THE INCENTIVES PROGRAM - TIP

On August 4, 2020, Governor Kemp signed House Bill 1037 which amends the Georgia Entertainment Industry Investment Act as follows:

• For projects “initially” certified by the Georgia Department of Economic Development (GDEcD) on or after January 1, 2021:
  • Requires a production company to submit an application for a “final” certification within one year from the date it completes a state certified production;
  • Stipulates the tax credit shall be considered earned in the taxable year in which it is issued a final certification;
  • Reduces the number of years the credit may be carried forward from five years to three years;
  • Delays the issuance of the additional 10% promotional credit until the qualifying project is commercially distributed in multiple markets; and,

• Requires an audit be performed by the Georgia Department of Revenue (GA DOR) or an independent third-party auditor certified by the GA DOR (subject to additional adjustments by GA DOR) under the following conditions:
  • The project was initially certified by the GDEcD on or after January 1, 2021, but before December 31, 2021 and the project’s total estimated tax credit amount exceeds $2.5 million; or,
  • The project was initially certified by the GDEcD on or after January 1, 2022, but before December 31, 2022 and the project’s total estimated tax credit amount exceeds $1.25 million; or,
  • For any project initially certified by the GDEcD on or after January 1, 2023.