Companies of any industry may purchase unused tax credits from eligible entertainment companies that claimed credits but cannot use them. Entertainment industry companies that spend $500,000 or more on production and post production projects are eligible for a 20-30 percent tax credit.
For all types of companies paying Georgia corporate income tax, the Georgia Entertainment Industry Investment Act allows for purchase of unused tax credits from an entertainment company. Special features of the act include:
Typically savings can be up to 10-15% savings in tax liability for company buying credit from eligible entertainment company.
20- 30% flat, transferable tax credit for entertainment company.
No sunset clause is applied.
Credits claimed but not used may be sold to another Georgia taxpayer. See Georgia Rules and Regulations 560-7-8-.45 for details on sale transfer of credits.
Governing Georgia Code and Rules: Georgia Code 48- 7-40.26, Department of Revenue Rules and Regulations 560-7-8-.45