In 2020, Georgia passed The Georgia Entertainment Industry Investment Act, HB 1037.
As of 1/1/2021, the following changes are now in effect.
- Loan out withholding rate: The Georgia loan out withholding rate is now tied to the Georgia corporate tax rate (currently 5.75%).
- Audit requirement: Audits are now required for productions certified in 2021 and claiming $2.5M+ in credits per project.
- Definition of a vendor: Every vendor must now be registered and have a valid business license in Georgia.
- Tax collection: Every expense that is subject to sales tax (sales/tangible personal property) must now have tax collected on it.
- Final tax credit application: Productions must now apply for a tax credit within a year of the completion of a certified project.
Last updated 2.24.2021. This information in this communication is general in nature, and is not intended, nor should it be construed, as legal, accounting, tax or other professional advice rendered by GreenSlate, LLC. The reader should contact his or her attorney, CPA, or tax professional prior to taking any action based upon this information.