An audit prepared by the Georgia State University Fiscal Research Center says the Georgia FTC (Film Tax Credit) induces substantial economic activity in Georgia. The report also suggests that alternative uses for the more than $1 billion in annual credits could be better utilized but does not cite any evidence or consider empirical data to the contrary.
Research conducted and facilitated by other organizations find an enormous benefit to Georgians in terms of job creation and opportunities for the state. The incentive has created a vibrant creative economy spreading beyond the scope of the audit findings that include game development, music, and the arts.
“While the incentive targets film production spending, the goal and indeed the results clearly show that the Film Tax Credit has spurred tremendous growth in all areas of the state’s creative industries,” said Randy Davidson, President of Georgia Entertainment. “It’s the right stance for the state. We are years ahead of other states as we continue to move toward being the world leader in this coming creative boom.”
The report says. “It is also the largest tax expenditure among Georgia’s economic development incentives. Consistent with studies of other state film tax incentives programs, the state of Georgia loses money.” The audit comes after a review was performed by Georgia House and Senate legislators. Findings from the review are expected soon.
“I am very hopeful that legislators will take a broad view of the audit and match it with other data,” continued Davidson. “The reality is that billions have been invested by Georgians to stand up an industry that has helped the state power through slow growth periods that have derailed other states in years past. We have a balanced, multilayered economy – prepared for the careers young Georgians want today and will demand tomorrow and into the future.”
A newly released study based on unprecedented access to Georgia film production data confirms the state’s film tax incentive has fueled billions in economic activity statewide — $8.55 billion in fiscal year 2022 alone; is responsible for nearly 60,000 jobs; and generates a return on investment of $6.30 for every $1 in tax incentive.
The Economic Impact Study of Georgia’s Entertainment Industry Tax Credit is the most comprehensive look to date at the economic impact of the film tax incentive and the role it plays in Georgia’s film industry success. The findings of the expanded economic study are based on wide-ranging industry data; extensive qualitative and quantitative research; and sector-specific IMPLAN modeling, a robust economic modeling tool used by governments, business professionals and academics to analyze economic development policies and programs.
“The results are in and the data unequivocally points to a win for Georgians,” said Kelsey Moore, Executive Director of the Georgia Screen Entertainment Coalition, which initiated the third-party study. “This study proves the film tax incentive is working exactly as intended. It’s created high-paying jobs for Georgians, supports thousands of new and existing small businesses, and attracts billions in production spending and investment each year. Through the vision and foresight of state leaders and the General Assembly, the film industry continues to benefit families, communities and workers throughout the state.”
“I understand that people may disagree about the decision made by our legislature, but show me any other program that would create investments like that of Tyler Perry Studios, Shadowbox, Assembly or Trilith,” said Steve Weizenecker of Barnes & Thornburg.
“The film incentive is foundational and has provided a reference point for companies to spend billions in Georgia each year and has also facilitated opportunities for rural areas of Georgia,” said Matt Campbell, Executive Director of Coastal Entertainment Alliance and owner of Georgia Matters. “We are optimistic that legislators will see the value of keeping Georgia at the forefront of growth in film and entertainment.”
“Georgia is way ahead and prepared for further massive economic growth in film, music, gaming development and all areas of career options. Other states are calling. Other countries are calling. They know what is sometimes hard to see if you are living in it – investing and preparing for careers and jobs in the creative industries is vital,” concluded Davidson.
More comments and analysis from others inside the industry later.
Video: How the Georgia Entertainment Industry Investment Act works in 2 minutes.
