Georgia’s state government has announced the signing of new legislation allowing entertainment industry production studios up to 30 percent tax breaks.
Governor Sunny Perdue this week signed into law the 2008 Entertainment Industry Investment Act, which will allow the state to offer a 20 percent tax credit for qualified productions, which will then be eligible for an additional 10 percent tax credit if they include an animated Georgia promotional logo within the finished product.
The new incentives, designed to encourage entertainment industry productions in the region, apply to videogame, film and TV productions, as well as to commercials and music videos.
The state has seen success in the past with competitive incentives. The introduction of 2005’s Entertainment Industry Investment Act saw film, television and videogame companies contribute $475 million to Georgia’s economy during 2006, up from $124 million in 2004. However, that figure fell to $413 million in 2007 as film activity in the state decreased following the introduction of rival competitive packages in other states, regions and nations.
“The new incentives will put Georgia among the top five states in the US in terms of financial competitiveness for entertainment projects,” said Ken Stewart, commissioner of the Georgia Department of Economic Development (GDEcD).“We expect to see an increase in the number of industry jobs and overall economic impact for the state in the coming years.”
Bill Thompson of the GDEcD film office added,“Georgia will be the most competitive state in the country for videogame productions. Georgia is one of the few states whose entertainment incentives support the videogame industry.”