film tax credit; or for a postproduction company that has
				incurred at least $100,000 but less than $500,000 in qualified postproduction
				expenditures, has a total aggregate payroll of at least $100,000 but less than
				$500,000 for employees working within the state in the taxable year that the
				postproduction company claims the postproduction film tax credit.
3. Is engaged in qualified postproduction
				activities; and
4. Has been
				certified by the Department as provided in paragraph (3) of this regulation.
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. In the instance of a work for hire in
				 which one postproduction company hires another postproduction company to engage
				 in qualified postproduction activities for pay, the hired postproduction
				 company shall be considered a service provider for the hiring postproduction
				 company and the hiring postproduction company shall be entitled to the
				 postproduction film tax credit for postproduction expenditures related to the
				 hired postproduction company only if the Department certifies that the hired
				 postproduction company is a Georgia company employing workers in this state and
				 that the work on the postproduction expenditures is solely in this state. In
				 order to make such certification, the postproduction company must certify on
				 Form IT-PC that the hired postproduction company is a Georgia company employing
				 workers in this state and that the work on the postproduction expenditures is
				 solely in this state. If the Department determines at any time that the
				 certification is not valid, then the Department shall disallow the
				 postproduction expenditures related to the hired postproduction company. In the
				 event that the hiring postproduction company does not qualify for the
				 postproduction film tax credit, because the hiring postproduction company does
				 not meet the definition of a postproduction company under O.C.G.A. §
												48-7-40.26A and  this paragraph, then the hired postproduction company would be entitled to
				 the postproduction film tax credit forits qualified postproduction expenditures
				 provided it otherwise qualifies.