Up until a few years ago, it was possible to get taxes prepared (even at the October 15th tax deadline) and buy Film Credits from a Broker to reduce state income taxes for the previous year. Nowadays, a GA resident wanting to buy tax credits must plan well in advance. Greetings from Rebekah Littleton, MAcc and Senior Tax Accountant at Killingsworth Spencer CPAs.
The way a Film Tax Credit works in GA is that a movie studio or TV production company can save up to 20% if principal filming and production are done within the state, and an additional 10% (maximum 30%) can be used to offset production costs if sound editing and the Peach logo are used in the production credits. Any unused portion of production credits is sold to GA residents.
Currently a GA taxpayer can buy Film Tax Credits at a $10,000 to $100,000 minimum depending on the production company selling the credits. They are generally sold for 92 cents on the dollar to effectively reduce the current state income tax rate of 5.39%.
Careful tax planning and film credit purchase will be necessary near the end of a tax year to anticipate state income tax liability, as there is no guarantee that any tax credits will be available in the filing year. At present, Killingsworth Spencer CPAs has located some Brokers with 2024 Film Tax Credits, but unfortunately, no Credits are available for 2023 tax returns.
We are currently taking appointments with new clients interested in making a change. If you have questions regarding this or any other tax matter, please call our office at 770-552-8286 to schedule a consultation.
Disclaimer: This post is for general information only and should not be taken as legal or financial advice