TAXES
On a Roll How tax credits continue to drive Georgia’s entertainment machine By Mi chae l J . Pa l l e r i no
We enjoy helping taxpayers save money through thoughtful programs that create meaningful partnerships between government incentives and public investment. “ ”
Toward the end of summer 2019, the Ornstein- Schuler Group of Companies saw an opportunity to use its respected and diverse team by opening an entertainment tax credit division specializing in the brokerage of film tax credits, called Ornstein-Schuler State Film Tax Credits. Ornstein-Schuler saw this as an opportunity to help its clients apply for film tax credits that can be applied to offset 100% of individual or corporate state income tax liability (which these tax credits generally sell for about 89 to 90 cents on the dollar). The credits, a low risk way for Georgia taxpayers to reduce their state income tax liability and save approximately 10%, are an incentive for production companies to encourage economic development within the state. Implemented in 2008, the Georgia Entertainment Industry Investment Act (GEIIA) incentivizes produc- tion companies to locate their production activities in Georgia by offering a transferrable entertainment tax credit to the production company of up to 30% of their qualified expenditures that are made in the pre-produc- tion, production, and post-production phases of the de- velopment. The tax credits are only transferable once to a taxpayer with a Georgia income tax liability. Generally, any individual, corporation, or trust with a tax liability in the state can use and enjoy the tax saving benefits from film tax credits. Having myriad 2019 tax credits and prior year tax credits from the past three years (2017-2020) that were eligible to be applied retroactively for a tax refund, the Ornstein-Schuler team made their move. “In my opinion, the film tax credit is directly responsible for creating the robust film and television industry here in Georgia,” says Ryan Ellison, President with Ornstein-Schuler State Film Tax Credits.
The transaction process, which typically takes about one week to complete, offers an array of benefits to users. For example, Ellison says film credits can be used to amend prior year tax returns for the last three years, which can provide taxpayers significate savings. Taxpayers also can purchase film tax credits in the current year and then apply them retroactively to a tax return to each of the following three years: 2020, 2019, and 2018. “The production company can include a logo of the Georgia state peach emblem within the feature film and receive an extra 10% allocation of tax credits,” Ellison says. “The credits are transferable to any Georgia taxpayer. These production companies also help to spur economic development within the state by purchasing goods and services from Georgia companies.” Ornstein-Schuler State Film Tax Credits is designed to help production companies sell their film tax credits to Georgia taxpayers. The Ornstein-Schuler team works with large, mid-sized and small companies that need help selling their film tax credits. It also provides financing opportunities for production companies that need help with their capital requirements. “We enjoy helping taxpayers save money through thoughtful programs that create meaningful partnerships between government incentives and public investment,” Ellison says. “This also helps attract new business, as well as creative and talented individuals to the state, which might not have even considered Georgia as a place of business.”
Ryan Ellison
I n entertainment circles, Georgia’s film tax credits present one of the best—if not the best—opportunities for production companies seeking ways to help fund their projects. These entertainment tax credits can be used to offset state income tax liabilities for individuals, corporations, partnerships, limited liability companies, trusts, and insurance companies. Over the past few years alone, scores of high-profile projects have been able to set up shop throughout the state thanks to the strategic investment opportunity. Eligible productions include feature films; TV films, pilots, or series; televised specials, televised commercials; and music videos distributed outside GA. Sound recordings used in qualified feature films, television movies, or specials and television series, including motion picture soundtracks produced in Georgia, are qualified expenditures, but license fees cannot be included.
For more information on GEIIA, visit www.georgia.org/sites/default/f iles/ wp-uploads/2018/04/20-Base-Tax-Credit-APPLICATION-2018.pdf.
For more information on purchasing Georgia f ilm tax credits, visit Ornstein-Schuler State Film Tax Credits at www.statef ilmtaxcredits.com.
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