| 6 | | - | To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to1 |
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| 7 | | - | income taxes, so as to revise the definition of "taxable nonresident"; to provide for taxation2 |
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| 8 | | - | of certain nonresidents; to separate into a new Code section provisions related to tax credits3 |
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| 9 | | - | for qualified interactive entertainment production companies; to provide for base investment4 |
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| 10 | | - | requirements for a qualified production company to qualify for a credit; to provide for a5 |
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| 11 | | - | maximum amount of credits that may be transferred each year; to provide for the6 |
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| 12 | | - | implementation of such maximum; to provide for an exemption from such maximum; to7 |
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| 13 | | - | provide for conditions related to transferability of credits; to provide for the circumstances8 |
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| 14 | | - | under which a company qualifies for an additional credit; to authorize certain fees; to require9 |
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| 15 | | - | companies to pay court costs if the denial of certification is upheld by a court on appeal; to10 |
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| 16 | | - | provide for an application requirement; to provided for rules and regulations; to remove11 |
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| 17 | | - | outdated and unnecessary language; to provide a short title; to provide for definitions; to12 |
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| 18 | | - | provide for related matters; to provide for an effective date and applicability; to repeal13 |
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| 19 | | - | conflicting laws; and for other purposes.14 |
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| 20 | | - | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:15 |
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| 21 | | - | - 1 - 24 LC 50 0918S |
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| 22 | | - | SECTION 1.16 |
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| 23 | | - | Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,17 |
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| 24 | | - | is amended in paragraph (11) of Code Section 48-7-1, relating to definitions, by deleting18 |
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| 25 | | - | "and" at the end of subparagraph (D), by deleting the period at the end of subparagraph (E)19 |
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| 26 | | - | and inserting in lieu thereof "; and", and by adding a new subparagraph to read as follows:20 |
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| 27 | | - | "(F)(i) Every person that is not otherwise a resident of this state for income tax21 |
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| 28 | | - | purposes that receives income which is, at any time, derived from residual or royalty22 |
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| 29 | | - | payments due to a performing arts activity, including employment, trade, business,23 |
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| 30 | | - | profession, or other activity performed or carried on within this state, with respect to24 |
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| 31 | | - | a state certified production as defined in Code Sections 48-7-40.26.25 |
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| 32 | | - | (ii) For the purposes of this subparagraph and subsection (b) of Code Section26 |
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| 33 | | - | 48-7-30, the term:27 |
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| 34 | | - | (I) 'Performing arts activity' means any activity performed or completed as a part28 |
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| 35 | | - | of a state certified production as defined in Code Sections 48-7-40.26.29 |
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| 36 | | - | (II) 'Residual payments' means payments to writers, directors, or actors from30 |
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| 37 | | - | rebroadcast or exploitation in a secondary market of a recorded production.31 |
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| 38 | | - | (III) 'Royalty payments' means payments to an author or composer from the32 |
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| 39 | | - | proceeds of a sale or performance of his or her work."33 |
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| 40 | | - | SECTION 2.34 |
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| 41 | | - | Said chapter is further amended by revising subsection (b) of Code Section 48-7-30, relating35 |
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| 42 | | - | to taxation of nonresident's entire net income derived from activities within state, separate36 |
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| 43 | | - | accounting possible, applicability, allowed deductions, and applicability of provisions for37 |
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| 44 | | - | corporations to nonresidents, as follows:38 |
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| 45 | | - | "(b) A taxable nonresident whose income is derived from employment, trade, business,39 |
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| 46 | | - | professional, or other activity, including but not limited to performing arts activity,40 |
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| 47 | | - | performed or carried on within and outside this state shall be taxed only upon the income41 |
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| 48 | | - | - 2 - 24 LC 50 0918S |
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| 49 | | - | derived from carrying on the activity within this state; provided, however, that all income42 |
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| 50 | | - | derived from residual or royalty payments to a taxable nonresident due to employment,43 |
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| 51 | | - | trade, business, profession, or other performing arts activity performed or carried on within44 |
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| 52 | | - | this state, with respect to a state certified production as defined in Code Section 48-7-40.26,45 |
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| 53 | | - | shall be taxable income whether such income is received within or outside of this state. 46 |
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| 54 | | - | The amount of taxable income may be determined by a separate accounting of the income47 |
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| 55 | | - | if the commissioner is satisfied that the separate accounting reflects correctly the income48 |
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| 56 | | - | fairly attributable to this state. Otherwise, the amount of taxable income shall be49 |
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| 57 | | - | determined in the manner prescribed by this chapter for the allocation and apportionment50 |
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| 58 | | - | of income of corporations engaged in business within and outside this state."51 |
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| 59 | | - | SECTION 3.52 |
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| 60 | | - | Said chapter is further amended by revising Code Section 48-7-40.26, relating to income tax53 |
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| 61 | | - | credits for film, gaming, video, or digital production, as follows:54 |
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| 62 | | - | "48-7-40.26.55 |
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| 63 | | - | (a) This Code section shall be known and may be cited as the 'Georgia Entertainment56 |
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| 64 | | - | Industry Investment Act.'57 |
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| 65 | | - | (b) As used in this Code section, the term:58 |
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| 66 | | - | (1) 'Affiliates' means those entities that are included in the production company's or59 |
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| 67 | | - | qualified interactive entertainment production company's affiliated group as defined in60 |
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| 68 | | - | Section 1504(a) of the Internal Revenue Code and all other entities that are directly or61 |
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| 69 | | - | indirectly owned 50 percent or more by members of the affiliated group. For purposes62 |
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| 70 | | - | of this Code section, notwithstanding its form of organization, a production company63 |
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| 71 | | - | shall be deemed a member of an affiliated group if it is directly or indirectly owned 5064 |
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| 72 | | - | percent or more by one or more members of an affiliated group.65 |
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| 73 | | - | (2) 'Base investment' means the aggregate funds actually invested and expended by a66 |
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| 74 | | - | production company or qualified interactive entertainment production company as67 |
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| 75 | | - | - 3 - 24 LC 50 0918S |
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| 76 | | - | production expenditures incurred in this state that are directly used in a state certified68 |
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| 77 | | - | production or productions.69 |
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| 78 | | - | (3) 'Game platform' means the electronic delivery system used to launch or play an70 |
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| 79 | | - | interactive game.71 |
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| 80 | | - | (4) 'Game sequel' means an interactive game which builds upon the theme of a72 |
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| 81 | | - | previously released interactive game, is distinguished by a new title, and features73 |
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| 82 | | - | objectives or characters that are recognizably different from the original game.74 |
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| 83 | | - | (5)(3) 'Multimarket commercial distribution' means paid commercial distribution with75 |
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| 84 | | - | media buys which extend to markets outside the State of Georgia.76 |
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| 85 | | - | (6) 'Prereleased interactive game' means a new game, the offering of an existing game77 |
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| 86 | | - | on a new game platform, or a game sequel that is in the developmental stages of78 |
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| 87 | | - | production, which may be available to individuals for testing purposes but is not79 |
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| 88 | | - | generally made available or distributed to consumers or to the general public.80 |
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| 89 | | - | (7)(4) 'Production company' means a company, other than a qualified interactive81 |
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| 90 | | - | entertainment production company, primarily engaged in qualified production activities82 |
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| 91 | | - | which have been approved by the Department of Economic Development. This Such83 |
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| 92 | | - | term shall not mean or include any form of business owned, affiliated, or controlled, in84 |
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| 93 | | - | whole or in part, by any company or person which is in default on any tax obligation of85 |
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| 94 | | - | the state, or a loan made by the state or a loan guaranteed by the state.86 |
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| 95 | | - | (8)(5) 'Production expenditures' means:87 |
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| 96 | | - | (A) Preproduction, production, and postproduction expenditures incurred in this state88 |
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| 97 | | - | that are directly used in a qualified production activity, including, but not limited to, the89 |
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| 98 | | - | following: set construction and operation; wardrobes, make-up, accessories, and related90 |
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| 99 | | - | services; costs associated with photography and sound synchronization; expenditures91 |
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| 100 | | - | excluding license fees incurred with Georgia companies for sound recordings and92 |
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| 101 | | - | musical compositions; sound recording projects used in feature films, series, pilots, or93 |
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| 102 | | - | movies; lighting and related services and materials; editing and related services; rental94 |
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| 103 | | - | - 4 - 24 LC 50 0918S |
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| 104 | | - | of facilities and equipment; leasing of vehicles; costs of food and lodging; digital or95 |
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| 105 | | - | tape editing; film processing; transfers of film to tape or digital format; sound mixing;96 |
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| 106 | | - | computer graphics services; special effects services; visual effects services; animation97 |
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| 107 | | - | services; total aggregate payroll; airfare, if purchased through a Georgia travel agency98 |
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| 108 | | - | or travel company; insurance costs and bonding, if purchased through a Georgia99 |
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| 109 | | - | insurance agency; and other direct costs of producing the project in accordance with100 |
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| 110 | | - | generally accepted entertainment industry practices.;101 |
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| 111 | | - | (B) This Such term shall not include:102 |
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| 112 | | - | (i) Postproduction expenditures for footage shot outside the State of Georgia this103 |
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| 113 | | - | state, marketing, story rights, or distribution;104 |
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| 114 | | - | (ii) Any expenditure for work or services not conducted or rendered in Georgia this105 |
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| 115 | | - | state. Expenditures for services not performed at the filming site shall only qualify106 |
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| 116 | | - | if the vendor is a Georgia vendor. Expenditures for services conducted or rendered107 |
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| 117 | | - | both in Georgia and outside Georgia this state shall only qualify to the extent the108 |
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| 118 | | - | service is conducted or rendered in Georgia;109 |
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| 119 | | - | (iii) Expenditures for goods that were not purchased or rented or leased in this state110 |
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| 120 | | - | from a Georgia vendor. Expenditures for goods shall only qualify to the extent such111 |
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| 121 | | - | goods are used in this state. A vendor that acts as a conduit to enable purchases or112 |
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| 122 | | - | rentals to qualify that would not otherwise qualify shall not be considered a Georgia113 |
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| 123 | | - | vendor with respect to such purchases, rentals, or leases; or114 |
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| 124 | | - | (iv) Any transaction subject to taxation imposed by Chapter 8 or 13 of this title for115 |
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| 125 | | - | which taxes have not been demonstrably paid.;116 |
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| 126 | | - | (C) This Such term includes payments to a loan-out company by a production company117 |
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| 127 | | - | or qualified interactive entertainment production company that has met its withholding118 |
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| 128 | | - | tax obligations as set out below provided in this paragraph. The production company119 |
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| 129 | | - | or qualified interactive entertainment production company shall withhold Georgia120 |
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| 130 | | - | income tax at the rate imposed by subsection (a) of Code Section 48-7-21 on all121 |
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| 131 | | - | - 5 - 24 LC 50 0918S |
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| 132 | | - | payments to loan-out companies for services performed in Georgia. Any amounts so122 |
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| 133 | | - | withheld shall be deemed to have been withheld by the loan-out company on wages123 |
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| 134 | | - | paid to its employees for services performed in Georgia pursuant to Article 5 of this124 |
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| 135 | | - | chapter notwithstanding the exclusion provided in subparagraph (K) of paragraph (10)125 |
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| 136 | | - | of Code Section 48-7-100. The amounts so withheld shall be allocated to the loan-out126 |
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| 137 | | - | company's employees based on the payments made to the loan-out company's127 |
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| 138 | | - | employees for services performed in Georgia. For purposes of this chapter, loan-out128 |
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| 139 | | - | company nonresident employees performing services in Georgia shall be considered129 |
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| 140 | | - | taxable nonresidents and the loan-out company shall be subject to income taxation in130 |
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| 141 | | - | the taxable year in which the loan-out company's employees perform services in131 |
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| 142 | | - | Georgia, notwithstanding any other provisions in this chapter. Such withholding132 |
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| 143 | | - | liability shall be subject to penalties and interest in the same manner as the employee133 |
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| 144 | | - | withholding taxes imposed by Article 5 of this chapter and the commissioner shall134 |
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| 145 | | - | provide by regulation the manner in which such liability shall be assessed and135 |
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| 146 | | - | collected.; and136 |
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| 147 | | - | (D) Production expenditures by a production company shall be subject to any137 |
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| 148 | | - | limitations or reductions imposed by subsection (l) (k) of this Code section.138 |
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| 149 | | - | (9)(6) 'Qualified Georgia promotion' means a qualified promotion of this state approved139 |
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| 150 | | - | by the Department of Economic Development consisting of a:140 |
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| 151 | | - | (A) Qualified movie production which includes a five-second long static or animated141 |
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| 152 | | - | logo that promotes Georgia in the end credits before the below-the-line crew crawl for142 |
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| 153 | | - | the life of the project and which includes a link to Georgia on the project's web page;143 |
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| 154 | | - | (B) Qualified TV production which includes an embedded five-second long Georgia144 |
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| 155 | | - | promotion during each broadcast worldwide for the life of the project and which145 |
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| 156 | | - | includes a link to Georgia on the project's web page; or146 |
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| 157 | | - | (C) Qualified music video which includes the Georgia logo at the end of each video147 |
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| 158 | | - | and within online promotions; or148 |
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| 159 | | - | - 6 - 24 LC 50 0918S |
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| 160 | | - | (D) Qualified interactive game which includes a 15 second long Georgia advertisement149 |
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| 161 | | - | in units sold and embedded in online promotions.150 |
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| 162 | | - | (10) 'Qualified interactive entertainment production company' means a company that:151 |
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| 163 | | - | (A) Maintains a business location physically located in Georgia;152 |
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| 164 | | - | (B)(i) Through December 31, 2017, in the calendar year directly preceding the start153 |
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| 165 | | - | of the taxable year of the qualified interactive entertainment production company, had154 |
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| 166 | | - | a total aggregate payroll of $500,000.00 or more for employees working within the155 |
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| 167 | | - | state; or156 |
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| 168 | | - | (ii) On or after January 1, 2018, had a total aggregate payroll of $250,000.00 or more157 |
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| 169 | | - | for employees working within the state in the taxable year the qualified interactive158 |
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| 170 | | - | entertainment production company claims the tax credits;159 |
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| 171 | | - | (C) Has gross income less than $100 million for the taxable year; and160 |
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| 172 | | - | (D) Is primarily engaged in qualified production activities related to interactive161 |
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| 173 | | - | entertainment which have been approved by the Department of Economic162 |
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| 174 | | - | Development.163 |
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| 175 | | - | This term shall not mean or include any form of business owned, affiliated, or controlled,164 |
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| 176 | | - | in whole or in part, by any company or person which is in default on any tax obligation165 |
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| 177 | | - | of the state, or a loan made by the state or a loan guaranteed by the state.166 |
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| 178 | | - | (11)(7) 'Qualified production activities' means the production of new film, video, or167 |
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| 179 | | - | digital projects produced in this state and approved by the Department of Economic168 |
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| 180 | | - | Development as state certified productions, including only the following: feature films,169 |
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| 181 | | - | series, pilots, movies for television, televised commercial advertisements, and music170 |
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| 182 | | - | videos, interactive entertainment, or prereleased interactive games. Such activities term171 |
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| 183 | | - | shall include projects recorded in this state, in whole or in part, in either short or long172 |
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| 184 | | - | form, animation and music, fixed on a delivery system which includes without limitation173 |
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| 185 | | - | film, videotape, computer disc, laser disc, and any element of the digital domain, from174 |
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| 186 | | - | which the program is viewed or reproduced, and which is intended for multimarket175 |
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| 187 | | - | - 7 - 24 LC 50 0918S |
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| 188 | | - | commercial distribution via theaters, video on demand, direct to DVD, digital platforms176 |
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| 189 | | - | designed for the distribution of interactive games, licensing for exhibition by individual177 |
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| 190 | | - | television stations, groups of stations, networks, advertiser supported sites paid178 |
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| 191 | | - | subscription based platform, cable television stations, or public broadcasting stations. 179 |
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| 192 | | - | Such term shall not include the coverage of news or athletic events, local interest180 |
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| 193 | | - | programming, instructional videos, corporate videos, any project that is not intended for181 |
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| 194 | | - | multimarket commercial distribution, or any project not shot, recorded, or originally182 |
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| 195 | | - | created in Georgia.183 |
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| 196 | | - | (12)(8) 'Resident' means an individual as designated pursuant to paragraph (10) of Code184 |
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| 197 | | - | Section 48-7-1, as amended.185 |
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| 198 | | - | (13)(9) 'State certified production' means a production engaged in qualified production186 |
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| 199 | | - | activities which have been approved by the Department of Economic Development in187 |
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| 200 | | - | accordance with regulations promulgated pursuant to this Code section. In the instance188 |
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| 201 | | - | of a 'work work for hire' hire in which one production company or qualified interactive189 |
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| 202 | | - | entertainment production company hires another production company or qualified190 |
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| 203 | | - | interactive entertainment production company to produce a project or contribute elements191 |
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| 204 | | - | of a project for pay, the hired company shall be considered a service provider for the192 |
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| 205 | | - | hiring company, and the hiring company shall be entitled to the film tax credit allowed193 |
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| 206 | | - | under this Code section.194 |
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| 207 | | - | (14)(10) 'Total aggregate payroll' means the total sum expended by a production195 |
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| 208 | | - | company or qualified interactive entertainment production company on salaries paid to196 |
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| 209 | | - | employees working within this state in a state certified production or productions. For197 |
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| 210 | | - | purposes of this paragraph:198 |
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| 211 | | - | (A) With respect to a single employee, the portion of any salary which exceeds199 |
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| 212 | | - | $500,000.00 for a single production shall not be included when calculating total200 |
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| 213 | | - | aggregate payroll; and201 |
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| 214 | | - | - 8 - 24 LC 50 0918S |
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| 215 | | - | (B) All payments to a single employee and any legal entity in which the employee has202 |
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| 216 | | - | any direct or indirect ownership interest shall be considered as having been paid to the203 |
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| 217 | | - | employee and shall be aggregated regardless of the means of payment or distribution.204 |
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| 218 | | - | (c) For any production company or qualified interactive entertainment production205 |
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| 219 | | - | company and its affiliates that invest in a state certified production approved by the206 |
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| 220 | | - | Department of Economic Development and whose average annual total production207 |
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| 221 | | - | expenditures in this state did not exceed $30 million for 2002, 2003, and 2004, there shall208 |
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| 222 | | - | be allowed an income tax credit against the tax imposed under this article. The tax credit209 |
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| 223 | | - | under this subsection shall be allowed if the base investment by a production company and210 |
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| 224 | | - | its affiliates that invest in state certified productions in this state equals or exceeds211 |
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| 225 | | - | $500,000.00 $750,000.00 for qualified production activities a single state certified212 |
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| 226 | | - | production or $8 million for all state certified productions, except that any qualified213 |
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| 227 | | - | interactive entertainment production company shall be allowed the tax credit under this214 |
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| 228 | | - | subsection if the base investment in this state equals or exceeds $250,000.00 for qualified215 |
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| 229 | | - | production activities on or after January 1, 2018, and shall be calculated as follows:216 |
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| 230 | | - | (1) The production company or qualified interactive entertainment production company217 |
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| 231 | | - | shall be allowed a tax credit equal to 20 percent of the base investment in this state; and218 |
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| 232 | | - | (2)(A) The production company or qualified interactive entertainment production219 |
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| 233 | | - | company shall be allowed an additional tax credit equal to 10 percent of such base220 |
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| 234 | | - | investment if, as determined as a result of the audit required by subsection (k) of this221 |
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| 235 | | - | Code section, the qualified production activity includes a qualified Georgia promotion. 222 |
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| 236 | | - | Such additional tax credit shall be allowed for any qualified production that includes223 |
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| 237 | | - | a qualified Georgia promotion upon its release to the general public. In lieu of the224 |
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| 238 | | - | inclusion of the Georgia promotional logo, the production company or qualified225 |
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| 239 | | - | interactive entertainment production company may offer alternative marketing226 |
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| 240 | | - | opportunities to be evaluated by the Department of Economic Development to ensure227 |
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| 241 | | - | that they offer equal or greater promotional value to the State of Georgia. The228 |
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| 242 | | - | - 9 - 24 LC 50 0918S |
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| 243 | | - | Department of Economic Development shall electronically certify to the Department229 |
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| 244 | | - | of Revenue when the requirements of this subparagraph and paragraph (2) of subsection230 |
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| 245 | | - | (d) of this Code section have been met. state certified production meets at least four of231 |
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| 246 | | - | the following criteria:232 |
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| 247 | | - | (i) At least 50 percent of the number of crew members performing services in this233 |
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| 248 | | - | state are Georgia residents;234 |
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| 249 | | - | (ii) At least 50 percent of the total number of vendors providing goods or services in235 |
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| 250 | | - | this state are Georgia vendors;236 |
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| 251 | | - | (iii) It incurs at least $30 million of production expenditures in this state;237 |
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| 252 | | - | (iv) At least 50 percent of its principal photography days occur in one or more238 |
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| 253 | | - | counties that have been underutilized by production companies as listed by the239 |
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| 254 | | - | Department of Economic Development as of January 1, 2026;240 |
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| 255 | | - | (v) At least 50 percent of its principal photography days in studio facilities are in241 |
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| 256 | | - | studio facilities in this state, including, but not limited to, soundstages and backlots,242 |
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| 257 | | - | or the company or its affiliates:243 |
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| 258 | | - | (I) Make capital improvements to a studio facility in this state that are in a form244 |
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| 259 | | - | and manner approved by the Department of Economic Development based on the245 |
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| 260 | | - | value of the capital improvements relative to the amount of tax credit sought; or 246 |
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| 261 | | - | (II) Owns a studio facility in this state or enters into a lease of at least five years in247 |
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| 262 | | - | duration with a studio facility in this state with at least 100,000 square feet of248 |
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| 263 | | - | production space, including, but not limited to, soundstages, backlots, and249 |
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| 264 | | - | production offices;250 |
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| 265 | | - | (vi) The company contracts with Georgia vendors for 20 percent of such production's251 |
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| 266 | | - | postproduction expenditures or contracts with Georgia vendors for 20 percent of such252 |
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| 267 | | - | production's visual effects expenditures;253 |
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| 268 | | - | - 10 - 24 LC 50 0918S |
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| 269 | | - | (vii) The company participates in or supports at least one Georgia workforce254 |
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| 270 | | - | development program, including, but not limited to, a Georgia Film Academy255 |
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| 271 | | - | program;256 |
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| 272 | | - | (viii) It includes a qualified Georgia promotion, or the company engages in257 |
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| 273 | | - | alternative marketing opportunities approved by the Department of Economic258 |
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| 274 | | - | Development based on a determination that such activities offer promotional value259 |
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| 275 | | - | to the state equal to or greater than the promotional value of a qualified Georgia260 |
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| 276 | | - | promotion; or261 |
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| 277 | | - | (ix) The company contracts for the recording in Georgia of elements of the state262 |
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| 278 | | - | certified production's music score or one or more songs included in the state certified263 |
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| 279 | | - | production's soundtrack, licenses music from a Georgia resident or company doing264 |
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| 280 | | - | business in Georgia, or contracts with one or more Georgia residents for the265 |
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| 281 | | - | composition or performance of music for incorporation into the state certified266 |
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| 282 | | - | production's music score or one or more songs included into the state certified267 |
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| 283 | | - | production's soundtrack.268 |
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| 284 | | - | (B) The Department of Economic Development shall prepare an annual report detailing269 |
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| 285 | | - | the alternative marketing opportunities it has approved under the provisions of270 |
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| 286 | | - | subparagraph (A) of this paragraph. The report shall include, but not be limited to:271 |
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| 287 | | - | (i) The goals and strategy behind each alternative marketing opportunity approved272 |
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| 288 | | - | pursuant to the provisions of subparagraph (A) of this paragraph;273 |
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| 289 | | - | (ii) The names of all production companies approved by the Department of Economic274 |
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| 290 | | - | Development to provide alternative marketing opportunities;275 |
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| 291 | | - | (iii) The estimated value to the state of each approved alternative marketing276 |
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| 292 | | - | opportunity compared to the estimated value of the Georgia promotional logo; and277 |
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| 293 | | - | (iv) The names of all production companies who that chose to include the Georgia278 |
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| 294 | | - | promotional logo in their its final production instead of offering the state an279 |
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| 295 | | - | alternative marketing proposal.280 |
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| 296 | | - | - 11 - 24 LC 50 0918S |
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| 297 | | - | The report required under this paragraph subparagraph shall be completed no later than281 |
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| 298 | | - | January 1 of each year and presented to each member of the House Committee on Ways282 |
|---|
| 299 | | - | and Means, the Senate Finance Committee, the Senate Economic Development and283 |
|---|
| 300 | | - | Tourism Committee, the House Committee on Economic Development and Tourism,284 |
|---|
| 301 | | - | and the Governor.285 |
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| 302 | | - | (C) The additional percentage of tax credit allowed by this paragraph and by paragraph286 |
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| 303 | | - | (2) of subsection (d) of this Code section shall not be allowed to a production company287 |
|---|
| 304 | | - | for any qualified production activity or state certified production that has not been288 |
|---|
| 305 | | - | commercially distributed in multiple markets.289 |
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| 306 | | - | (D) The additional percentage of tax credit that is allowed by this paragraph and by290 |
|---|
| 307 | | - | paragraph (2) of subsection (d) of this Code section shall not be issued final291 |
|---|
| 308 | | - | certification pursuant to subsection (l) (k) of this Code section unless and until the state292 |
|---|
| 309 | | - | certified production has been commercially distributed in multiple markets within five293 |
|---|
| 310 | | - | years of the date that the project was first certified by the Department of Economic294 |
|---|
| 311 | | - | Development.; and295 |
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| 312 | | - | (3) The base investment and the amount of the credit allowed by this subsection and by296 |
|---|
| 313 | | - | subsection (d) of this Code section with respect to a production company shall be subject297 |
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| 314 | | - | to the limitations of and any reductions required by subsection (l) (k) of this Code section.298 |
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| 315 | | - | (d) For any production company or qualified interactive entertainment production299 |
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| 316 | | - | company and its affiliates that invest in a state certified production approved by the300 |
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| 317 | | - | Department of Economic Development and whose average annual total production301 |
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| 318 | | - | expenditures in this state exceeded $30 million for 2002, 2003, and 2004, there shall be302 |
|---|
| 319 | | - | allowed an income tax credit against the tax imposed under this article. For purposes of303 |
|---|
| 320 | | - | this subsection, the excess base investment in this state is computed by taking the current304 |
|---|
| 321 | | - | year production expenditures in a state certified production and subtracting the average of305 |
|---|
| 322 | | - | the annual total production expenditures for 2002, 2003, and 2004. The tax credit shall be306 |
|---|
| 323 | | - | calculated as follows:307 |
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| 324 | | - | - 12 - 24 LC 50 0918S |
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| 325 | | - | (1) If the excess base investment by a production company and its affiliates that invest308 |
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| 326 | | - | in state certified productions in this state equals or exceeds $500,000.00 $750,000.00 for309 |
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| 327 | | - | a single state certified production or $8 million for all state certified productions, or310 |
|---|
| 328 | | - | $250,000.00 for qualified interactive entertainment production activities on or after311 |
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| 329 | | - | January 1, 2018, the production company or qualified interactive entertainment312 |
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| 330 | | - | production company and its affiliates shall be allowed a tax credit of 20 percent of such313 |
|---|
| 331 | | - | excess base investment; and314 |
|---|
| 332 | | - | (2)(A) The production company or qualified interactive entertainment production315 |
|---|
| 333 | | - | company and its affiliates shall be allowed an additional tax credit equal to 10 percent of316 |
|---|
| 334 | | - | the excess base investment if, as determined as a result of the audit required by subsection317 |
|---|
| 335 | | - | (k) of this Code section, the qualified production activities include a qualified Georgia318 |
|---|
| 336 | | - | promotion. Such additional tax credit shall be allowed for any qualified production that319 |
|---|
| 337 | | - | includes a qualified Georgia promotion upon its release to the general public. In lieu of320 |
|---|
| 338 | | - | the inclusion of the Georgia promotional logo, the production company or qualified321 |
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| 339 | | - | interactive entertainment production company may offer marketing opportunities to be322 |
|---|
| 340 | | - | evaluated by the Department of Economic Development to ensure that they offer equal323 |
|---|
| 341 | | - | or greater promotional value to the State of Georgia state certified production meets at324 |
|---|
| 342 | | - | least four of the criteria provided in divisions (c)(2)(A)(i) through (c)(2)(A)(ix).325 |
|---|
| 343 | | - | (B) The Department of Economic Development shall prepare an annual report detailing326 |
|---|
| 344 | | - | the marketing opportunities it has approved under the provisions of subparagraph (A)327 |
|---|
| 345 | | - | of this paragraph. The report shall include, but not be limited to:328 |
|---|
| 346 | | - | (i) The goals and strategy behind each marketing opportunity approved pursuant to329 |
|---|
| 347 | | - | the provisions of subparagraph (A) of this paragraph;330 |
|---|
| 348 | | - | (ii) The names of all production companies approved by the Department of Economic331 |
|---|
| 349 | | - | Development to provide alternative marketing opportunities;332 |
|---|
| 350 | | - | (iii) The estimated value to the state of each approved alternative marketing333 |
|---|
| 351 | | - | opportunity compared to the estimated value of the Georgia promotional logo; and334 |
|---|
| 352 | | - | - 13 - 24 LC 50 0918S |
|---|
| 353 | | - | (iv) The names of all production companies who chose to include the Georgia335 |
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| 354 | | - | promotional logo in their final production instead of offering the state an alternative336 |
|---|
| 355 | | - | marketing proposal.337 |
|---|
| 356 | | - | The report required under this paragraph shall be completed no later than January 1 of338 |
|---|
| 357 | | - | each year and presented to each member of the House Committee on Ways and Means,339 |
|---|
| 358 | | - | the Senate Finance Committee, the Senate Economic Development and Tourism340 |
|---|
| 359 | | - | Committee, the House Committee on Economic Development and Tourism, and the341 |
|---|
| 360 | | - | Governor.342 |
|---|
| 361 | | - | (e)(1) In no event shall the aggregate amount of tax credits allowed under this Code343 |
|---|
| 362 | | - | section for qualified interactive entertainment production companies and affiliates exceed344 |
|---|
| 363 | | - | $25 million for taxable years beginning on or after January 1, 2013, and before January345 |
|---|
| 364 | | - | 1, 2014. The maximum credit for any qualified interactive entertainment production346 |
|---|
| 365 | | - | company and its affiliates shall be $5 million for such taxable year. When the $25347 |
|---|
| 366 | | - | million cap is reached, the tax credit for qualified interactive entertainment production348 |
|---|
| 367 | | - | companies shall expire for such taxable years.349 |
|---|
| 368 | | - | (2) For taxable years beginning on or after January 1, 2014, and before January 1, 2015,350 |
|---|
| 369 | | - | the amount of tax credits allowed under this Code section for qualified interactive351 |
|---|
| 370 | | - | entertainment production companies and affiliates shall not exceed $12.5 million.352 |
|---|
| 371 | | - | (3) For taxable years beginning on or after January 1, 2015, and before January 1, 2016,353 |
|---|
| 372 | | - | the amount of tax credits allowed under this Code section for qualified interactive354 |
|---|
| 373 | | - | entertainment production companies and affiliates shall not exceed $12.5 million.355 |
|---|
| 374 | | - | (4) For taxable years beginning on or after January 1, 2016, and before January 1, 2018,356 |
|---|
| 375 | | - | the amount of tax credits allowed under this Code section for qualified interactive357 |
|---|
| 376 | | - | entertainment production companies and affiliates shall not exceed $12.5 million for each358 |
|---|
| 377 | | - | taxable year.359 |
|---|
| 378 | | - | (5)(A) For taxable years beginning on or after January 1, 2018, the amount of tax360 |
|---|
| 379 | | - | credits allowed under this Code section for qualified interactive entertainment361 |
|---|
| 380 | | - | - 14 - 24 LC 50 0918S |
|---|
| 381 | | - | production companies and affiliates shall not exceed $12.5 million for each taxable362 |
|---|
| 382 | | - | year.363 |
|---|
| 383 | | - | (B) Beginning on or after January 1, 2018, qualified interactive entertainment364 |
|---|
| 384 | | - | production companies are eligible for tax credits for prereleased interactive game365 |
|---|
| 385 | | - | production; provided, however, that such credits shall not be available for a period366 |
|---|
| 386 | | - | which exceeds three years.367 |
|---|
| 387 | | - | (6) The maximum allowable credit claimed for any qualified interactive entertainment368 |
|---|
| 388 | | - | production company and its affiliates shall not exceed $1.5 million in any single year.369 |
|---|
| 389 | | - | (7) Qualified interactive entertainment production companies seeking to claim a tax370 |
|---|
| 390 | | - | credit under the provisions of this Code section shall submit an application to the371 |
|---|
| 391 | | - | commissioner for preapproval of such tax credit. The commissioner shall be authorized372 |
|---|
| 392 | | - | to promulgate any rules and regulations and forms necessary to implement and administer373 |
|---|
| 393 | | - | the provisions of this Code section. The commissioner shall preapprove the tax credits374 |
|---|
| 394 | | - | based on the order in which properly completed applications were submitted. In the375 |
|---|
| 395 | | - | event that two or more applications were submitted on the same day and the amount of376 |
|---|
| 396 | | - | funds available will not be sufficient to fully fund the tax credits requested, the377 |
|---|
| 397 | | - | commissioner shall prorate the available funds between or among the applicants.378 |
|---|
| 398 | | - | (8) No qualified interactive entertainment production company shall be allowed to claim379 |
|---|
| 399 | | - | an amount of tax credits under this Code section for any single year in excess of its total380 |
|---|
| 400 | | - | aggregate payroll expended to employees working within this state for the calendar year381 |
|---|
| 401 | | - | that the qualified interactive entertainment production company claims the tax credits. 382 |
|---|
| 402 | | - | Any amount in excess of such limit shall not be eligible for carry forward to the383 |
|---|
| 403 | | - | succeeding years' tax liability, nor shall such excess amount be eligible for use against384 |
|---|
| 404 | | - | the qualified interactive entertainment production company's quarterly or monthly385 |
|---|
| 405 | | - | payment under Code Section 48-7-103, nor shall such excess amount be assigned, sold,386 |
|---|
| 406 | | - | or transferred to any other taxpayer.387 |
|---|
| 407 | | - | - 15 - 24 LC 50 0918S |
|---|
| 408 | | - | (9) Before the Department of Economic Development issues its approval to the qualified388 |
|---|
| 409 | | - | interactive entertainment production company for the qualified production activities389 |
|---|
| 410 | | - | related to interactive entertainment, the qualified interactive entertainment production390 |
|---|
| 411 | | - | company must certify to the department that:391 |
|---|
| 412 | | - | (A) The qualified interactive entertainment production company maintains a business392 |
|---|
| 413 | | - | location physically located in this state; and393 |
|---|
| 414 | | - | (B) The qualified interactive entertainment production company had expended a total394 |
|---|
| 415 | | - | aggregate payroll of $500,000.00 or more, or $250,000.00 or more on or after January395 |
|---|
| 416 | | - | 1, 2018, for employees working within this state during the taxable year of the qualified396 |
|---|
| 417 | | - | interactive entertainment production company.397 |
|---|
| 418 | | - | The department shall issue a certification that the qualified interactive entertainment398 |
|---|
| 419 | | - | production company meets the requirements of this paragraph; provided, however, that399 |
|---|
| 420 | | - | the department shall not issue any certifications before July 1, 2014. The qualified400 |
|---|
| 421 | | - | interactive entertainment production company shall provide such certification to the401 |
|---|
| 422 | | - | Department of Economic Development. The Department of Economic Development402 |
|---|
| 423 | | - | shall not issue its approval until it receives such certification.403 |
|---|
| 424 | | - | (10)(A) For taxable years beginning on or after January 1, 2016, the qualified404 |
|---|
| 425 | | - | interactive entertainment production company shall report to the Department of405 |
|---|
| 426 | | - | Revenue on its Georgia income tax return the monthly average number of full-time406 |
|---|
| 427 | | - | employees subject to Georgia income tax withholding for the taxable year as provided407 |
|---|
| 428 | | - | in subparagraphs (B) and (C) of this paragraph. For purposes of this paragraph, a408 |
|---|
| 429 | | - | full-time employee shall mean a person who performs a job that requires a minimum409 |
|---|
| 430 | | - | of 35 hours a week, and pays at or above the average wage earned in the county with410 |
|---|
| 431 | | - | the lowest average wage earned in this state, as reported in the most recently available411 |
|---|
| 432 | | - | annual issue of the Georgia Employment and Wages Averages Report of the412 |
|---|
| 433 | | - | Department of Labor.413 |
|---|
| 434 | | - | - 16 - 24 LC 50 0918S |
|---|
| 435 | | - | (B) For taxable years beginning on or after January 1, 2016, and before January 1,414 |
|---|
| 436 | | - | 2017, the qualified interactive entertainment production company shall report such415 |
|---|
| 437 | | - | number for such taxable year and separately for each of the prior two taxable years.416 |
|---|
| 438 | | - | (C) For taxable years beginning on or after January 1, 2017, the qualified interactive417 |
|---|
| 439 | | - | entertainment production company shall report such number for each respective taxable418 |
|---|
| 440 | | - | year.419 |
|---|
| 441 | | - | (D) Notwithstanding Code Sections 48-2-15, 48-7-60, and 48-7-61, for such taxable420 |
|---|
| 442 | | - | years, the commissioner shall report yearly to the House Committee on Ways and421 |
|---|
| 443 | | - | Means and the Senate Finance Committee. The report shall include the name, tax year422 |
|---|
| 444 | | - | beginning, and monthly average number of full-time employees for each qualified423 |
|---|
| 445 | | - | interactive entertainment production company. The first report shall be submitted by424 |
|---|
| 446 | | - | June 30, 2016, and each year thereafter by June 30.425 |
|---|
| 447 | | - | (f)(1)(e)(1) Where If the amount of such credit or credits tax credits allowed under this426 |
|---|
| 448 | | - | Code section exceeds the production company's or qualified interactive entertainment427 |
|---|
| 449 | | - | production company's liability for such taxes owed pursuant to this article in a taxable428 |
|---|
| 450 | | - | year, the excess may be taken as a credit against such production company's or qualified429 |
|---|
| 451 | | - | interactive entertainment production company's quarterly or monthly payment under430 |
|---|
| 452 | | - | Code Section 48-7-103. Each employee whose employer receives credit against such431 |
|---|
| 453 | | - | production company's or qualified interactive entertainment production company's432 |
|---|
| 454 | | - | quarterly or monthly payment under Code Section 48-7-103 shall receive credit against433 |
|---|
| 455 | | - | his or her income tax liability under Code Section 48-7-20 for the corresponding taxable434 |
|---|
| 456 | | - | year for the full amount which would be credited against such liability prior to the435 |
|---|
| 457 | | - | application of the credit provided for in this subsection. Credits against quarterly or436 |
|---|
| 458 | | - | monthly payments under Code Section 48-7-103 and credits against liability under Code437 |
|---|
| 459 | | - | Section 48-7-20 established by this subsection shall not constitute income to the438 |
|---|
| 460 | | - | production company or qualified interactive entertainment production company.439 |
|---|
| 461 | | - | - 17 - 24 LC 50 0918S |
|---|
| 462 | | - | (2) If a production company and its affiliates, or a qualified interactive entertainment440 |
|---|
| 463 | | - | production company and its affiliates, claim the a credit authorized under Code Section441 |
|---|
| 464 | | - | 48-7-40, 48-7-40.1, 48-7-40.17, or 48-7-40.18, then the production company and its442 |
|---|
| 465 | | - | affiliates, or the qualified interactive entertainment production company and its affiliates,443 |
|---|
| 466 | | - | will shall only be allowed to claim the credit authorized under this Code section to the444 |
|---|
| 467 | | - | extent that the Georgia resident employees included in the credit calculation authorized445 |
|---|
| 468 | | - | under this Code section and taken by the production company and its affiliates, or the446 |
|---|
| 469 | | - | qualified interactive entertainment production company and its affiliates, on such tax447 |
|---|
| 470 | | - | return under this Code section have been permanently excluded from the credit448 |
|---|
| 471 | | - | authorized under Code Section 48-7-40, 48-7-40.1, 48-7-40.17, or 48-7-40.18.449 |
|---|
| 472 | | - | (g)(f) Any tax credits with respect to a state certified production earned by a production450 |
|---|
| 473 | | - | company or qualified interactive entertainment production company and previously451 |
|---|
| 474 | | - | claimed but not used by such production company or qualified interactive entertainment452 |
|---|
| 475 | | - | production company against its income tax liability may be transferred or sold in whole or453 |
|---|
| 476 | | - | in part by such production company or qualified interactive entertainment production454 |
|---|
| 477 | | - | company to another Georgia taxpayer,; provided, however, that such transfers and sales455 |
|---|
| 478 | | - | shall be subject to the following conditions:456 |
|---|
| 479 | | - | (1)(A) The total amount of all transfers or sales in a calendar year shall not exceed an457 |
|---|
| 480 | | - | amount equal to 2.3 percent of the total budget in the General Appropriations Act as458 |
|---|
| 481 | | - | passed and signed into law for the corresponding fiscal year.459 |
|---|
| 482 | | - | (B) The Department of Revenue shall issue tax credit certificates that identify the460 |
|---|
| 483 | | - | calendar year in which the credit may first be transferred or sold. Such tax credit461 |
|---|
| 484 | | - | certificates shall identify the current calendar year as the first year such certificates may462 |
|---|
| 485 | | - | be transferred or sold for the amount of credits allowed to be transferred or sold463 |
|---|
| 486 | | - | pursuant to subparagraph (A) of this paragraph.464 |
|---|
| 487 | | - | (C) Any tax credit certificates available to be issued by the Department of Revenue in465 |
|---|
| 488 | | - | the current calendar year in excess of the amount of credits allowed to be transferred466 |
|---|
| 489 | | - | - 18 - 24 LC 50 0918S |
|---|
| 490 | | - | or sold pursuant to subparagraph (A) of this paragraph shall be issued and available to467 |
|---|
| 491 | | - | be transferred or sold in the next calendar year for which such amount has not been468 |
|---|
| 492 | | - | reached in the order in which final certificates were available to be issued by the469 |
|---|
| 493 | | - | department but for reaching the annual limit, and the amount of such credit certificates470 |
|---|
| 494 | | - | shall count toward the amount of credits allowed to be transferred or sold pursuant to471 |
|---|
| 495 | | - | subparagraph (A) of this paragraph for that year.472 |
|---|
| 496 | | - | (D) A production company may elect to not transfer or sell in whole or in part tax473 |
|---|
| 497 | | - | credits with respect to a state certified production to another Georgia taxpayer pursuant474 |
|---|
| 498 | | - | to subsection (f) of this Code section and may use such tax credit in the taxable year in475 |
|---|
| 499 | | - | which it is issued final certification. Tax credits that a production company makes an476 |
|---|
| 500 | | - | election to not sell or transfer shall not count toward the maximum amount allowed to477 |
|---|
| 501 | | - | be transferred or sold pursuant to subparagraph (A) of this paragraph. The production478 |
|---|
| 502 | | - | company shall make the election on a form and in a manner provided by the479 |
|---|
| 503 | | - | department.480 |
|---|
| 504 | | - | (E) A tax credit certificate issued pursuant to subparagraph (B) or subparagraph (C)481 |
|---|
| 505 | | - | of this paragraph shall count toward the amount of credits allowed to be transferred or482 |
|---|
| 506 | | - | sold pursuant to subparagraph (A) of this paragraph only in the year such certificate483 |
|---|
| 507 | | - | was issued by the Department of Revenue;484 |
|---|
| 508 | | - | (1)(2) Such production company or qualified interactive entertainment production485 |
|---|
| 509 | | - | company may make only a single transfer or sale of tax credits earned in a taxable year;486 |
|---|
| 510 | | - | provided, however, that the transfer or sale may involve one or more transferees;487 |
|---|
| 511 | | - | (2)(3) Such production company or qualified interactive entertainment production488 |
|---|
| 512 | | - | company shall submit to the Department of Economic Development and to the489 |
|---|
| 513 | | - | Department of Revenue a written notification of any transfer or sale of tax credits within490 |
|---|
| 514 | | - | 30 days after the transfer or sale of such tax credits. The notification shall include such491 |
|---|
| 515 | | - | production company's or qualified interactive entertainment production company's tax492 |
|---|
| 516 | | - | credit balance prior to transfer, the credit certificate number, the remaining balance after493 |
|---|
| 517 | | - | - 19 - 24 LC 50 0918S |
|---|
| 518 | | - | transfer, all tax identification numbers for each transferee, the date of transfer, the amount494 |
|---|
| 519 | | - | transferred, and any other information required by the Department of Economic495 |
|---|
| 520 | | - | Development or the Department of Revenue;496 |
|---|
| 521 | | - | (3)(4) Failure to comply with this subsection shall result in the disallowance of the tax497 |
|---|
| 522 | | - | credit until the production company or qualified interactive entertainment production498 |
|---|
| 523 | | - | company is in full compliance;499 |
|---|
| 524 | | - | (4)(5) The transfer or sale of this tax credit does not extend the time in which such tax500 |
|---|
| 525 | | - | credit can be used. The carry-forward period for a tax credit that is transferred or sold501 |
|---|
| 526 | | - | shall begin on the date on which the tax credit was originally earned or for a tax credit502 |
|---|
| 527 | | - | subject to the provisions of subsection (l) (k) of this Code section, the date on which the503 |
|---|
| 528 | | - | final certification for such tax credit was issued pursuant to said subsection;504 |
|---|
| 529 | | - | (5)(6) A transferee shall have only such rights to claim and use the tax credit that were505 |
|---|
| 530 | | - | available to such production company or qualified interactive entertainment production506 |
|---|
| 531 | | - | company at the time of the transfer, except for the use of the credit in paragraph (l) (k)507 |
|---|
| 532 | | - | of subsection (f) (e) of this Code section. To the extent that such production company508 |
|---|
| 533 | | - | or qualified interactive entertainment production company did not have rights to claim509 |
|---|
| 534 | | - | or use the tax credit at the time of the transfer, the Department of Revenue shall either510 |
|---|
| 535 | | - | disallow the tax credit claimed by the transferee or recapture the tax credit from the511 |
|---|
| 536 | | - | transferee; provided, however, that the Department of Revenue shall not recapture a tax512 |
|---|
| 537 | | - | credit from the transferee if the tax credit was issued a valid final certification pursuant513 |
|---|
| 538 | | - | to subsection (l) (k) of this Code section. The transferee's recourse is against such514 |
|---|
| 539 | | - | production company or qualified interactive entertainment production company515 |
|---|
| 540 | | - | transferor; and516 |
|---|
| 541 | | - | (6)(7) The transferee must shall acquire the tax credits in this Code section for a517 |
|---|
| 542 | | - | minimum of 60 percent of the amount of the tax credits so transferred.518 |
|---|
| 543 | | - | - 20 - 24 LC 50 0918S |
|---|
| 544 | | - | (h) The credit granted under this Code section shall be subject to the following conditions519 |
|---|
| 545 | | - | and limitations; provided, however, that this subsection shall not apply to a production520 |
|---|
| 546 | | - | company subject to the requirements of subsection (h.1) or (l) of this Code section:521 |
|---|
| 547 | | - | (1) The credit may be taken beginning with the taxable year in which the production522 |
|---|
| 548 | | - | company or qualified interactive entertainment production company has met the523 |
|---|
| 549 | | - | investment requirement. For each year in which such production company or qualified524 |
|---|
| 550 | | - | interactive entertainment production company either claims or transfers the credit, the525 |
|---|
| 551 | | - | production company or qualified interactive entertainment production company shall526 |
|---|
| 552 | | - | attach a schedule to the production company's or qualified interactive entertainment527 |
|---|
| 553 | | - | production company's Georgia income tax return which will set forth the following528 |
|---|
| 554 | | - | information, as a minimum:529 |
|---|
| 555 | | - | (A) A description of the qualified production activities, along with the certification530 |
|---|
| 556 | | - | from the Department of Economic Development;531 |
|---|
| 557 | | - | (B) A detailed listing of the employee names, social security numbers, and Georgia532 |
|---|
| 558 | | - | wages when salaries are included in the base investment;533 |
|---|
| 559 | | - | (C) The amount of tax credit claimed for the taxable year;534 |
|---|
| 560 | | - | (D) Any tax credit previously taken by the production company or qualified interactive535 |
|---|
| 561 | | - | entertainment production company against Georgia income tax liabilities or the536 |
|---|
| 562 | | - | production company's or qualified interactive entertainment production company's537 |
|---|
| 563 | | - | quarterly or monthly payments under Code Section 48-7-103;538 |
|---|
| 564 | | - | (E) The amount of tax credit carried over from prior years;539 |
|---|
| 565 | | - | (F) The amount of tax credit utilized by the production company or qualified540 |
|---|
| 566 | | - | interactive entertainment production company in the current taxable year; and541 |
|---|
| 567 | | - | (G) The amount of tax credit to be carried over to subsequent tax years;542 |
|---|
| 568 | | - | (2) In the initial year in which the production company or qualified interactive543 |
|---|
| 569 | | - | entertainment production company claims the credit granted in this Code section, the544 |
|---|
| 570 | | - | production company or qualified interactive entertainment production company shall545 |
|---|
| 571 | | - | - 21 - 24 LC 50 0918S |
|---|
| 572 | | - | include in the description of the qualified production activities required by subparagraph546 |
|---|
| 573 | | - | (A) of paragraph (1) of this subsection information which demonstrates that the activities547 |
|---|
| 574 | | - | included in the base investment or excess base investment equal or exceed $500,000.00548 |
|---|
| 575 | | - | during such year, or $250,000.00 on or after January 1, 2018, for qualified interactive549 |
|---|
| 576 | | - | entertainment production companies; and550 |
|---|
| 577 | | - | (3) In no event shall the amount of the tax credit under this Code section for a taxable551 |
|---|
| 578 | | - | year exceed the production company's or qualified interactive entertainment production552 |
|---|
| 579 | | - | company's income tax liability. Any unused credit amount shall be allowed to be carried553 |
|---|
| 580 | | - | forward for five years from the close of the taxable year in which the investment554 |
|---|
| 581 | | - | occurred. No such credit shall be allowed the production company or qualified555 |
|---|
| 582 | | - | interactive entertainment production company against prior years' tax liability.556 |
|---|
| 583 | | - | (h.1)(1) For any projects certified by the Department of Economic Development on or557 |
|---|
| 584 | | - | after January 1, 2021, the558 |
|---|
| 585 | | - | (f.1)(1) As used in this subsection, the term 'Georgia based qualified production facility'559 |
|---|
| 586 | | - | means a facility consisting of purpose-built studio sound stages:560 |
|---|
| 587 | | - | (A) That was substantially completed between January 1, 2023, and June 30, 2027, and561 |
|---|
| 588 | | - | in which the construction investment for such facility was in excess of $100 million562 |
|---|
| 589 | | - | dollars for such purpose-built studio sound stages; or563 |
|---|
| 590 | | - | (B) That has more than 1.5 million square feet of stage space.564 |
|---|
| 591 | | - | (2) The conditions provided in paragraph (1) of subsection (f) shall not apply to tax565 |
|---|
| 592 | | - | credits for state certified productions that meet one of the following criteria:566 |
|---|
| 593 | | - | (A) The state certified production filmed at least 50 percent of its principal567 |
|---|
| 594 | | - | photography days in a Georgia based qualified production facility; or568 |
|---|
| 595 | | - | (B) The state certified production filmed at least 50 percent of its principal569 |
|---|
| 596 | | - | photography days in one or more counties that have been underutilized by production570 |
|---|
| 597 | | - | companies as listed by the Department of Economic Development as of January 1,571 |
|---|
| 598 | | - | 2026.572 |
|---|
| 599 | | - | - 22 - 24 LC 50 0918S |
|---|
| 600 | | - | (3) To qualify for the exemption from the conditions provided in paragraph (1) of573 |
|---|
| 601 | | - | subsection (f) pursuant to this subsection, the Georgia based qualified production facility574 |
|---|
| 602 | | - | shall submit such documentation as required by the Department of Economic575 |
|---|
| 603 | | - | Development to show that the criteria of paragraph (2) of this subsection have been met. 576 |
|---|
| 604 | | - | The Department of Economic Development shall certify each state certified production577 |
|---|
| 605 | | - | that meets such requirements and submit such certification to the Department of Revenue.578 |
|---|
| 606 | | - | (g)(1) The tax credit provided for in this Code section if covered under the schedule579 |
|---|
| 607 | | - | provided in paragraph (1) of subsection (l) of this Code section shall not be allowed,580 |
|---|
| 608 | | - | claimed, assigned, sold, transferred, or utilized in any manner by a production company581 |
|---|
| 609 | | - | until final certification is issued pursuant to subsection (l) (k) of this Code section and582 |
|---|
| 610 | | - | except under the following conditions and limitations of provided in this subsection.583 |
|---|
| 611 | | - | (2) A production company seeking the tax credit allowed by this Code section shall584 |
|---|
| 612 | | - | apply for the tax credit in the manner provided by the Department of Revenue within one585 |
|---|
| 613 | | - | year from the date that it completes a state certified production. The following586 |
|---|
| 614 | | - | information shall be submitted with the application or prior to the commencement of an587 |
|---|
| 615 | | - | audit required by subsection (l) (k) of this Code section:588 |
|---|
| 616 | | - | (A) A description of the state certified production, along with its certification as a state589 |
|---|
| 617 | | - | certified production by the Department of Economic Development;590 |
|---|
| 618 | | - | (B) A detailed accounting of all qualified production activities and the attendant591 |
|---|
| 619 | | - | production expenditures included in the base investment for the state certified592 |
|---|
| 620 | | - | production;593 |
|---|
| 621 | | - | (C) A detailed listing of the employee names, social security numbers, and Georgia594 |
|---|
| 622 | | - | wages when salaries are included in the base investment;595 |
|---|
| 623 | | - | (D) Receipts for tangible personal property included in the base investment as596 |
|---|
| 624 | | - | requested by the Department of Revenue or the eligible auditor hired to conduct the597 |
|---|
| 625 | | - | audit for the state certified production;598 |
|---|
| 626 | | - | - 23 - 24 LC 50 0918S |
|---|
| 627 | | - | (E) Contracts for goods or services included in the base investment as requested by the599 |
|---|
| 628 | | - | Department of Revenue or the eligible auditor hired to conduct the audit for the state600 |
|---|
| 629 | | - | certified production;601 |
|---|
| 630 | | - | (F) An Internal Revenue Service Form W-9 completed and issued by each vendor for602 |
|---|
| 631 | | - | which expenditures are included in the base investment as requested by the Department603 |
|---|
| 632 | | - | of Revenue or the eligible auditor hired to conduct the audit for the state certified604 |
|---|
| 633 | | - | production;605 |
|---|
| 634 | | - | (G) Notification as provided for in paragraph (7) of subsection (l) (k) of this Code606 |
|---|
| 635 | | - | section of any intent to utilize an eligible auditor;607 |
|---|
| 636 | | - | (H) A description of the status of the distribution of the state certified production and608 |
|---|
| 637 | | - | information related to any qualified Georgia promotion connected with such609 |
|---|
| 638 | | - | production;610 |
|---|
| 639 | | - | (I) For any projects certified by the Department of Economic Development on or after611 |
|---|
| 640 | | - | January 1, 2026, a description of the status of satisfying the requirements of612 |
|---|
| 641 | | - | subparagraph (c)(2)(A) or paragraph (2) of subsection (d) if the total amount of the tax613 |
|---|
| 642 | | - | credit sought for the state certified production includes the additional credit allowed in614 |
|---|
| 643 | | - | subparagraph (c)(2)(A) or paragraph (2) of subsection (d);615 |
|---|
| 644 | | - | (I)(J) The total amount of the tax credit sought for the state certified production; and616 |
|---|
| 645 | | - | (J)(K) A statement affirming that the contents of the application are true and correct.617 |
|---|
| 646 | | - | (3) If a production company is issued final certification of a tax credit pursuant to618 |
|---|
| 647 | | - | subsection (l) (k) of this Code section, such tax credit shall be considered earned in the619 |
|---|
| 648 | | - | taxable year in which it is issued final certification.620 |
|---|
| 649 | | - | (4) For each year in which the production company either claims or transfers the tax621 |
|---|
| 650 | | - | credit, the production company shall attach a schedule to the production company's622 |
|---|
| 651 | | - | Georgia income tax return which will shall set forth the following information, as a623 |
|---|
| 652 | | - | minimum:624 |
|---|
| 653 | | - | (A) The amount of tax credit claimed for the taxable year;625 |
|---|
| 654 | | - | - 24 - 24 LC 50 0918S |
|---|
| 655 | | - | (B) Any tax credit previously taken by the production company against Georgia626 |
|---|
| 656 | | - | income tax liabilities or the production company's quarterly or monthly payments under627 |
|---|
| 657 | | - | Code Section 48-7-103;628 |
|---|
| 658 | | - | (C) The amount of tax credit carried over from prior years;629 |
|---|
| 659 | | - | (D) The amount of tax credit utilized by the production company in the current taxable630 |
|---|
| 660 | | - | year; and631 |
|---|
| 661 | | - | (E) The amount of tax credit to be carried over to subsequent tax years.632 |
|---|
| 662 | | - | (5) In no event shall the amount of the tax credit subject to subsection (l) (k) of this Code633 |
|---|
| 663 | | - | section for a taxable year exceed the production company's income tax liability. Any634 |
|---|
| 664 | | - | unused credit amount shall be allowed to be carried forward for three years from the close635 |
|---|
| 665 | | - | of the taxable year in which the tax credit was issued its final certification pursuant to636 |
|---|
| 666 | | - | subsection (l) (k) of this Code section. No such credit shall be allowed the production637 |
|---|
| 667 | | - | company against prior years' tax liability.638 |
|---|
| 668 | | - | (6) This subsection shall not apply to qualified interactive entertainment production639 |
|---|
| 669 | | - | companies.640 |
|---|
| 670 | | - | (i)(h)(1) The Department of Economic Development shall:641 |
|---|
| 671 | | - | (A) Certify each production that qualifies determine through the promulgation of rules642 |
|---|
| 672 | | - | and regulations what projects qualify for the tax credits authorized under paragraph (1)643 |
|---|
| 673 | | - | of subsection (c) of this Code section and paragraph (1) of subsection (d) of this Code644 |
|---|
| 674 | | - | section.;645 |
|---|
| 675 | | - | (B) Establish an approval process for any criteria that require approval from the646 |
|---|
| 676 | | - | Department of Economic Development as provided in divisions (c)(2)(A)(v) and647 |
|---|
| 677 | | - | (c)(2)(A)(viii) of this Code section;648 |
|---|
| 678 | | - | (C) Submit such certifications and approvals Certification shall be submitted to the state649 |
|---|
| 679 | | - | revenue commissioner; and650 |
|---|
| 680 | | - | (D) Promulgate rules and regulations as are necessary to implement this subsection.651 |
|---|
| 681 | | - | - 25 - 24 LC 50 0918S |
|---|
| 682 | | - | (2) The Department of Economic Development may charge reasonable fees associated652 |
|---|
| 683 | | - | with the certification process established pursuant to this paragraph.653 |
|---|
| 684 | | - | (3) If the Department of Economic Development prevails in court in an appeal of the654 |
|---|
| 685 | | - | denial of certification, the production company shall pay all court costs.655 |
|---|
| 686 | | - | (j)(i) The state revenue commissioner shall promulgate such rules and regulations as are656 |
|---|
| 687 | | - | necessary to implement and administer this Code section.657 |
|---|
| 688 | | - | (k)(j) Any production company, except as provided in subsection (l) (k) of this Code658 |
|---|
| 689 | | - | section, or qualified interactive entertainment production company claiming, transferring,659 |
|---|
| 690 | | - | or selling the tax credit shall be required to reimburse the Department of Revenue for any660 |
|---|
| 691 | | - | department initiated audits relating to the tax credit. This subsection shall not apply to661 |
|---|
| 692 | | - | routine tax audits of a taxpayer which may include the review of the credit provided in this662 |
|---|
| 693 | | - | Code section.663 |
|---|
| 694 | | - | (l)(k)(1)(A) For any project certified by the Department of Economic Development on664 |
|---|
| 695 | | - | or after January 1, 2021, a tax credit allowed by this Code section to a production665 |
|---|
| 696 | | - | company shall not be claimed, assigned, sold, transferred, or utilized in any manner until666 |
|---|
| 697 | | - | the production company applies for the tax credit as provided in subsection (h.1) of this667 |
|---|
| 698 | | - | Code section and the department issues a final certification of the tax credit pursuant to668 |
|---|
| 699 | | - | this subsection if the total amount of such tax credit sought for the project exceeds $2.5669 |
|---|
| 700 | | - | million.670 |
|---|
| 701 | | - | (B) For any project certified by the Department of Economic Development on or after671 |
|---|
| 702 | | - | January 1, 2022, a tax credit allowed by this Code section to a production company672 |
|---|
| 703 | | - | shall not be claimed, assigned, sold, transferred, or utilized in any manner until the673 |
|---|
| 704 | | - | production company applies for the tax credit as provided in subsection (h.1) of this674 |
|---|
| 705 | | - | Code section and the department issues a final certification of the tax credit pursuant675 |
|---|
| 706 | | - | to this subsection if the total amount of such tax credit sought for the project exceeds676 |
|---|
| 707 | | - | $1.25 million.677 |
|---|
| 708 | | - | - 26 - 24 LC 50 0918S |
|---|
| 709 | | - | (C) For any project certified by the Department of Economic Development on or after678 |
|---|
| 710 | | - | January 1, 2023, a No tax credit allowed by this Code section to a production company679 |
|---|
| 711 | | - | shall not be claimed, assigned, sold, transferred, or utilized in any manner until the680 |
|---|
| 712 | | - | production company applies for the tax credit as provided in subsection (h.1) (g) of this681 |
|---|
| 713 | | - | Code section and the department issues a final certification of the tax credit pursuant682 |
|---|
| 714 | | - | to this subsection.683 |
|---|
| 715 | | - | (2) In accordance with the schedule provided in paragraph (1) of this subsection, prior684 |
|---|
| 716 | | - | Prior to certifying a tax credit pursuant to this Code section, the Department of Revenue685 |
|---|
| 717 | | - | shall conduct or cause to be conducted an audit of each tax credit allowed by this Code686 |
|---|
| 718 | | - | section by either the department or an independent third party certified by the department687 |
|---|
| 719 | | - | in accordance with paragraph (3) of this subsection as an eligible auditor.688 |
|---|
| 720 | | - | (3)(A) The Department of Revenue shall provide for the certification and689 |
|---|
| 721 | | - | decertification of certified public accountants as eligible auditors.690 |
|---|
| 722 | | - | (B) To obtain certification as an eligible auditor, an accountant shall:691 |
|---|
| 723 | | - | (i) Register with the department;692 |
|---|
| 724 | | - | (ii) Maintain its registration with the Georgia State Board of Accountancy;693 |
|---|
| 725 | | - | (iii) Agree to and be capable of completing audits related to this Code section in694 |
|---|
| 726 | | - | accordance with this Code section and procedures developed by the department;695 |
|---|
| 727 | | - | (iv) Successfully complete all training required by the department;696 |
|---|
| 728 | | - | (v) Pay to the department a registration fee that the department shall set in an amount697 |
|---|
| 729 | | - | that reflects the expenses incurred by the department as a result of this paragraph; and698 |
|---|
| 730 | | - | (vi) Post and maintain any bond that the department establishes may require for each699 |
|---|
| 731 | | - | eligible auditor.700 |
|---|
| 732 | | - | (C) The Department of Revenue shall decertify an eligible auditor if such auditor:701 |
|---|
| 733 | | - | (i) Fails to meet the conditions or comply with the provisions of subparagraph (B) of702 |
|---|
| 734 | | - | this paragraph; or703 |
|---|
| 735 | | - | - 27 - 24 LC 50 0918S |
|---|
| 736 | | - | (ii) Completes an audit and violates the requirements of subparagraph (E) of704 |
|---|
| 737 | | - | paragraph (4) of this subsection.705 |
|---|
| 738 | | - | (D) The Department of Revenue may decertify an eligible auditor if such auditor fails706 |
|---|
| 739 | | - | to complete an audit in accordance with subparagraph (A), (B), (C), (D), (F), or (G) of707 |
|---|
| 740 | | - | paragraph (4) of this subsection or meets any other grounds for decertification as708 |
|---|
| 741 | | - | provided in regulations promulgated by the department.709 |
|---|
| 742 | | - | (4) Each audit shall:710 |
|---|
| 743 | | - | (A) Be completed in accordance with this Code section and procedures developed by711 |
|---|
| 744 | | - | the department;712 |
|---|
| 745 | | - | (B) Utilize sampling methods that the department may adopt;713 |
|---|
| 746 | | - | (C) Follow regulations that shall be published by the department regarding714 |
|---|
| 747 | | - | expenditures incurred with related persons or related members as such terms are715 |
|---|
| 748 | | - | defined in Code Section 48-7-28.3;716 |
|---|
| 749 | | - | (D) Verify each reported expenditure that is included in the audit and identify and717 |
|---|
| 750 | | - | exclude each such expenditure that does not fully meet the conditions of this Code718 |
|---|
| 751 | | - | section;719 |
|---|
| 752 | | - | (E) Exclude any expenditure not submitted with or that was incurred after the720 |
|---|
| 753 | | - | application required by subsection (h.1) (g) of this Code section was submitted;721 |
|---|
| 754 | | - | (F) Not be performed by an eligible accounting entity that is not determined to be722 |
|---|
| 755 | | - | independent as provided in the American Institute of Certified Public Accountants Code723 |
|---|
| 756 | | - | of Professional Conduct with respect to the production company or any of its related724 |
|---|
| 757 | | - | persons or related members as such terms are defined in Code Section 48-7-28.3 or as725 |
|---|
| 758 | | - | otherwise provided by the Department of Revenue; and726 |
|---|
| 759 | | - | (G) Be submitted to the department which shall review the audit, make adjustments as727 |
|---|
| 760 | | - | necessary, and issue a final certification to the production company.728 |
|---|
| 761 | | - | (5) The Department of Revenue shall:729 |
|---|
| 762 | | - | (A) Promulgate rules and regulations and implement this subsection;730 |
|---|
| 763 | | - | - 28 - 24 LC 50 0918S |
|---|
| 764 | | - | (B) Publish and regularly update a list of all eligible auditors that a production731 |
|---|
| 765 | | - | company may hire to conduct the audit required by this subsection;732 |
|---|
| 766 | | - | (C) Publish on its public website the application for certification of eligible auditors733 |
|---|
| 767 | | - | as well as all requirements related to certification and conducting an audit pursuant to734 |
|---|
| 768 | | - | this subsection;735 |
|---|
| 769 | | - | (D) Publish the registration fee required by division (3)(B)(v) of this subsection and736 |
|---|
| 770 | | - | any bond required pursuant to division (3)(B)(vi) of this subsection;737 |
|---|
| 771 | | - | (E) Determine whether a sampling method shall be used for the audits required by this738 |
|---|
| 772 | | - | subsection, the appropriate sample method and size, and if a sampling method is used,739 |
|---|
| 773 | | - | ensure that it accurately captures a truly representative sample of all ineligible740 |
|---|
| 774 | | - | expenditures across all submitted expenditures and projects the type, rate, and amount741 |
|---|
| 775 | | - | of ineligible expenditures across all submitted expenditures;742 |
|---|
| 776 | | - | (F) Perform the audit of expenditures when, due to confidentiality of information, the743 |
|---|
| 777 | | - | eligible auditor is unable to access necessary information that the department is able744 |
|---|
| 778 | | - | access;745 |
|---|
| 779 | | - | (G) Review each audit conducted by an eligible auditor, conduct the portions of the746 |
|---|
| 780 | | - | audit described in subparagraph (F) of this paragraph, perform additional auditing as747 |
|---|
| 781 | | - | necessary, adjust the value of the tax credit as necessary, finalize the audit, and issue748 |
|---|
| 782 | | - | the final certification of the tax credit to the taxpayer; and749 |
|---|
| 783 | | - | (H) For an audit that it conducts without an eligible auditor, complete the audit, adjust750 |
|---|
| 784 | | - | the value of the tax credit as necessary, and issue the final certification of the tax credit751 |
|---|
| 785 | | - | to the taxpayer.752 |
|---|
| 786 | | - | (6) The production company applying for a final certification of a tax credit pursuant to753 |
|---|
| 787 | | - | this subsection shall agree and be required to reimburse the department for all costs754 |
|---|
| 788 | | - | incurred by the performance of a related audit, or any portion thereof, including for755 |
|---|
| 789 | | - | review of an audit conducted by an eligible auditor, prior to the issuance of such final756 |
|---|
| 790 | | - | certification.757 |
|---|
| 791 | | - | - 29 - 24 LC 50 0918S |
|---|
| 792 | | - | (7) The cost of any such audit whether conducted in whole or in part by the department,758 |
|---|
| 793 | | - | an eligible auditor, or a combination of the two shall be borne by the production company759 |
|---|
| 794 | | - | and shall not be included as an expenditure claimed pursuant to this Code section.760 |
|---|
| 795 | | - | (8) This subsection shall not apply to qualified interactive entertainment production761 |
|---|
| 796 | | - | companies."762 |
|---|
| 797 | | - | SECTION 4.763 |
|---|
| 798 | | - | Said chapter is further amended by adding a new Code section to read as follows:764 |
|---|
| 799 | | - | "48-7-40.37.765 |
|---|
| 800 | | - | (a) This Code section shall be known and may be cited as the 'Georgia Interactive766 |
|---|
| 801 | | - | Entertainment Industry Investment Act.'767 |
|---|
| 802 | | - | (b) As used in this Code section, the term:768 |
|---|
| 803 | | - | (1) 'Affiliates' means those entities that are included in the qualified interactive769 |
|---|
| 804 | | - | entertainment production company's affiliated group as defined in Section 1504(a) of the770 |
|---|
| 805 | | - | Internal Revenue Code and all other entities that are directly or indirectly owned 50771 |
|---|
| 806 | | - | percent or more by members of the affiliated group.772 |
|---|
| 807 | | - | (2) 'Base investment' means the aggregate funds actually invested and expended by a773 |
|---|
| 808 | | - | qualified interactive entertainment production company as production expenditures774 |
|---|
| 809 | | - | incurred in this state that are directly used in a state certified production or productions.775 |
|---|
| 810 | | - | (3) 'Game platform' means the electronic delivery system used to launch or play an776 |
|---|
| 811 | | - | interactive game.777 |
|---|
| 812 | | - | (4) 'Game sequel' means an interactive game which builds upon the theme of a778 |
|---|
| 813 | | - | previously released interactive game, is distinguished by a new title, and features779 |
|---|
| 814 | | - | objectives or characters that are recognizably different from the original game.780 |
|---|
| 815 | | - | (5) 'Multimarket commercial distribution' means paid commercial distribution with781 |
|---|
| 816 | | - | media buys which extend to markets outside the State of Georgia.782 |
|---|
| 817 | | - | - 30 - 24 LC 50 0918S |
|---|
| 818 | | - | (6) 'Prereleased interactive game' means a new game, the offering of an existing game783 |
|---|
| 819 | | - | on a new game platform, or a game sequel that is in the developmental stages of784 |
|---|
| 820 | | - | production, which may be available to individuals for testing purposes but is not785 |
|---|
| 821 | | - | generally made available or distributed to consumers or to the general public.786 |
|---|
| 822 | | - | (7) 'Production expenditures' means:787 |
|---|
| 823 | | - | (A) Preproduction, production, and postproduction expenditures incurred in this state788 |
|---|
| 824 | | - | that are directly used in a qualified production activity, including, but not limited to, the789 |
|---|
| 825 | | - | following: set construction and operation; wardrobes, make-up, accessories, and related790 |
|---|
| 826 | | - | services; costs associated with photography and sound synchronization; expenditures791 |
|---|
| 827 | | - | excluding license fees incurred with Georgia companies for sound recordings and792 |
|---|
| 828 | | - | musical compositions; lighting and related services and materials; editing and related793 |
|---|
| 829 | | - | services; rental of facilities and equipment; leasing of vehicles; costs of food and794 |
|---|
| 830 | | - | lodging; digital or tape editing; sound mixing; computer graphics services; special795 |
|---|
| 831 | | - | effects services; animation services; total aggregate payroll; airfare, if purchased796 |
|---|
| 832 | | - | through a Georgia travel agency or travel company; insurance costs and bonding, if797 |
|---|
| 833 | | - | purchased through a Georgia insurance agency; and other direct costs of producing the798 |
|---|
| 834 | | - | project in accordance with generally accepted interactive entertainment industry799 |
|---|
| 835 | | - | practices;800 |
|---|
| 836 | | - | (B) Such term shall not include:801 |
|---|
| 837 | | - | (i) Postproduction expenditures for footage shot outside this state, marketing, story802 |
|---|
| 838 | | - | rights, or distribution;803 |
|---|
| 839 | | - | (ii) Any expenditure for work or services not conducted or rendered in this state. 804 |
|---|
| 840 | | - | Expenditures for services not performed at the filming site shall only qualify if the805 |
|---|
| 841 | | - | vendor is a Georgia vendor. Expenditures for services conducted or rendered both in806 |
|---|
| 842 | | - | and outside this state shall only qualify to the extent the service is conducted or807 |
|---|
| 843 | | - | rendered in Georgia;808 |
|---|
| 844 | | - | - 31 - 24 LC 50 0918S |
|---|
| 845 | | - | (iii) Expenditures for goods that were not purchased or rented or leased in this state809 |
|---|
| 846 | | - | from a Georgia vendor. Expenditures for goods shall only qualify to the extent such810 |
|---|
| 847 | | - | goods are used in this state. A vendor that acts as a conduit to enable purchases or811 |
|---|
| 848 | | - | rentals to qualify that would not otherwise qualify shall not be considered a Georgia812 |
|---|
| 849 | | - | vendor with respect to such purchases, rentals, or leases; or813 |
|---|
| 850 | | - | (iv) Any transaction subject to taxation imposed by Chapter 8 or 13 of this title for814 |
|---|
| 851 | | - | which taxes have not been demonstrably paid; and815 |
|---|
| 852 | | - | (C) Such term includes payments to a loan-out company by a qualified interactive816 |
|---|
| 853 | | - | entertainment production company that has met its withholding tax obligations as817 |
|---|
| 854 | | - | provided in this paragraph. The qualified interactive entertainment production818 |
|---|
| 855 | | - | company shall withhold Georgia income tax at the rate imposed by subsection (a) of819 |
|---|
| 856 | | - | Code Section 48-7-21 on all payments to loan-out companies for services performed820 |
|---|
| 857 | | - | in Georgia. Any amounts so withheld shall be deemed to have been withheld by the821 |
|---|
| 858 | | - | loan-out company on wages paid to its employees for services performed in Georgia822 |
|---|
| 859 | | - | pursuant to Article 5 of this chapter notwithstanding the exclusion provided in823 |
|---|
| 860 | | - | subparagraph (K) of paragraph (10) of Code Section 48-7-100. The amounts so824 |
|---|
| 861 | | - | withheld shall be allocated to the loan-out company's employees based on the payments825 |
|---|
| 862 | | - | made to the loan-out company's employees for services performed in Georgia. For826 |
|---|
| 863 | | - | purposes of this chapter, loan-out company nonresident employees performing services827 |
|---|
| 864 | | - | in Georgia shall be considered taxable nonresidents and the loan-out company shall be828 |
|---|
| 865 | | - | subject to income taxation in the taxable year in which the loan-out company's829 |
|---|
| 866 | | - | employees perform services in Georgia, notwithstanding any other provisions in this830 |
|---|
| 867 | | - | chapter. Such withholding liability shall be subject to penalties and interest in the same831 |
|---|
| 868 | | - | manner as the employee withholding taxes imposed by Article 5 of this chapter, and the832 |
|---|
| 869 | | - | commissioner shall provide by regulation the manner in which such liability shall be833 |
|---|
| 870 | | - | assessed and collected.834 |
|---|
| 871 | | - | - 32 - 24 LC 50 0918S |
|---|
| 872 | | - | (8) 'Qualified Georgia promotion' means a qualified promotion of this state approved by835 |
|---|
| 873 | | - | the Department of Economic Development consisting of a qualified interactive game836 |
|---|
| 874 | | - | which includes a 15 second long Georgia advertisement in units sold and embedded in837 |
|---|
| 875 | | - | online promotions.838 |
|---|
| 876 | | - | (9) 'Qualified interactive entertainment production company' means a company that:839 |
|---|
| 877 | | - | (A) Maintains a business location physically located in this state;840 |
|---|
| 878 | | - | (B) Has a total aggregate payroll of $250,000.00 or more for employees working841 |
|---|
| 879 | | - | within the state in the taxable year the qualified interactive entertainment production842 |
|---|
| 880 | | - | company claims the tax credits;843 |
|---|
| 881 | | - | (C) Has gross income of less than $100 million for the taxable year; and844 |
|---|
| 882 | | - | (D) Is primarily engaged in qualified production activities related to interactive845 |
|---|
| 883 | | - | entertainment.846 |
|---|
| 884 | | - | Such term shall not mean or include any form of business owned, affiliated, or controlled,847 |
|---|
| 885 | | - | in whole or in part, by any company or person which is in default on any tax obligation848 |
|---|
| 886 | | - | of the state or a loan made by the state or a loan guaranteed by the state.849 |
|---|
| 887 | | - | (10) 'Qualified production activities' means the production of new digital projects850 |
|---|
| 888 | | - | produced in this state and approved by the Department of Economic Development as851 |
|---|
| 889 | | - | state certified productions, including only the following: interactive entertainment or852 |
|---|
| 890 | | - | prereleased interactive games. Such term shall include projects created in this state, in853 |
|---|
| 891 | | - | whole or in part, animation, and music fixed on a delivery system which includes without854 |
|---|
| 892 | | - | limitation computer disc, laser disc, and any element of the digital domain and which is855 |
|---|
| 893 | | - | intended for multimarket commercial distribution via digital platforms designed for the856 |
|---|
| 894 | | - | distribution of interactive games. Such term shall not include any project that is not857 |
|---|
| 895 | | - | intended for multimarket commercial distribution or any project not originally created in858 |
|---|
| 896 | | - | this state.859 |
|---|
| 897 | | - | (11) 'Resident' means an individual as designated pursuant to paragraph (10) of Code860 |
|---|
| 898 | | - | Section 48-7-1.861 |
|---|
| 899 | | - | - 33 - 24 LC 50 0918S |
|---|
| 900 | | - | (12) 'State certified production' means a production engaged in qualified production862 |
|---|
| 901 | | - | activities which have been approved by the Department of Economic Development in863 |
|---|
| 902 | | - | accordance with regulations promulgated pursuant to this Code section. In the instance864 |
|---|
| 903 | | - | of a work for hire in which one qualified interactive entertainment production company865 |
|---|
| 904 | | - | hires another qualified interactive entertainment production company to produce a project866 |
|---|
| 905 | | - | or contribute elements of a project for pay, the hired company shall be considered a867 |
|---|
| 906 | | - | service provider for the hiring company, and the hiring company shall be entitled to the868 |
|---|
| 907 | | - | tax credit under this Code section.869 |
|---|
| 908 | | - | (13) 'Total aggregate payroll' means the total sum expended by a qualified interactive870 |
|---|
| 909 | | - | entertainment production company on salaries paid to employees working within this871 |
|---|
| 910 | | - | state in a state certified production or productions. For purposes of this paragraph:872 |
|---|
| 911 | | - | (A) With respect to a single employee, the portion of any salary which exceeds873 |
|---|
| 912 | | - | $500,000.00 for a single production shall not be included when calculating total874 |
|---|
| 913 | | - | aggregate payroll; and875 |
|---|
| 914 | | - | (B) All payments to a single employee and any legal entity in which the employee has876 |
|---|
| 915 | | - | any direct or indirect ownership interest shall be considered as having been paid to the877 |
|---|
| 916 | | - | employee and shall be aggregated regardless of the means of payment or distribution.878 |
|---|
| 917 | | - | (c) For any qualified interactive entertainment production company and its affiliates that879 |
|---|
| 918 | | - | invest in a state certified production and whose average annual total production880 |
|---|
| 919 | | - | expenditures in this state did not exceed $30 million for 2002, 2003, and 2004, there shall881 |
|---|
| 920 | | - | be allowed an income tax credit against the tax imposed under this article. The tax credit882 |
|---|
| 921 | | - | under this subsection shall be allowed if the base investment in this state equals or exceeds883 |
|---|
| 922 | | - | $250,000.00, and shall be calculated as follows:884 |
|---|
| 923 | | - | (1) The qualified interactive entertainment production company shall be allowed a tax885 |
|---|
| 924 | | - | credit equal to 20 percent of the base investment in this state; and886 |
|---|
| 925 | | - | (2)(A) The qualified interactive entertainment production company shall be allowed887 |
|---|
| 926 | | - | an additional tax credit equal to 10 percent of such base investment if the qualified888 |
|---|
| 927 | | - | - 34 - 24 LC 50 0918S |
|---|
| 928 | | - | production activity includes a qualified Georgia promotion. Such additional tax credit889 |
|---|
| 929 | | - | shall be allowed for any qualified production that includes a qualified Georgia890 |
|---|
| 930 | | - | promotion upon its release to the general public. In lieu of the inclusion of the Georgia891 |
|---|
| 931 | | - | promotional logo, the qualified interactive entertainment production company may892 |
|---|
| 932 | | - | offer alternative marketing opportunities to be evaluated by the Department of893 |
|---|
| 933 | | - | Economic Development to ensure that they offer equal or greater promotional value to894 |
|---|
| 934 | | - | the State of Georgia. The Department of Economic Development shall electronically895 |
|---|
| 935 | | - | certify to the Department of Revenue when the requirements of this paragraph and896 |
|---|
| 936 | | - | paragraph (2) of subsection (d) of this Code section have been met.897 |
|---|
| 937 | | - | (B) The Department of Economic Development shall prepare an annual report detailing898 |
|---|
| 938 | | - | the marketing opportunities it has approved under the provisions of subparagraph (A)899 |
|---|
| 939 | | - | of this paragraph. The report shall include, but not be limited to:900 |
|---|
| 940 | | - | (i) The goals and strategy behind each marketing opportunity approved pursuant to901 |
|---|
| 941 | | - | the provisions of subparagraph (A) of this paragraph;902 |
|---|
| 942 | | - | (ii) The names of all qualified interactive entertainment production companies903 |
|---|
| 943 | | - | approved by the Department of Economic Development to provide alternative904 |
|---|
| 944 | | - | marketing opportunities;905 |
|---|
| 945 | | - | (iii) The estimated value to the state of each approved alternative marketing906 |
|---|
| 946 | | - | opportunity compared to the estimated value of the Georgia promotional logo; and907 |
|---|
| 947 | | - | (iv) The names of all qualified interactive entertainment production companies that908 |
|---|
| 948 | | - | chose to include the Georgia promotional logo in its final production instead of909 |
|---|
| 949 | | - | offering the state an alternative marketing proposal.910 |
|---|
| 950 | | - | The report required under this subparagraph shall be completed no later than January 1911 |
|---|
| 951 | | - | of each year and presented to each member of the House Committee on Ways and912 |
|---|
| 952 | | - | Means, the Senate Finance Committee, the Senate Economic Development and913 |
|---|
| 953 | | - | Tourism Committee, the House Committee on Economic Development and Tourism,914 |
|---|
| 954 | | - | and the Governor.915 |
|---|
| 955 | | - | - 35 - 24 LC 50 0918S |
|---|
| 956 | | - | (d) For any qualified interactive entertainment production company and its affiliates that916 |
|---|
| 957 | | - | invest in a state certified production and whose average annual total production917 |
|---|
| 958 | | - | expenditures in this state exceeded $30 million for 2002, 2003, and 2004, there shall be918 |
|---|
| 959 | | - | allowed an income tax credit against the tax imposed under this article. For purposes of919 |
|---|
| 960 | | - | this subsection, the excess base investment in this state is computed by taking the current920 |
|---|
| 961 | | - | year production expenditures in a state certified production and subtracting the average of921 |
|---|
| 962 | | - | the annual total production expenditures for 2002, 2003, and 2004. The tax credit shall be922 |
|---|
| 963 | | - | calculated as follows:923 |
|---|
| 964 | | - | (1) If the excess base investment in this state equals or exceeds $250,000.00, the924 |
|---|
| 965 | | - | qualified interactive entertainment production company and its affiliates shall be allowed925 |
|---|
| 966 | | - | a tax credit of 20 percent of such excess base investment; and926 |
|---|
| 967 | | - | (2)(A) The qualified interactive entertainment production company and its affiliates927 |
|---|
| 968 | | - | shall be allowed an additional tax credit equal to 10 percent of the excess base928 |
|---|
| 969 | | - | investment if the qualified production activities include a qualified Georgia promotion. 929 |
|---|
| 970 | | - | Such additional tax credit shall be allowed for any qualified production that includes930 |
|---|
| 971 | | - | a qualified Georgia promotion upon its release to the general public. In lieu of the931 |
|---|
| 972 | | - | inclusion of the Georgia promotional logo, the qualified interactive entertainment932 |
|---|
| 973 | | - | production company may offer marketing opportunities to be evaluated by the933 |
|---|
| 974 | | - | Department of Economic Development to ensure that they offer equal or greater934 |
|---|
| 975 | | - | promotional value to the State of Georgia.935 |
|---|
| 976 | | - | (B) The Department of Economic Development shall prepare an annual report detailing936 |
|---|
| 977 | | - | the marketing opportunities it has approved under the provisions of subparagraph (A)937 |
|---|
| 978 | | - | of this paragraph. The report shall include, but not be limited to:938 |
|---|
| 979 | | - | (i) The goals and strategy behind each marketing opportunity approved pursuant to939 |
|---|
| 980 | | - | the provisions of subparagraph (A) of this paragraph;940 |
|---|
| 981 | | - | - 36 - 24 LC 50 0918S |
|---|
| 982 | | - | (ii) The names of all qualified interactive entertainment production companies941 |
|---|
| 983 | | - | approved by the Department of Economic Development to provide alternative942 |
|---|
| 984 | | - | marketing opportunities;943 |
|---|
| 985 | | - | (iii) The estimated value to the state of each approved alternative marketing944 |
|---|
| 986 | | - | opportunity compared to the estimated value of the Georgia promotional logo; and945 |
|---|
| 987 | | - | (iv) The names of all qualified interactive entertainment production companies that946 |
|---|
| 988 | | - | chose to include the Georgia promotional logo in its final production instead of947 |
|---|
| 989 | | - | offering the state an alternative marketing proposal.948 |
|---|
| 990 | | - | The report required under this subparagraph shall be completed no later than January949 |
|---|
| 991 | | - | 1 of each year and presented to each member of the House Committee on Ways and950 |
|---|
| 992 | | - | Means, the Senate Finance Committee, the Senate Economic Development and951 |
|---|
| 993 | | - | Tourism Committee, the House Committee on Economic Development and Tourism,952 |
|---|
| 994 | | - | and the Governor.953 |
|---|
| 995 | | - | (e)(1) In no event shall the aggregate amount of tax credits allowed under this Code954 |
|---|
| 996 | | - | section for qualified interactive entertainment production companies and affiliates exceed955 |
|---|
| 997 | | - | $12.5 million for each taxable year.956 |
|---|
| 998 | | - | (2) Qualified interactive entertainment production companies are eligible for tax credits957 |
|---|
| 999 | | - | for prereleased interactive game production; provided, however, that such credits shall958 |
|---|
| 1000 | | - | not be available for a period which exceeds three years.959 |
|---|
| 1001 | | - | (3) The maximum allowable credit claimed for any qualified interactive entertainment960 |
|---|
| 1002 | | - | production company and its affiliates shall not exceed $1.5 million in any single year.961 |
|---|
| 1003 | | - | (4) Qualified interactive entertainment production companies seeking to claim a tax962 |
|---|
| 1004 | | - | credit under the provisions of this Code section shall submit an application to the963 |
|---|
| 1005 | | - | commissioner for preapproval of such tax credit. The commissioner shall preapprove the964 |
|---|
| 1006 | | - | tax credits based on the order in which properly completed applications were submitted. 965 |
|---|
| 1007 | | - | In the event that two or more applications were submitted on the same day and the966 |
|---|
| 1008 | | - | - 37 - 24 LC 50 0918S |
|---|
| 1009 | | - | amount of funds available will not be sufficient to fully fund the tax credits requested, the967 |
|---|
| 1010 | | - | commissioner shall prorate the available funds between or among the applicants.968 |
|---|
| 1011 | | - | (5) No qualified interactive entertainment production company shall be allowed to claim969 |
|---|
| 1012 | | - | an amount of tax credits under this Code section for any single year in excess of its total970 |
|---|
| 1013 | | - | aggregate payroll expended to employees working within this state for the calendar year971 |
|---|
| 1014 | | - | that the qualified interactive entertainment production company claims the tax credits. 972 |
|---|
| 1015 | | - | Any amount in excess of such limit shall not be eligible for carry forward to the973 |
|---|
| 1016 | | - | succeeding years' tax liability, nor shall such excess amount be eligible for use against974 |
|---|
| 1017 | | - | the qualified interactive entertainment production company's quarterly or monthly975 |
|---|
| 1018 | | - | payment under Code Section 48-7-103, nor shall such excess amount be assigned, sold,976 |
|---|
| 1019 | | - | or transferred to any other taxpayer.977 |
|---|
| 1020 | | - | (6) Before the Department of Economic Development issues its approval to the qualified978 |
|---|
| 1021 | | - | interactive entertainment production company for the qualified production activities, the979 |
|---|
| 1022 | | - | qualified interactive entertainment production company shall certify to the department980 |
|---|
| 1023 | | - | that:981 |
|---|
| 1024 | | - | (A) The qualified interactive entertainment production company maintains a business982 |
|---|
| 1025 | | - | location physically located in this state; and983 |
|---|
| 1026 | | - | (B) The qualified interactive entertainment production company had expended a total984 |
|---|
| 1027 | | - | aggregate payroll of $250,000.00 or more for employees working within this state985 |
|---|
| 1028 | | - | during the taxable year of the qualified interactive entertainment production company.986 |
|---|
| 1029 | | - | The department shall issue a certification that the qualified interactive entertainment987 |
|---|
| 1030 | | - | production company meets the requirements of this paragraph. The qualified interactive988 |
|---|
| 1031 | | - | entertainment production company shall provide such certification to the Department of989 |
|---|
| 1032 | | - | Economic Development. The Department of Economic Development shall not issue its990 |
|---|
| 1033 | | - | approval until it receives such certification.991 |
|---|
| 1034 | | - | (7)(A) The qualified interactive entertainment production company shall report to the992 |
|---|
| 1035 | | - | Department of Revenue on its Georgia income tax return the monthly average number993 |
|---|
| 1036 | | - | - 38 - 24 LC 50 0918S |
|---|
| 1037 | | - | of full-time employees subject to Georgia income tax withholding for the taxable year994 |
|---|
| 1038 | | - | as provided in subparagraph (B) of this paragraph. As used in this paragraph, the term995 |
|---|
| 1039 | | - | 'full-time employee' means a person who performs a job that requires a minimum of 35996 |
|---|
| 1040 | | - | hours per week and receives compensation at or above the average wage earned in the997 |
|---|
| 1041 | | - | county with the lowest average wage earned in this state as reported in the most998 |
|---|
| 1042 | | - | recently available annual issue of the Georgia Employment and Wages Averages999 |
|---|
| 1043 | | - | Report of the Department of Labor.1000 |
|---|
| 1044 | | - | (B) The qualified interactive entertainment production company shall report such1001 |
|---|
| 1045 | | - | number for each respective taxable year.1002 |
|---|
| 1046 | | - | (C) Notwithstanding Code Sections 48-2-15, 48-7-60, and 48-7-61, for such taxable1003 |
|---|
| 1047 | | - | years, the commissioner shall report yearly to the House Committee on Ways and1004 |
|---|
| 1048 | | - | Means and the Senate Finance Committee. Such report shall include the name, tax year1005 |
|---|
| 1049 | | - | beginning, and monthly average number of full-time employees for each qualified1006 |
|---|
| 1050 | | - | interactive entertainment production company and shall be submitted by June 30 of1007 |
|---|
| 1051 | | - | each year.1008 |
|---|
| 1052 | | - | (f)(1) If the amount of tax credits allowed under this Code section exceeds the qualified1009 |
|---|
| 1053 | | - | interactive entertainment production company's liability for taxes owed under this article1010 |
|---|
| 1054 | | - | in a taxable year, the excess may be taken as a credit against such qualified interactive1011 |
|---|
| 1055 | | - | entertainment production company's quarterly or monthly payment under Code Section1012 |
|---|
| 1056 | | - | 48-7-103. Each employee whose employer receives credit against such qualified1013 |
|---|
| 1057 | | - | interactive entertainment production company's quarterly or monthly payment under1014 |
|---|
| 1058 | | - | Code Section 48-7-103 shall receive credit against his or her income tax liability under1015 |
|---|
| 1059 | | - | Code Section 48-7-20 for the corresponding taxable year for the full amount which would1016 |
|---|
| 1060 | | - | be credited against such liability prior to the application of the credit provided for in this1017 |
|---|
| 1061 | | - | subsection. Credits against quarterly or monthly payments under Code Section 48-7-1031018 |
|---|
| 1062 | | - | and credits against liability under Code Section 48-7-20 established by this subsection1019 |
|---|
| 1063 | | - | shall not constitute income to the qualified interactive entertainment production company.1020 |
|---|
| 1064 | | - | - 39 - 24 LC 50 0918S |
|---|
| 1065 | | - | (2) If a qualified interactive entertainment production company and its affiliates claim1021 |
|---|
| 1066 | | - | the credit authorized under Code Section 48-7-40, 48-7-40.1, 48-7-40.17, or 48-7-40.18,1022 |
|---|
| 1067 | | - | then the qualified interactive entertainment production company and its affiliates shall1023 |
|---|
| 1068 | | - | only be allowed to claim the credit authorized under this Code section to the extent that1024 |
|---|
| 1069 | | - | the Georgia resident employees included in the credit calculation authorized under this1025 |
|---|
| 1070 | | - | Code section and taken by the qualified interactive entertainment production company1026 |
|---|
| 1071 | | - | and its affiliates on such tax return under this Code section have been permanently1027 |
|---|
| 1072 | | - | excluded from the credit authorized under Code Section 48-7-40, 48-7-40.1, 48-7-40.17,1028 |
|---|
| 1073 | | - | or 48-7-40.18.1029 |
|---|
| 1074 | | - | (g) Any tax credits with respect to a state certified production earned by a qualified1030 |
|---|
| 1075 | | - | interactive entertainment production company and previously claimed but not used by such1031 |
|---|
| 1076 | | - | qualified interactive entertainment production company against its income tax may be1032 |
|---|
| 1077 | | - | transferred or sold in whole or in part by such qualified interactive entertainment1033 |
|---|
| 1078 | | - | production company to another Georgia taxpayer, subject to the following conditions:1034 |
|---|
| 1079 | | - | (1) Such qualified interactive entertainment production company may make only a single1035 |
|---|
| 1080 | | - | transfer or sale of tax credits earned in a taxable year; provided, however, that the transfer1036 |
|---|
| 1081 | | - | or sale may involve one or more transferees;1037 |
|---|
| 1082 | | - | (2) Such qualified interactive entertainment production company shall submit to the1038 |
|---|
| 1083 | | - | Department of Economic Development and to the Department of Revenue a written1039 |
|---|
| 1084 | | - | notification of any transfer or sale of tax credits within 30 days after the transfer or sale1040 |
|---|
| 1085 | | - | of such tax credits. The notification shall include such qualified interactive entertainment1041 |
|---|
| 1086 | | - | production company's tax credit balance prior to transfer, the credit certificate number,1042 |
|---|
| 1087 | | - | the remaining balance after transfer, all tax identification numbers for each transferee, the1043 |
|---|
| 1088 | | - | date of transfer, the amount transferred, and any other information required by the1044 |
|---|
| 1089 | | - | Department of Economic Development or the Department of Revenue;1045 |
|---|
| 1090 | | - | - 40 - 24 LC 50 0918S |
|---|
| 1091 | | - | (3) Failure to comply with this subsection shall result in the disallowance of the tax1046 |
|---|
| 1092 | | - | credit until the qualified interactive entertainment production company is in full1047 |
|---|
| 1093 | | - | compliance;1048 |
|---|
| 1094 | | - | (4) The transfer or sale of this tax credit does not extend the time in which such tax credit1049 |
|---|
| 1095 | | - | can be used. The carry-forward period for a tax credit that is transferred or sold shall1050 |
|---|
| 1096 | | - | begin on the date on which the tax credit was originally earned;1051 |
|---|
| 1097 | | - | (5) A transferee shall have only such rights to claim and use the tax credit that were1052 |
|---|
| 1098 | | - | available to such qualified interactive entertainment production company at the time of1053 |
|---|
| 1099 | | - | the transfer, except for the use of the credit in paragraph (1) of subsection (f) of this Code1054 |
|---|
| 1100 | | - | section. To the extent that such qualified interactive entertainment production company1055 |
|---|
| 1101 | | - | did not have rights to claim or use the tax credit at the time of the transfer, the1056 |
|---|
| 1102 | | - | Department of Revenue shall recapture the tax credit from the transferor. The transferee's1057 |
|---|
| 1103 | | - | recourse is against such qualified interactive entertainment production company; and1058 |
|---|
| 1104 | | - | (6) The transferee shall acquire the tax credits in this Code section for a minimum of 601059 |
|---|
| 1105 | | - | percent of the amount of the tax credits so transferred.1060 |
|---|
| 1106 | | - | (h) The credit granted under this Code section shall be subject to the following conditions1061 |
|---|
| 1107 | | - | and limitations:1062 |
|---|
| 1108 | | - | (1) The credit may be taken beginning with the taxable year in which the qualified1063 |
|---|
| 1109 | | - | interactive entertainment production company has met the investment requirement. For1064 |
|---|
| 1110 | | - | each year in which such qualified interactive entertainment production company either1065 |
|---|
| 1111 | | - | claims or transfers the credit, the qualified interactive entertainment production company1066 |
|---|
| 1112 | | - | shall attach a schedule to the qualified interactive entertainment production company's1067 |
|---|
| 1113 | | - | Georgia income tax return which shall set forth the following information, as a minimum:1068 |
|---|
| 1114 | | - | (A) A description of the qualified production activities, along with the certification1069 |
|---|
| 1115 | | - | from the Department of Economic Development;1070 |
|---|
| 1116 | | - | (B) A detailed listing of the employee names, social security numbers, and Georgia1071 |
|---|
| 1117 | | - | wages when salaries are included in the base investment;1072 |
|---|
| 1118 | | - | - 41 - 24 LC 50 0918S |
|---|
| 1119 | | - | (C) The amount of tax credit claimed for the taxable year;1073 |
|---|
| 1120 | | - | (D) Any tax credit previously taken by the qualified interactive entertainment1074 |
|---|
| 1121 | | - | production company against Georgia income tax liabilities or the qualified interactive1075 |
|---|
| 1122 | | - | entertainment production company's quarterly or monthly payments under Code Section1076 |
|---|
| 1123 | | - | 48-7-103;1077 |
|---|
| 1124 | | - | (E) The amount of tax credit carried forward from prior years;1078 |
|---|
| 1125 | | - | (F) The amount of tax credit utilized by the qualified interactive entertainment1079 |
|---|
| 1126 | | - | production company in the current taxable year; and1080 |
|---|
| 1127 | | - | (G) The amount of tax credit to be carried forward to subsequent tax years;1081 |
|---|
| 1128 | | - | (2) In the initial year in which a qualified interactive entertainment production company1082 |
|---|
| 1129 | | - | claims the credit granted in this Code section, the qualified interactive entertainment1083 |
|---|
| 1130 | | - | production company shall include in the description of the qualified production activities1084 |
|---|
| 1131 | | - | required by subparagraph (A) of paragraph (1) of this subsection information which1085 |
|---|
| 1132 | | - | demonstrates that the activities included in the base investment or excess base investment1086 |
|---|
| 1133 | | - | equal or exceed $250,000.00; and1087 |
|---|
| 1134 | | - | (3) In no event shall the amount of the tax credit under this Code section for a taxable1088 |
|---|
| 1135 | | - | year exceed the qualified interactive entertainment production company's income tax1089 |
|---|
| 1136 | | - | liability. Any unused credit amount shall be allowed to be carried forward for five years1090 |
|---|
| 1137 | | - | from the close of the taxable year in which the investment occurred. No such credit shall1091 |
|---|
| 1138 | | - | be allowed the qualified interactive entertainment production company against prior1092 |
|---|
| 1139 | | - | years' tax liability.1093 |
|---|
| 1140 | | - | (i)(1) The Department of Economic Development shall:1094 |
|---|
| 1141 | | - | (A) Certify each production that qualifies for the tax credits authorized under this Code1095 |
|---|
| 1142 | | - | section;1096 |
|---|
| 1143 | | - | (B) Submit such certifications to the commissioner; and1097 |
|---|
| 1144 | | - | (C) Promulgate rules and regulations as are necessary to implement this subsection.1098 |
|---|
| 1145 | | - | - 42 - 24 LC 50 0918S |
|---|
| 1146 | | - | (2) The Department of Economic Development may charge reasonable fees associated1099 |
|---|
| 1147 | | - | with the certification process established pursuant to this paragraph.1100 |
|---|
| 1148 | | - | (j) The commissioner shall promulgate such rules and regulations as are necessary to1101 |
|---|
| 1149 | | - | implement and administer this Code section.1102 |
|---|
| 1150 | | - | (k) No qualified interactive entertainment production company shall be allowed a credit1103 |
|---|
| 1151 | | - | under this Code section and Code Section 48-7-40.26 in the same year."1104 |
|---|
| 1152 | | - | SECTION 5.1105 |
|---|
| 1153 | | - | (a) This Act shall become effective on January 1, 2026, and shall be applicable to taxable1106 |
|---|
| 1154 | | - | years beginning on or after such date.1107 |
|---|
| 1155 | | - | (b) Section 3 of this Act shall apply to projects certified by the Department of Economic1108 |
|---|
| 1156 | | - | Development on or after January 1, 2026.1109 |
|---|
| 1157 | | - | SECTION 6.1110 |
|---|
| 1158 | | - | All laws and parts of laws in conflict with this Act are repealed.1111 |
|---|
| 1159 | | - | - 43 - |
|---|
| 17 | + | To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to |
|---|
| 18 | + | 1 |
|---|
| 19 | + | income taxes, so as to separate into a new Code section provisions related to tax credits for2 |
|---|
| 20 | + | qualified interactive entertainment production companies; to provide for base investment3 |
|---|
| 21 | + | requirements for a qualified production company to qualify for a credit; to provide for a4 |
|---|
| 22 | + | maximum amount of credits that may be transferred each year; to provide for the5 |
|---|
| 23 | + | implementation of such maximum; to provide for conditions related to transferability of6 |
|---|
| 24 | + | credits; to provide for the circumstances under which a company qualifies for an additional7 |
|---|
| 25 | + | credit; to authorize certain fees; to require companies to pay court costs if the denial of8 |
|---|
| 26 | + | certification is upheld by a court on appeal; to provide for an application requirement; to9 |
|---|
| 27 | + | remove outdated and unnecessary language; to provide a short title; to provide for10 |
|---|
| 28 | + | definitions; to provide for related matters; to provide for an effective date and applicability;11 |
|---|
| 29 | + | to repeal conflicting laws; and for other purposes.12 |
|---|
| 30 | + | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:13 |
|---|
| 31 | + | H. B. 1180 (SUB) |
|---|
| 32 | + | - 1 - 24 LC 50 0785S |
|---|
| 33 | + | SECTION 1. |
|---|
| 34 | + | 14 |
|---|
| 35 | + | Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,15 |
|---|
| 36 | + | is amended by revising Code Section 48-7-40.26, relating to income tax credits for film,16 |
|---|
| 37 | + | gaming, video, or digital production, as follows:17 |
|---|
| 38 | + | "48-7-40.26.18 |
|---|
| 39 | + | (a) This Code section shall be known and may be cited as the 'Georgia Entertainment19 |
|---|
| 40 | + | Industry Investment Act.'20 |
|---|
| 41 | + | (b) As used in this Code section, the term:21 |
|---|
| 42 | + | (1) 'Affiliates' means those entities that are included in the production company's or |
|---|
| 43 | + | 22 |
|---|
| 44 | + | qualified interactive entertainment production company's affiliated group as defined in23 |
|---|
| 45 | + | Section 1504(a) of the Internal Revenue Code and all other entities that are directly or24 |
|---|
| 46 | + | indirectly owned 50 percent or more by members of the affiliated group.25 |
|---|
| 47 | + | (2) 'Base investment' means the aggregate funds actually invested and expended by a26 |
|---|
| 48 | + | production company or qualified interactive entertainment production company as27 |
|---|
| 49 | + | production expenditures incurred in this state that are directly used in a state certified28 |
|---|
| 50 | + | production or productions.29 |
|---|
| 51 | + | (3) 'Game platform' means the electronic delivery system used to launch or play an30 |
|---|
| 52 | + | interactive game.31 |
|---|
| 53 | + | (4) 'Game sequel' means an interactive game which builds upon the theme of a32 |
|---|
| 54 | + | previously released interactive game, is distinguished by a new title, and features33 |
|---|
| 55 | + | objectives or characters that are recognizably different from the original game.34 |
|---|
| 56 | + | (5)(3) 'Multimarket commercial distribution' means paid commercial distribution with35 |
|---|
| 57 | + | media buys which extend to markets outside the State of Georgia.36 |
|---|
| 58 | + | (6) 'Prereleased interactive game' means a new game, the offering of an existing game37 |
|---|
| 59 | + | on a new game platform, or a game sequel that is in the developmental stages of38 |
|---|
| 60 | + | production, which may be available to individuals for testing purposes but is not39 |
|---|
| 61 | + | generally made available or distributed to consumers or to the general public.40 |
|---|
| 62 | + | H. B. 1180 (SUB) |
|---|
| 63 | + | - 2 - 24 LC 50 0785S |
|---|
| 64 | + | (7)(4) 'Production company' means a company, other than a qualified interactive41 |
|---|
| 65 | + | entertainment production company, primarily engaged in qualified production activities42 |
|---|
| 66 | + | which have been approved by the Department of Economic Development. This Such43 |
|---|
| 67 | + | term shall not mean or include any form of business owned, affiliated, or controlled, in44 |
|---|
| 68 | + | whole or in part, by any company or person which is in default on any tax obligation of45 |
|---|
| 69 | + | the state, or a loan made by the state or a loan guaranteed by the state.46 |
|---|
| 70 | + | (8)(5) 'Production expenditures' means:47 |
|---|
| 71 | + | (A) Preproduction, production, and postproduction expenditures incurred in this state48 |
|---|
| 72 | + | that are directly used in a qualified production activity, including, but not limited to, the49 |
|---|
| 73 | + | following: set construction and operation; wardrobes, make-up, accessories, and related50 |
|---|
| 74 | + | services; costs associated with photography and sound synchronization; expenditures51 |
|---|
| 75 | + | excluding license fees incurred with Georgia companies for sound recordings and52 |
|---|
| 76 | + | musical compositions; sound recording projects used in feature films, series, pilots, or53 |
|---|
| 77 | + | movies; lighting and related services and materials; editing and related services; rental54 |
|---|
| 78 | + | of facilities and equipment; leasing of vehicles; costs of food and lodging; digital or55 |
|---|
| 79 | + | tape editing; film processing; transfers of film to tape or digital format; sound mixing;56 |
|---|
| 80 | + | computer graphics services; special effects services; animation services; total aggregate57 |
|---|
| 81 | + | payroll; airfare, if purchased through a Georgia travel agency or travel company;58 |
|---|
| 82 | + | insurance costs and bonding, if purchased through a Georgia insurance agency; and59 |
|---|
| 83 | + | other direct costs of producing the project in accordance with generally accepted60 |
|---|
| 84 | + | entertainment industry practices.61 |
|---|
| 85 | + | (B) This Such term shall not include:62 |
|---|
| 86 | + | (i) Postproduction expenditures for footage shot outside the State of Georgia this63 |
|---|
| 87 | + | state, marketing, story rights, or distribution;64 |
|---|
| 88 | + | (ii) Any expenditure for work or services not conducted or rendered in Georgia this65 |
|---|
| 89 | + | state. Expenditures for services not performed at the filming site shall only qualify66 |
|---|
| 90 | + | if the vendor is a Georgia vendor. Expenditures for services conducted or rendered67 |
|---|
| 91 | + | H. B. 1180 (SUB) |
|---|
| 92 | + | - 3 - 24 LC 50 0785S |
|---|
| 93 | + | both in Georgia and outside Georgia this state shall only qualify to the extent the68 |
|---|
| 94 | + | service is conducted or rendered in Georgia;69 |
|---|
| 95 | + | (iii) Expenditures for goods that were not purchased or rented or leased in this state70 |
|---|
| 96 | + | from a Georgia vendor. Expenditures for goods shall only qualify to the extent such71 |
|---|
| 97 | + | goods are used in this state. A vendor that acts as a conduit to enable purchases or72 |
|---|
| 98 | + | rentals to qualify that would not otherwise qualify shall not be considered a Georgia73 |
|---|
| 99 | + | vendor with respect to such purchases, rentals, or leases; or74 |
|---|
| 100 | + | (iv) Any transaction subject to taxation imposed by Chapter 8 or 13 of this title for75 |
|---|
| 101 | + | which taxes have not been demonstrably paid.76 |
|---|
| 102 | + | (C) This Such term includes payments to a loan-out company by a production company77 |
|---|
| 103 | + | or qualified interactive entertainment production company that has met its withholding78 |
|---|
| 104 | + | tax obligations as set out below. The production company or qualified interactive79 |
|---|
| 105 | + | entertainment production company shall withhold Georgia income tax at the rate80 |
|---|
| 106 | + | imposed by subsection (a) of Code Section 48-7-21 on all payments to loan-out81 |
|---|
| 107 | + | companies for services performed in Georgia. Any amounts so withheld shall be82 |
|---|
| 108 | + | deemed to have been withheld by the loan-out company on wages paid to its employees83 |
|---|
| 109 | + | for services performed in Georgia pursuant to Article 5 of this chapter notwithstanding84 |
|---|
| 110 | + | the exclusion provided in subparagraph (K) of paragraph (10) of Code Section85 |
|---|
| 111 | + | 48-7-100. The amounts so withheld shall be allocated to the loan-out company's86 |
|---|
| 112 | + | employees based on the payments made to the loan-out company's employees for87 |
|---|
| 113 | + | services performed in Georgia. For purposes of this chapter, loan-out company88 |
|---|
| 114 | + | nonresident employees performing services in Georgia shall be considered taxable89 |
|---|
| 115 | + | nonresidents and the loan-out company shall be subject to income taxation in the90 |
|---|
| 116 | + | taxable year in which the loan-out company's employees perform services in Georgia,91 |
|---|
| 117 | + | notwithstanding any other provisions in this chapter. Such withholding liability shall92 |
|---|
| 118 | + | be subject to penalties and interest in the same manner as the employee withholding93 |
|---|
| 119 | + | H. B. 1180 (SUB) |
|---|
| 120 | + | - 4 - 24 LC 50 0785S |
|---|
| 121 | + | taxes imposed by Article 5 of this chapter and the commissioner shall provide by |
|---|
| 122 | + | 94 |
|---|
| 123 | + | regulation the manner in which such liability shall be assessed and collected.95 |
|---|
| 124 | + | (D) Production expenditures by a production company shall be subject to any96 |
|---|
| 125 | + | limitations or reductions imposed by subsection (l) |
|---|
| 126 | + | (k) of this Code section.97 |
|---|
| 127 | + | (9)(6) 'Qualified Georgia promotion' means a qualified promotion of this state approved98 |
|---|
| 128 | + | by the Department of Economic Development consisting of a:99 |
|---|
| 129 | + | (A) Qualified movie production which includes a five-second long static or animated100 |
|---|
| 130 | + | logo that promotes Georgia in the end credits before the below-the-line crew crawl for101 |
|---|
| 131 | + | the life of the project and which includes a link to Georgia on the project's web page;102 |
|---|
| 132 | + | (B) Qualified TV production which includes an embedded five-second long Georgia103 |
|---|
| 133 | + | promotion during each broadcast worldwide for the life of the project and which104 |
|---|
| 134 | + | includes a link to Georgia on the project's web page; or105 |
|---|
| 135 | + | (C) Qualified music video which includes the Georgia logo at the end of each video106 |
|---|
| 136 | + | and within online promotions; or107 |
|---|
| 137 | + | (D) Qualified interactive game which includes a 15 second long Georgia advertisement108 |
|---|
| 138 | + | in units sold and embedded in online promotions.109 |
|---|
| 139 | + | (10) 'Qualified interactive entertainment production company' means a company that:110 |
|---|
| 140 | + | (A) Maintains a business location physically located in Georgia;111 |
|---|
| 141 | + | (B)(i) Through December 31, 2017, in the calendar year directly preceding the start112 |
|---|
| 142 | + | of the taxable year of the qualified interactive entertainment production company, had113 |
|---|
| 143 | + | a total aggregate payroll of $500,000.00 or more for employees working within the114 |
|---|
| 144 | + | state; or115 |
|---|
| 145 | + | (ii) On or after January 1, 2018, had a total aggregate payroll of $250,000.00 or more116 |
|---|
| 146 | + | for employees working within the state in the taxable year the qualified interactive117 |
|---|
| 147 | + | entertainment production company claims the tax credits;118 |
|---|
| 148 | + | (C) Has gross income less than $100 million for the taxable year; and119 |
|---|
| 149 | + | H. B. 1180 (SUB) |
|---|
| 150 | + | - 5 - 24 LC 50 0785S |
|---|
| 151 | + | (D) Is primarily engaged in qualified production activities related to interactive120 |
|---|
| 152 | + | entertainment which have been approved by the Department of Economic121 |
|---|
| 153 | + | Development.122 |
|---|
| 154 | + | This term shall not mean or include any form of business owned, affiliated, or controlled,123 |
|---|
| 155 | + | in whole or in part, by any company or person which is in default on any tax obligation124 |
|---|
| 156 | + | of the state, or a loan made by the state or a loan guaranteed by the state.125 |
|---|
| 157 | + | (11)(7) 'Qualified production activities' means the production of new film, video, or126 |
|---|
| 158 | + | digital projects produced in this state and approved by the Department of Economic127 |
|---|
| 159 | + | Development as state certified productions, including only the following: feature films,128 |
|---|
| 160 | + | series, pilots, movies for television, televised commercial advertisements, and music129 |
|---|
| 161 | + | videos, interactive entertainment, or prereleased interactive games. Such activities term130 |
|---|
| 162 | + | shall include projects recorded in this state, in whole or in part, in either short or long131 |
|---|
| 163 | + | form, animation and music, fixed on a delivery system which includes without limitation132 |
|---|
| 164 | + | film, videotape, computer disc, laser disc, and any element of the digital domain, from133 |
|---|
| 165 | + | which the program is viewed or reproduced, and which is intended for multimarket134 |
|---|
| 166 | + | commercial distribution via theaters, video on demand, direct to DVD, digital platforms135 |
|---|
| 167 | + | designed for the distribution of interactive games, licensing for exhibition by individual136 |
|---|
| 168 | + | television stations, groups of stations, networks, advertiser supported sites, cable137 |
|---|
| 169 | + | television stations, or public broadcasting stations. Such term shall not include the138 |
|---|
| 170 | + | coverage of news or athletic events, local interest programming, instructional videos,139 |
|---|
| 171 | + | corporate videos, any project that is not intended for multimarket commercial140 |
|---|
| 172 | + | distribution, or any project not shot, recorded, or originally created in Georgia.141 |
|---|
| 173 | + | (12)(8) 'Resident' means an individual as designated pursuant to paragraph (10) of Code142 |
|---|
| 174 | + | Section 48-7-1, as amended.143 |
|---|
| 175 | + | (13)(9) 'State certified production' means a production engaged in qualified production144 |
|---|
| 176 | + | activities which have been approved by the Department of Economic Development in145 |
|---|
| 177 | + | accordance with regulations promulgated pursuant to this Code section. In the instance146 |
|---|
| 178 | + | H. B. 1180 (SUB) |
|---|
| 179 | + | - 6 - 24 LC 50 0785S |
|---|
| 180 | + | of a 'work work for hire' hire in which one production company or qualified interactive147 |
|---|
| 181 | + | entertainment production company hires another production company or qualified148 |
|---|
| 182 | + | interactive entertainment production company to produce a project or contribute elements149 |
|---|
| 183 | + | of a project for pay, the hired company shall be considered a service provider for the150 |
|---|
| 184 | + | hiring company, and the hiring company shall be entitled to the film tax credit allowed151 |
|---|
| 185 | + | under this Code section.152 |
|---|
| 186 | + | (14)(10) 'Total aggregate payroll' means the total sum expended by a production153 |
|---|
| 187 | + | company or qualified interactive entertainment production company on salaries paid to154 |
|---|
| 188 | + | employees working within this state in a state certified production or productions. For155 |
|---|
| 189 | + | purposes of this paragraph:156 |
|---|
| 190 | + | (A) With respect to a single employee, the portion of any salary which exceeds157 |
|---|
| 191 | + | $500,000.00 for a single production shall not be included when calculating total158 |
|---|
| 192 | + | aggregate payroll; and159 |
|---|
| 193 | + | (B) All payments to a single employee and any legal entity in which the employee has160 |
|---|
| 194 | + | any direct or indirect ownership interest shall be considered as having been paid to the161 |
|---|
| 195 | + | employee and shall be aggregated regardless of the means of payment or distribution.162 |
|---|
| 196 | + | (c) For any production company or qualified interactive entertainment production163 |
|---|
| 197 | + | company and its affiliates that invest in a state certified production approved by the164 |
|---|
| 198 | + | Department of Economic Development and whose average annual total production165 |
|---|
| 199 | + | expenditures in this state did not exceed $30 million for 2002, 2003, and 2004, there shall166 |
|---|
| 200 | + | be allowed an income tax credit against the tax imposed under this article. The tax credit167 |
|---|
| 201 | + | under this subsection shall be allowed if the base investment by a production company and168 |
|---|
| 202 | + | its affiliates that invest in state certified productions in this state equals or exceeds169 |
|---|
| 203 | + | $500,000.00 for qualified production activities a single state certified production or $10170 |
|---|
| 204 | + | million for all state certified productions, except that any qualified interactive171 |
|---|
| 205 | + | entertainment production company shall be allowed the tax credit under this subsection if172 |
|---|
| 206 | + | H. B. 1180 (SUB) |
|---|
| 207 | + | - 7 - 24 LC 50 0785S |
|---|
| 208 | + | the base investment in this state equals or exceeds $250,000.00 for qualified production173 |
|---|
| 209 | + | activities on or after January 1, 2018, and shall be calculated as follows:174 |
|---|
| 210 | + | (1) The production company or qualified interactive entertainment production company175 |
|---|
| 211 | + | shall be allowed a tax credit equal to 20 percent of the base investment in this state; and176 |
|---|
| 212 | + | (2)(A) The production company or qualified interactive entertainment production177 |
|---|
| 213 | + | company shall be allowed an additional tax credit equal to 10 percent of such base178 |
|---|
| 214 | + | investment, as determined as a result of the audit required by subsection (k) of this179 |
|---|
| 215 | + | Code section, if the qualified production activity includes a qualified Georgia180 |
|---|
| 216 | + | promotion. Such additional tax credit shall be allowed for any qualified production that181 |
|---|
| 217 | + | includes a qualified Georgia promotion upon its release to the general public. In lieu182 |
|---|
| 218 | + | of the inclusion of the Georgia promotional logo, the production company or qualified183 |
|---|
| 219 | + | interactive entertainment production company may offer alternative marketing184 |
|---|
| 220 | + | opportunities to be evaluated by the Department of Economic Development to ensure185 |
|---|
| 221 | + | that they offer equal or greater promotional value to the State of Georgia. The186 |
|---|
| 222 | + | Department of Economic Development shall electronically certify to the Department187 |
|---|
| 223 | + | of Revenue when the requirements of this subparagraph and paragraph (2) of subsection188 |
|---|
| 224 | + | (d) of this Code section have been met. state certified production meets at least four of189 |
|---|
| 225 | + | the following criteria:190 |
|---|
| 226 | + | (i) At least 50 percent of the number of crew members performing services in this191 |
|---|
| 227 | + | state are Georgia residents;192 |
|---|
| 228 | + | (ii) At least 50 percent of the total number of vendors providing goods or services in193 |
|---|
| 229 | + | this state are Georgia vendors;194 |
|---|
| 230 | + | (iii) It incurs at least $30 million of production expenditures in this state;195 |
|---|
| 231 | + | (iv) At least 50 percent of its photography days occur in one or more counties that196 |
|---|
| 232 | + | have been underutilized by production companies as determined by the Department197 |
|---|
| 233 | + | of Economic Development;198 |
|---|
| 234 | + | H. B. 1180 (SUB) |
|---|
| 235 | + | - 8 - 24 LC 50 0785S |
|---|
| 236 | + | (v) At least 50 percent of its total photography days in studio facilities are in studio199 |
|---|
| 237 | + | facilities in this state, including, but not limited to, soundstages and backlots, or the200 |
|---|
| 238 | + | company or its affiliates:201 |
|---|
| 239 | + | (I) Make capital improvements to a studio facility in this state that are in a form202 |
|---|
| 240 | + | and manner approved by the Department of Economic Development based on the203 |
|---|
| 241 | + | value of the capital improvements relative to the amount of tax credit sought; or 204 |
|---|
| 242 | + | (II) Enters into a lease of at least five years in duration with a studio facility in this205 |
|---|
| 243 | + | state with at least 100,000 square feet of production space, including, but not limited206 |
|---|
| 244 | + | to, soundstages, backlots, and production offices;207 |
|---|
| 245 | + | (vi) The company agrees to contract with Georgia vendors for 20 percent of such208 |
|---|
| 246 | + | production's postproduction expenditures or contracts with Georgia vendors for 20209 |
|---|
| 247 | + | percent of such production's visual effects expenditures;210 |
|---|
| 248 | + | (vii) The company participates in or supports at least one Georgia workforce211 |
|---|
| 249 | + | development program, including, but not limited to, a Georgia Film Academy212 |
|---|
| 250 | + | program;213 |
|---|
| 251 | + | (viii) It includes a qualified Georgia promotion, or the company engages in214 |
|---|
| 252 | + | alternative marketing opportunities approved by the Department of Economic215 |
|---|
| 253 | + | Development based on a determination that such activities offer promotional value216 |
|---|
| 254 | + | to the state equal to or greater than the promotional value of a qualified Georgia217 |
|---|
| 255 | + | promotion; or218 |
|---|
| 256 | + | (ix) The company contracts for the recording in Georgia of elements of the state219 |
|---|
| 257 | + | certified production's music score or one or more songs included in the state certified220 |
|---|
| 258 | + | production's soundtrack, licenses music from a Georgia resident or company doing221 |
|---|
| 259 | + | business in Georgia, or contracts with one or more Georgia residents for the222 |
|---|
| 260 | + | composition or performance of music for incorporation into the state certified223 |
|---|
| 261 | + | production's music score or one or more songs included into the state certified224 |
|---|
| 262 | + | production's soundtrack.225 |
|---|
| 263 | + | H. B. 1180 (SUB) |
|---|
| 264 | + | - 9 - 24 LC 50 0785S |
|---|
| 265 | + | (B) The Department of Economic Development shall prepare an annual report detailing |
|---|
| 266 | + | 226 |
|---|
| 267 | + | the alternative |
|---|
| 268 | + | marketing opportunities it has approved under the provisions of227 |
|---|
| 269 | + | subparagraph (A) of this paragraph. The report shall include, but not be limited to:228 |
|---|
| 270 | + | (i) The goals and strategy behind each alternative marketing opportunity approved229 |
|---|
| 271 | + | pursuant to the provisions of subparagraph (A) of this paragraph;230 |
|---|
| 272 | + | (ii) The names of all production companies approved by the Department of Economic231 |
|---|
| 273 | + | Development to provide alternative marketing opportunities;232 |
|---|
| 274 | + | (iii) The estimated value to the state of each approved alternative marketing233 |
|---|
| 275 | + | opportunity compared to the estimated value of the Georgia promotional logo; and234 |
|---|
| 276 | + | (iv) The names of all production companies who that chose to include the Georgia235 |
|---|
| 277 | + | promotional logo in their final production instead of offering the state an alternative236 |
|---|
| 278 | + | marketing proposal.237 |
|---|
| 279 | + | The report required under this paragraph subparagraph shall be completed no later than238 |
|---|
| 280 | + | January 1 of each year and presented to each member of the House Committee on Ways239 |
|---|
| 281 | + | and Means, the Senate Finance Committee, the Senate Economic Development and240 |
|---|
| 282 | + | Tourism Committee, the House Committee on Economic Development and Tourism,241 |
|---|
| 283 | + | and the Governor.242 |
|---|
| 284 | + | (C) The additional percentage of tax credit allowed by this paragraph and by paragraph243 |
|---|
| 285 | + | (2) of subsection (d) of this Code section shall not be allowed to a production company244 |
|---|
| 286 | + | for any qualified production activity or state certified production that has not been245 |
|---|
| 287 | + | commercially distributed in multiple markets.246 |
|---|
| 288 | + | (D) The additional percentage of tax credit that is allowed by this paragraph and by247 |
|---|
| 289 | + | paragraph (2) of subsection (d) of this Code section shall not be issued final248 |
|---|
| 290 | + | certification pursuant to subsection (l) (k) of this Code section unless and until the state249 |
|---|
| 291 | + | certified production has been commercially distributed in multiple markets within five250 |
|---|
| 292 | + | years of the date that the project was first certified by the Department of Economic251 |
|---|
| 293 | + | Development.252 |
|---|
| 294 | + | H. B. 1180 (SUB) |
|---|
| 295 | + | - 10 - 24 LC 50 0785S |
|---|
| 296 | + | (3) The base investment and the amount of the credit allowed by this subsection and by |
|---|
| 297 | + | 253 |
|---|
| 298 | + | subsection (d) of this Code section with respect to a production company shall be subject254 |
|---|
| 299 | + | to the limitations of and any reductions required by subsection (l) |
|---|
| 300 | + | (k) of this Code section.255 |
|---|
| 301 | + | (d) For any production company or qualified interactive entertainment production256 |
|---|
| 302 | + | company and its affiliates that invest in a state certified production approved by the257 |
|---|
| 303 | + | Department of Economic Development and whose average annual total production258 |
|---|
| 304 | + | expenditures in this state exceeded $30 million for 2002, 2003, and 2004, there shall be259 |
|---|
| 305 | + | allowed an income tax credit against the tax imposed under this article. For purposes of260 |
|---|
| 306 | + | this subsection, the excess base investment in this state is computed by taking the current261 |
|---|
| 307 | + | year production expenditures in a state certified production and subtracting the average of262 |
|---|
| 308 | + | the annual total production expenditures for 2002, 2003, and 2004. The tax credit shall be263 |
|---|
| 309 | + | calculated as follows:264 |
|---|
| 310 | + | (1) If the excess base investment by a production company and its affiliates that invest265 |
|---|
| 311 | + | in state certified productions in this state equals or exceeds $500,000.00 for a single state266 |
|---|
| 312 | + | certified production or $10 million for all state certified productions, or $250,000.00 for267 |
|---|
| 313 | + | qualified interactive entertainment production activities on or after January 1, 2018, the268 |
|---|
| 314 | + | production company or qualified interactive entertainment production company and its269 |
|---|
| 315 | + | affiliates shall be allowed a tax credit of 20 percent of such excess base investment; and270 |
|---|
| 316 | + | (2)(A) The production company or qualified interactive entertainment production271 |
|---|
| 317 | + | company and its affiliates shall be allowed an additional tax credit equal to 10 percent of272 |
|---|
| 318 | + | the excess base investment, as determined as a result of the audit required by subsection273 |
|---|
| 319 | + | (k) of this Code section, if the qualified production activities include a qualified Georgia274 |
|---|
| 320 | + | promotion. Such additional tax credit shall be allowed for any qualified production that275 |
|---|
| 321 | + | includes a qualified Georgia promotion upon its release to the general public. In lieu of276 |
|---|
| 322 | + | the inclusion of the Georgia promotional logo, the production company or qualified277 |
|---|
| 323 | + | interactive entertainment production company may offer marketing opportunities to be278 |
|---|
| 324 | + | evaluated by the Department of Economic Development to ensure that they offer equal279 |
|---|
| 325 | + | H. B. 1180 (SUB) |
|---|
| 326 | + | - 11 - 24 LC 50 0785S |
|---|
| 327 | + | or greater promotional value to the State of Georgia state certified production meets at280 |
|---|
| 328 | + | least four of the criteria provided in divisions (c)(2)(A)(i) through (c)(2)(A)(ix).281 |
|---|
| 329 | + | (B) The Department of Economic Development shall prepare an annual report detailing282 |
|---|
| 330 | + | the marketing opportunities it has approved under the provisions of subparagraph (A)283 |
|---|
| 331 | + | of this paragraph. The report shall include, but not be limited to:284 |
|---|
| 332 | + | (i) The goals and strategy behind each marketing opportunity approved pursuant to285 |
|---|
| 333 | + | the provisions of subparagraph (A) of this paragraph;286 |
|---|
| 334 | + | (ii) The names of all production companies approved by the Department of Economic287 |
|---|
| 335 | + | Development to provide alternative marketing opportunities;288 |
|---|
| 336 | + | (iii) The estimated value to the state of each approved alternative marketing289 |
|---|
| 337 | + | opportunity compared to the estimated value of the Georgia promotional logo; and290 |
|---|
| 338 | + | (iv) The names of all production companies who chose to include the Georgia291 |
|---|
| 339 | + | promotional logo in their final production instead of offering the state an alternative292 |
|---|
| 340 | + | marketing proposal.293 |
|---|
| 341 | + | The report required under this paragraph shall be completed no later than January 1 of294 |
|---|
| 342 | + | each year and presented to each member of the House Committee on Ways and Means,295 |
|---|
| 343 | + | the Senate Finance Committee, the Senate Economic Development and Tourism296 |
|---|
| 344 | + | Committee, the House Committee on Economic Development and Tourism, and the297 |
|---|
| 345 | + | Governor.298 |
|---|
| 346 | + | (e)(1) In no event shall the aggregate amount of tax credits allowed under this Code299 |
|---|
| 347 | + | section for qualified interactive entertainment production companies and affiliates exceed300 |
|---|
| 348 | + | $25 million for taxable years beginning on or after January 1, 2013, and before January301 |
|---|
| 349 | + | 1, 2014. The maximum credit for any qualified interactive entertainment production302 |
|---|
| 350 | + | company and its affiliates shall be $5 million for such taxable year. When the $25303 |
|---|
| 351 | + | million cap is reached, the tax credit for qualified interactive entertainment production304 |
|---|
| 352 | + | companies shall expire for such taxable years.305 |
|---|
| 353 | + | H. B. 1180 (SUB) |
|---|
| 354 | + | - 12 - 24 LC 50 0785S |
|---|
| 355 | + | (2) For taxable years beginning on or after January 1, 2014, and before January 1, 2015,306 |
|---|
| 356 | + | the amount of tax credits allowed under this Code section for qualified interactive307 |
|---|
| 357 | + | entertainment production companies and affiliates shall not exceed $12.5 million.308 |
|---|
| 358 | + | (3) For taxable years beginning on or after January 1, 2015, and before January 1, 2016,309 |
|---|
| 359 | + | the amount of tax credits allowed under this Code section for qualified interactive310 |
|---|
| 360 | + | entertainment production companies and affiliates shall not exceed $12.5 million.311 |
|---|
| 361 | + | (4) For taxable years beginning on or after January 1, 2016, and before January 1, 2018,312 |
|---|
| 362 | + | the amount of tax credits allowed under this Code section for qualified interactive313 |
|---|
| 363 | + | entertainment production companies and affiliates shall not exceed $12.5 million for each314 |
|---|
| 364 | + | taxable year.315 |
|---|
| 365 | + | (5)(A) For taxable years beginning on or after January 1, 2018, the amount of tax316 |
|---|
| 366 | + | credits allowed under this Code section for qualified interactive entertainment317 |
|---|
| 367 | + | production companies and affiliates shall not exceed $12.5 million for each taxable318 |
|---|
| 368 | + | year.319 |
|---|
| 369 | + | (B) Beginning on or after January 1, 2018, qualified interactive entertainment320 |
|---|
| 370 | + | production companies are eligible for tax credits for prereleased interactive game321 |
|---|
| 371 | + | production; provided, however, that such credits shall not be available for a period322 |
|---|
| 372 | + | which exceeds three years.323 |
|---|
| 373 | + | (6) The maximum allowable credit claimed for any qualified interactive entertainment324 |
|---|
| 374 | + | production company and its affiliates shall not exceed $1.5 million in any single year.325 |
|---|
| 375 | + | (7) Qualified interactive entertainment production companies seeking to claim a tax326 |
|---|
| 376 | + | credit under the provisions of this Code section shall submit an application to the327 |
|---|
| 377 | + | commissioner for preapproval of such tax credit. The commissioner shall be authorized328 |
|---|
| 378 | + | to promulgate any rules and regulations and forms necessary to implement and administer329 |
|---|
| 379 | + | the provisions of this Code section. The commissioner shall preapprove the tax credits330 |
|---|
| 380 | + | based on the order in which properly completed applications were submitted. In the331 |
|---|
| 381 | + | event that two or more applications were submitted on the same day and the amount of332 |
|---|
| 382 | + | H. B. 1180 (SUB) |
|---|
| 383 | + | - 13 - 24 LC 50 0785S |
|---|
| 384 | + | funds available will not be sufficient to fully fund the tax credits requested, the333 |
|---|
| 385 | + | commissioner shall prorate the available funds between or among the applicants.334 |
|---|
| 386 | + | (8) No qualified interactive entertainment production company shall be allowed to claim335 |
|---|
| 387 | + | an amount of tax credits under this Code section for any single year in excess of its total336 |
|---|
| 388 | + | aggregate payroll expended to employees working within this state for the calendar year337 |
|---|
| 389 | + | that the qualified interactive entertainment production company claims the tax credits. 338 |
|---|
| 390 | + | Any amount in excess of such limit shall not be eligible for carry forward to the339 |
|---|
| 391 | + | succeeding years' tax liability, nor shall such excess amount be eligible for use against340 |
|---|
| 392 | + | the qualified interactive entertainment production company's quarterly or monthly341 |
|---|
| 393 | + | payment under Code Section 48-7-103, nor shall such excess amount be assigned, sold,342 |
|---|
| 394 | + | or transferred to any other taxpayer.343 |
|---|
| 395 | + | (9) Before the Department of Economic Development issues its approval to the qualified344 |
|---|
| 396 | + | interactive entertainment production company for the qualified production activities345 |
|---|
| 397 | + | related to interactive entertainment, the qualified interactive entertainment production346 |
|---|
| 398 | + | company must certify to the department that:347 |
|---|
| 399 | + | (A) The qualified interactive entertainment production company maintains a business348 |
|---|
| 400 | + | location physically located in this state; and349 |
|---|
| 401 | + | (B) The qualified interactive entertainment production company had expended a total350 |
|---|
| 402 | + | aggregate payroll of $500,000.00 or more, or $250,000.00 or more on or after January351 |
|---|
| 403 | + | 1, 2018, for employees working within this state during the taxable year of the qualified352 |
|---|
| 404 | + | interactive entertainment production company.353 |
|---|
| 405 | + | The department shall issue a certification that the qualified interactive entertainment354 |
|---|
| 406 | + | production company meets the requirements of this paragraph; provided, however, that355 |
|---|
| 407 | + | the department shall not issue any certifications before July 1, 2014. The qualified356 |
|---|
| 408 | + | interactive entertainment production company shall provide such certification to the357 |
|---|
| 409 | + | Department of Economic Development. The Department of Economic Development358 |
|---|
| 410 | + | shall not issue its approval until it receives such certification.359 |
|---|
| 411 | + | H. B. 1180 (SUB) |
|---|
| 412 | + | - 14 - 24 LC 50 0785S |
|---|
| 413 | + | (10)(A) For taxable years beginning on or after January 1, 2016, the qualified360 |
|---|
| 414 | + | interactive entertainment production company shall report to the Department of361 |
|---|
| 415 | + | Revenue on its Georgia income tax return the monthly average number of full-time362 |
|---|
| 416 | + | employees subject to Georgia income tax withholding for the taxable year as provided363 |
|---|
| 417 | + | in subparagraphs (B) and (C) of this paragraph. For purposes of this paragraph, a364 |
|---|
| 418 | + | full-time employee shall mean a person who performs a job that requires a minimum365 |
|---|
| 419 | + | of 35 hours a week, and pays at or above the average wage earned in the county with366 |
|---|
| 420 | + | the lowest average wage earned in this state, as reported in the most recently available367 |
|---|
| 421 | + | annual issue of the Georgia Employment and Wages Averages Report of the368 |
|---|
| 422 | + | Department of Labor.369 |
|---|
| 423 | + | (B) For taxable years beginning on or after January 1, 2016, and before January 1,370 |
|---|
| 424 | + | 2017, the qualified interactive entertainment production company shall report such371 |
|---|
| 425 | + | number for such taxable year and separately for each of the prior two taxable years.372 |
|---|
| 426 | + | (C) For taxable years beginning on or after January 1, 2017, the qualified interactive373 |
|---|
| 427 | + | entertainment production company shall report such number for each respective taxable374 |
|---|
| 428 | + | year.375 |
|---|
| 429 | + | (D) Notwithstanding Code Sections 48-2-15, 48-7-60, and 48-7-61, for such taxable376 |
|---|
| 430 | + | years, the commissioner shall report yearly to the House Committee on Ways and377 |
|---|
| 431 | + | Means and the Senate Finance Committee. The report shall include the name, tax year378 |
|---|
| 432 | + | beginning, and monthly average number of full-time employees for each qualified379 |
|---|
| 433 | + | interactive entertainment production company. The first report shall be submitted by380 |
|---|
| 434 | + | June 30, 2016, and each year thereafter by June 30.381 |
|---|
| 435 | + | (f)(1)(e)(1) Where If the amount of such credit or credits tax credits allowed under this382 |
|---|
| 436 | + | Code section exceeds the production company's or qualified interactive entertainment383 |
|---|
| 437 | + | production company's liability for such taxes owed pursuant to this article in a taxable384 |
|---|
| 438 | + | year, the excess may be taken as a credit against such production company's or qualified385 |
|---|
| 439 | + | interactive entertainment production company's quarterly or monthly payment under386 |
|---|
| 440 | + | H. B. 1180 (SUB) |
|---|
| 441 | + | - 15 - 24 LC 50 0785S |
|---|
| 442 | + | Code Section 48-7-103. Each employee whose employer receives credit against such |
|---|
| 443 | + | 387 |
|---|
| 444 | + | production company's or qualified interactive entertainment production company's |
|---|
| 445 | + | 388 |
|---|
| 446 | + | quarterly or monthly payment under Code Section 48-7-103 shall receive credit against389 |
|---|
| 447 | + | his or her income tax liability under Code Section 48-7-20 for the corresponding taxable390 |
|---|
| 448 | + | year for the full amount which would be credited against such liability prior to the391 |
|---|
| 449 | + | application of the credit provided for in this subsection. Credits against quarterly or392 |
|---|
| 450 | + | monthly payments under Code Section 48-7-103 and credits against liability under Code393 |
|---|
| 451 | + | Section 48-7-20 established by this subsection shall not constitute income to the394 |
|---|
| 452 | + | production company or qualified interactive entertainment production company.395 |
|---|
| 453 | + | (2) If a production company and its affiliates, or a qualified interactive entertainment396 |
|---|
| 454 | + | production company and its affiliates, claim the a credit authorized under Code Section397 |
|---|
| 455 | + | 48-7-40, 48-7-40.1, 48-7-40.17, or 48-7-40.18, then the production company and its398 |
|---|
| 456 | + | affiliates, or the qualified interactive entertainment production company and its affiliates,399 |
|---|
| 457 | + | will shall only be allowed to claim the credit authorized under this Code section to the400 |
|---|
| 458 | + | extent that the Georgia resident employees included in the credit calculation authorized401 |
|---|
| 459 | + | under this Code section and taken by the production company and its affiliates, or the402 |
|---|
| 460 | + | qualified interactive entertainment production company and its affiliates, on such tax403 |
|---|
| 461 | + | return under this Code section have been permanently excluded from the credit404 |
|---|
| 462 | + | authorized under Code Section 48-7-40, 48-7-40.1, 48-7-40.17, or 48-7-40.18.405 |
|---|
| 463 | + | (g)(f) Any tax credits with respect to a state certified production earned by a production406 |
|---|
| 464 | + | company or qualified interactive entertainment production company and previously407 |
|---|
| 465 | + | claimed but not used by such production company or qualified interactive entertainment408 |
|---|
| 466 | + | production company against its income tax liability may be transferred or sold in whole or409 |
|---|
| 467 | + | in part by such production company or qualified interactive entertainment production410 |
|---|
| 468 | + | company to another Georgia taxpayer,; provided, however, that such transfers and sales411 |
|---|
| 469 | + | shall be subject to the following conditions:412 |
|---|
| 470 | + | H. B. 1180 (SUB) |
|---|
| 471 | + | - 16 - 24 LC 50 0785S |
|---|
| 472 | + | (1)(A) The total amount of such transfers or sales in a calendar year shall not exceed413 |
|---|
| 473 | + | an amount equal to 2.5 percent of the total budget in the General Appropriations Act414 |
|---|
| 474 | + | as passed and signed into law for the corresponding fiscal year.415 |
|---|
| 475 | + | (B) The Department of Revenue shall issue tax credit certificates that identify the416 |
|---|
| 476 | + | calendar year in which the credit may first be transferred or sold. Such tax credit417 |
|---|
| 477 | + | certificates shall identify the current calendar year as the first year such certificates may418 |
|---|
| 478 | + | be transferred or sold for the amount of credits allowed to be transferred or sold419 |
|---|
| 479 | + | pursuant to subparagraph (A) of this paragraph.420 |
|---|
| 480 | + | (C) Any tax credit certificates available to be issued by the Department of Revenue in421 |
|---|
| 481 | + | the current calendar year in excess of the amount of credits allowed to be transferred422 |
|---|
| 482 | + | or sold pursuant to subparagraph (A) of this paragraph shall be issued and available to423 |
|---|
| 483 | + | be transferred or sold in the next calendar year for which such amount has not been424 |
|---|
| 484 | + | reached in the order in which final certificates were available to be issued by the425 |
|---|
| 485 | + | department but for reaching the annual limit, and the amount of such credit certificates426 |
|---|
| 486 | + | shall count toward the amount of credits allowed to be transferred or sold pursuant to427 |
|---|
| 487 | + | subparagraph (A) of this paragraph for that year.428 |
|---|
| 488 | + | (D) A production company may elect to not transfer or sell in whole or in part tax429 |
|---|
| 489 | + | credits with respect to a state certified production to another Georgia taxpayer pursuant430 |
|---|
| 490 | + | to subsection (f) of this Code section and may use such tax credit in the taxable year it431 |
|---|
| 491 | + | is issued final certification. Tax credits that a production company makes an election432 |
|---|
| 492 | + | to not sell or transfer shall not count toward the maximum amount allowed to be433 |
|---|
| 493 | + | transferred or sold pursuant to subparagraph (A) of this paragraph. The production434 |
|---|
| 494 | + | company shall make the election on a form and manner provided by the department.435 |
|---|
| 495 | + | (E) A production company may revoke its election under subparagraph (D) of this436 |
|---|
| 496 | + | paragraph at any point during the carry-forward period authorized under subsection (g)437 |
|---|
| 497 | + | of this Code section by submitting a request to the department for the credit certificate438 |
|---|
| 498 | + | to be transferred. The department shall issue a new tax credit certificate providing the439 |
|---|
| 499 | + | H. B. 1180 (SUB) |
|---|
| 500 | + | - 17 - 24 LC 50 0785S |
|---|
| 501 | + | first year a transferee may use the tax credit based on the amount of credits allowed to440 |
|---|
| 502 | + | be transferred or sold pursuant to subparagraph (A) of this paragraph and the remaining441 |
|---|
| 503 | + | carry forward period from the date of issuance of such new certificate.442 |
|---|
| 504 | + | (1)(2) Such production company or qualified interactive entertainment production443 |
|---|
| 505 | + | company may make only a single transfer or sale of tax credits earned in a taxable year;444 |
|---|
| 506 | + | provided, however, that the transfer or sale may involve one or more transferees;445 |
|---|
| 507 | + | (2)(3) Such production company or qualified interactive entertainment production446 |
|---|
| 508 | + | company shall submit to the Department of Economic Development and to the447 |
|---|
| 509 | + | Department of Revenue a written notification of any transfer or sale of tax credits within448 |
|---|
| 510 | + | 30 days after the transfer or sale of such tax credits. The notification shall include such449 |
|---|
| 511 | + | production company's or qualified interactive entertainment production company's tax450 |
|---|
| 512 | + | credit balance prior to transfer, the credit certificate number, the remaining balance after451 |
|---|
| 513 | + | transfer, all tax identification numbers for each transferee, the date of transfer, the amount452 |
|---|
| 514 | + | transferred, and any other information required by the Department of Economic453 |
|---|
| 515 | + | Development or the Department of Revenue;454 |
|---|
| 516 | + | (3)(4) Failure to comply with this subsection shall result in the disallowance of the tax455 |
|---|
| 517 | + | credit until the production company or qualified interactive entertainment production456 |
|---|
| 518 | + | company is in full compliance;457 |
|---|
| 519 | + | (4)(5) The transfer or sale of this tax credit does not extend the time in which such tax458 |
|---|
| 520 | + | credit can be used. The carry-forward period for a tax credit that is transferred or sold459 |
|---|
| 521 | + | shall begin on the date on which the tax credit was originally earned or for a tax credit460 |
|---|
| 522 | + | subject to the provisions of subsection (l) (k) of this Code section, the date on which the461 |
|---|
| 523 | + | final certification for such tax credit was issued pursuant to said subsection;462 |
|---|
| 524 | + | (5)(6) A transferee shall have only such rights to claim and use the tax credit that were463 |
|---|
| 525 | + | available to such production company or qualified interactive entertainment production464 |
|---|
| 526 | + | company at the time of the transfer, except for the use of the credit in paragraph (l) (k)465 |
|---|
| 527 | + | of subsection (f) (e) of this Code section. To the extent that such production company466 |
|---|
| 528 | + | H. B. 1180 (SUB) |
|---|
| 529 | + | - 18 - 24 LC 50 0785S |
|---|
| 530 | + | or qualified interactive entertainment production company did not have rights to claim467 |
|---|
| 531 | + | or use the tax credit at the time of the transfer, the Department of Revenue shall either468 |
|---|
| 532 | + | disallow the tax credit claimed by the transferee or recapture the tax credit from the469 |
|---|
| 533 | + | transferee; provided, however, that the Department of Revenue shall not recapture a tax470 |
|---|
| 534 | + | credit from the transferee if the tax credit was issued a valid final certification pursuant471 |
|---|
| 535 | + | to subsection (l) (k) of this Code section. The transferee's recourse is against such472 |
|---|
| 536 | + | production company or qualified interactive entertainment production company; and473 |
|---|
| 537 | + | (6)(7) The transferee must shall acquire the tax credits in this Code section for a474 |
|---|
| 538 | + | minimum of 60 percent of the amount of the tax credits so transferred.475 |
|---|
| 539 | + | (h) The credit granted under this Code section shall be subject to the following conditions476 |
|---|
| 540 | + | and limitations; provided, however, that this subsection shall not apply to a production477 |
|---|
| 541 | + | company subject to the requirements of subsection (h.1) or (l) of this Code section:478 |
|---|
| 542 | + | (1) The credit may be taken beginning with the taxable year in which the production479 |
|---|
| 543 | + | company or qualified interactive entertainment production company has met the480 |
|---|
| 544 | + | investment requirement. For each year in which such production company or qualified481 |
|---|
| 545 | + | interactive entertainment production company either claims or transfers the credit, the482 |
|---|
| 546 | + | production company or qualified interactive entertainment production company shall483 |
|---|
| 547 | + | attach a schedule to the production company's or qualified interactive entertainment484 |
|---|
| 548 | + | production company's Georgia income tax return which will set forth the following485 |
|---|
| 549 | + | information, as a minimum:486 |
|---|
| 550 | + | (A) A description of the qualified production activities, along with the certification487 |
|---|
| 551 | + | from the Department of Economic Development;488 |
|---|
| 552 | + | (B) A detailed listing of the employee names, social security numbers, and Georgia489 |
|---|
| 553 | + | wages when salaries are included in the base investment;490 |
|---|
| 554 | + | (C) The amount of tax credit claimed for the taxable year;491 |
|---|
| 555 | + | (D) Any tax credit previously taken by the production company or qualified interactive492 |
|---|
| 556 | + | entertainment production company against Georgia income tax liabilities or the493 |
|---|
| 557 | + | H. B. 1180 (SUB) |
|---|
| 558 | + | - 19 - 24 LC 50 0785S |
|---|
| 559 | + | production company's or qualified interactive entertainment production company's494 |
|---|
| 560 | + | quarterly or monthly payments under Code Section 48-7-103;495 |
|---|
| 561 | + | (E) The amount of tax credit carried over from prior years;496 |
|---|
| 562 | + | (F) The amount of tax credit utilized by the production company or qualified497 |
|---|
| 563 | + | interactive entertainment production company in the current taxable year; and498 |
|---|
| 564 | + | (G) The amount of tax credit to be carried over to subsequent tax years;499 |
|---|
| 565 | + | (2) In the initial year in which the production company or qualified interactive500 |
|---|
| 566 | + | entertainment production company claims the credit granted in this Code section, the501 |
|---|
| 567 | + | production company or qualified interactive entertainment production company shall502 |
|---|
| 568 | + | include in the description of the qualified production activities required by subparagraph503 |
|---|
| 569 | + | (A) of paragraph (1) of this subsection information which demonstrates that the activities504 |
|---|
| 570 | + | included in the base investment or excess base investment equal or exceed $500,000.00505 |
|---|
| 571 | + | during such year, or $250,000.00 on or after January 1, 2018, for qualified interactive506 |
|---|
| 572 | + | entertainment production companies; and507 |
|---|
| 573 | + | (3) In no event shall the amount of the tax credit under this Code section for a taxable508 |
|---|
| 574 | + | year exceed the production company's or qualified interactive entertainment production509 |
|---|
| 575 | + | company's income tax liability. Any unused credit amount shall be allowed to be carried510 |
|---|
| 576 | + | forward for five years from the close of the taxable year in which the investment511 |
|---|
| 577 | + | occurred. No such credit shall be allowed the production company or qualified512 |
|---|
| 578 | + | interactive entertainment production company against prior years' tax liability.513 |
|---|
| 579 | + | (h.1)(1) For any projects certified by the Department of Economic Development on or514 |
|---|
| 580 | + | after January 1, 2021, the515 |
|---|
| 581 | + | (g)(1) The tax credit provided for in this Code section if covered under the schedule516 |
|---|
| 582 | + | provided in paragraph (1) of subsection (l) of this Code section shall not be allowed,517 |
|---|
| 583 | + | claimed, assigned, sold, transferred, or utilized in any manner by a production company518 |
|---|
| 584 | + | until final certification is issued pursuant to subsection (l) (k) of this Code section and519 |
|---|
| 585 | + | except under the following conditions and limitations of provided in this subsection.520 |
|---|
| 586 | + | H. B. 1180 (SUB) |
|---|
| 587 | + | - 20 - 24 LC 50 0785S |
|---|
| 588 | + | (2) A production company seeking the tax credit allowed by this Code section shall |
|---|
| 589 | + | 521 |
|---|
| 590 | + | apply for the tax credit in the manner provided by the Department of Revenue within one522 |
|---|
| 591 | + | year from the date that it completes a state certified production. The following523 |
|---|
| 592 | + | information shall be submitted with the application or prior to the commencement of an524 |
|---|
| 593 | + | audit required by subsection (l) |
|---|
| 594 | + | (k) of this Code section:525 |
|---|
| 595 | + | (A) A description of the state certified production, along with its certification as a state526 |
|---|
| 596 | + | certified production by the Department of Economic Development;527 |
|---|
| 597 | + | (B) A detailed accounting of all qualified production activities and the attendant528 |
|---|
| 598 | + | production expenditures included in the base investment for the state certified529 |
|---|
| 599 | + | production;530 |
|---|
| 600 | + | (C) A detailed listing of the employee names, social security numbers, and Georgia531 |
|---|
| 601 | + | wages when salaries are included in the base investment;532 |
|---|
| 602 | + | (D) Receipts for tangible personal property included in the base investment as533 |
|---|
| 603 | + | requested by the Department of Revenue or the eligible auditor hired to conduct the534 |
|---|
| 604 | + | audit for the state certified production;535 |
|---|
| 605 | + | (E) Contracts for goods or services included in the base investment as requested by the536 |
|---|
| 606 | + | Department of Revenue or the eligible auditor hired to conduct the audit for the state537 |
|---|
| 607 | + | certified production;538 |
|---|
| 608 | + | (F) An Internal Revenue Service Form W-9 completed and issued by each vendor for539 |
|---|
| 609 | + | which expenditures are included in the base investment as requested by the Department540 |
|---|
| 610 | + | of Revenue or the eligible auditor hired to conduct the audit for the state certified541 |
|---|
| 611 | + | production;542 |
|---|
| 612 | + | (G) Notification as provided for in paragraph (7) of subsection (l) (k) of this Code543 |
|---|
| 613 | + | section of any intent to utilize an eligible auditor;544 |
|---|
| 614 | + | (H) A description of the status of the distribution of the state certified production and545 |
|---|
| 615 | + | information related to any qualified Georgia promotion connected with such546 |
|---|
| 616 | + | production;547 |
|---|
| 617 | + | H. B. 1180 (SUB) |
|---|
| 618 | + | - 21 - 24 LC 50 0785S |
|---|
| 619 | + | (I) For any projects certified by the Department of Economic Development on or after548 |
|---|
| 620 | + | January 1, 2026, a description of the status of satisfying the requirements of549 |
|---|
| 621 | + | subparagraph (c)(2)(A) or paragraph (2) of subsection (d) if the total amount of the tax550 |
|---|
| 622 | + | credit sought for the state certified production includes the additional credit allowed in551 |
|---|
| 623 | + | subparagraph (c)(2)(A) or paragraph (2) of subsection (d);552 |
|---|
| 624 | + | (I)(J) The total amount of the tax credit sought for the state certified production; and553 |
|---|
| 625 | + | (J)(K) A statement affirming that the contents of the application are true and correct.554 |
|---|
| 626 | + | (3) If a production company is issued final certification of a tax credit pursuant to555 |
|---|
| 627 | + | subsection (l) (k) of this Code section, such tax credit shall be considered earned in the556 |
|---|
| 628 | + | taxable year in which it is issued final certification.557 |
|---|
| 629 | + | (4) For each year in which the production company either claims or transfers the tax558 |
|---|
| 630 | + | credit, the production company shall attach a schedule to the production company's559 |
|---|
| 631 | + | Georgia income tax return which will shall set forth the following information, as a560 |
|---|
| 632 | + | minimum:561 |
|---|
| 633 | + | (A) The amount of tax credit claimed for the taxable year;562 |
|---|
| 634 | + | (B) Any tax credit previously taken by the production company against Georgia563 |
|---|
| 635 | + | income tax liabilities or the production company's quarterly or monthly payments under564 |
|---|
| 636 | + | Code Section 48-7-103;565 |
|---|
| 637 | + | (C) The amount of tax credit carried over from prior years;566 |
|---|
| 638 | + | (D) The amount of tax credit utilized by the production company in the current taxable567 |
|---|
| 639 | + | year; and568 |
|---|
| 640 | + | (E) The amount of tax credit to be carried over to subsequent tax years.569 |
|---|
| 641 | + | (5) In no event shall the amount of the tax credit subject to subsection (l) (k) of this Code570 |
|---|
| 642 | + | section for a taxable year exceed the production company's income tax liability. Any571 |
|---|
| 643 | + | unused credit amount shall be allowed to be carried forward for three years from the close572 |
|---|
| 644 | + | of the taxable year in which the tax credit was issued its final certification pursuant to573 |
|---|
| 645 | + | H. B. 1180 (SUB) |
|---|
| 646 | + | - 22 - 24 LC 50 0785S |
|---|
| 647 | + | subsection (l) (k) of this Code section. No such credit shall be allowed the production574 |
|---|
| 648 | + | company against prior years' tax liability.575 |
|---|
| 649 | + | (6) This subsection shall not apply to qualified interactive entertainment production576 |
|---|
| 650 | + | companies.577 |
|---|
| 651 | + | (i)(h)(1) The Department of Economic Development shall:578 |
|---|
| 652 | + | (A) Certify each production that qualifies determine through the promulgation of rules579 |
|---|
| 653 | + | and regulations what projects qualify for the tax credits authorized under paragraph (1)580 |
|---|
| 654 | + | of subsection (c) of this Code section and paragraph (1) of subsection (d) of this Code581 |
|---|
| 655 | + | section.;582 |
|---|
| 656 | + | (B) Establish an approval process for any criteria that requires approval from the583 |
|---|
| 657 | + | Department of Economic Development as provided in divisions (c)(2)(A)(v) and (ix)584 |
|---|
| 658 | + | of this Code section;585 |
|---|
| 659 | + | (C) Submit such certifications and approvals Certification shall be submitted to the state586 |
|---|
| 660 | + | revenue commissioner; and587 |
|---|
| 661 | + | (D) Promulgate rules and regulations as are necessary to implement this subsection.588 |
|---|
| 662 | + | (2) The Department of Economic Development may charge reasonable fees associated589 |
|---|
| 663 | + | with the certification process established pursuant to this paragraph.590 |
|---|
| 664 | + | (3) If the Department of Economic Development prevails in court in an appeal of the591 |
|---|
| 665 | + | denial of certification, the production company or interactive entertainment production592 |
|---|
| 666 | + | company shall pay all court costs.593 |
|---|
| 667 | + | (j)(i) The state revenue commissioner shall promulgate such rules and regulations as are594 |
|---|
| 668 | + | necessary to implement and administer this Code section.595 |
|---|
| 669 | + | (k)(j) Any production company, except as provided in subsection (l) (k) of this Code596 |
|---|
| 670 | + | section, or qualified interactive entertainment production company claiming, transferring,597 |
|---|
| 671 | + | or selling the tax credit shall be required to reimburse the Department of Revenue for any598 |
|---|
| 672 | + | department initiated audits relating to the tax credit. This subsection shall not apply to599 |
|---|
| 673 | + | H. B. 1180 (SUB) |
|---|
| 674 | + | - 23 - 24 LC 50 0785S |
|---|
| 675 | + | routine tax audits of a taxpayer which may include the review of the credit provided in this |
|---|
| 676 | + | 600 |
|---|
| 677 | + | Code section.601 |
|---|
| 678 | + | (l) |
|---|
| 679 | + | (k)(1)(A) For any project certified by the Department of Economic Development on602 |
|---|
| 680 | + | or after January 1, 2021, a tax credit allowed by this Code section to a production603 |
|---|
| 681 | + | company shall not be claimed, assigned, sold, transferred, or utilized in any manner until604 |
|---|
| 682 | + | the production company applies for the tax credit as provided in subsection (h.1) of this605 |
|---|
| 683 | + | Code section and the department issues a final certification of the tax credit pursuant to606 |
|---|
| 684 | + | this subsection if the total amount of such tax credit sought for the project exceeds $2.5607 |
|---|
| 685 | + | million.608 |
|---|
| 686 | + | (B) For any project certified by the Department of Economic Development on or after609 |
|---|
| 687 | + | January 1, 2022, a tax credit allowed by this Code section to a production company610 |
|---|
| 688 | + | shall not be claimed, assigned, sold, transferred, or utilized in any manner until the611 |
|---|
| 689 | + | production company applies for the tax credit as provided in subsection (h.1) of this612 |
|---|
| 690 | + | Code section and the department issues a final certification of the tax credit pursuant613 |
|---|
| 691 | + | to this subsection if the total amount of such tax credit sought for the project exceeds614 |
|---|
| 692 | + | $1.25 million.615 |
|---|
| 693 | + | (C) For any project certified by the Department of Economic Development on or after616 |
|---|
| 694 | + | January 1, 2023, a No tax credit allowed by this Code section to a production company617 |
|---|
| 695 | + | shall not be claimed, assigned, sold, transferred, or utilized in any manner until the618 |
|---|
| 696 | + | production company applies for the tax credit as provided in subsection (h.1) (g) of this619 |
|---|
| 697 | + | Code section and the department issues a final certification of the tax credit pursuant620 |
|---|
| 698 | + | to this subsection.621 |
|---|
| 699 | + | (2) In accordance with the schedule provided in paragraph (1) of this subsection, prior622 |
|---|
| 700 | + | Prior to certifying a tax credit pursuant to this Code section, the Department of Revenue623 |
|---|
| 701 | + | shall conduct or cause to be conducted an audit of each tax credit allowed by this Code624 |
|---|
| 702 | + | section by either the department or an independent third party certified by the department625 |
|---|
| 703 | + | in accordance with paragraph (3) of this subsection as an eligible auditor.626 |
|---|
| 704 | + | H. B. 1180 (SUB) |
|---|
| 705 | + | - 24 - 24 LC 50 0785S |
|---|
| 706 | + | (3)(A) The Department of Revenue shall provide for the certification and |
|---|
| 707 | + | 627 |
|---|
| 708 | + | decertification of certified public accountants as eligible auditors.628 |
|---|
| 709 | + | (B) To obtain certification as an eligible auditor, an accountant shall:629 |
|---|
| 710 | + | (i) Register with the department;630 |
|---|
| 711 | + | (ii) Maintain its registration with the Georgia State Board of Accountancy;631 |
|---|
| 712 | + | (iii) Agree to and be capable of completing audits related to this Code section in632 |
|---|
| 713 | + | accordance with this Code section and procedures developed by the department;633 |
|---|
| 714 | + | (iv) Successfully complete all training required by the department;634 |
|---|
| 715 | + | (v) Pay to the department a registration fee that the department shall set in an amount635 |
|---|
| 716 | + | that reflects the expenses incurred by the department as a result of this paragraph; and636 |
|---|
| 717 | + | (vi) Post and maintain any bond that the department establishes |
|---|
| 718 | + | may require for each637 |
|---|
| 719 | + | eligible auditor.638 |
|---|
| 720 | + | (C) The Department of Revenue shall decertify an eligible auditor if such auditor:639 |
|---|
| 721 | + | (i) Fails to meet the conditions or comply with the provisions of subparagraph (B) of640 |
|---|
| 722 | + | this paragraph; or641 |
|---|
| 723 | + | (ii) Completes an audit and violates the requirements of subparagraph (E) of642 |
|---|
| 724 | + | paragraph (4) of this subsection.643 |
|---|
| 725 | + | (D) The Department of Revenue may decertify an eligible auditor if such auditor fails644 |
|---|
| 726 | + | to complete an audit in accordance with subparagraph (A), (B), (C), (D), (F), or (G) of645 |
|---|
| 727 | + | paragraph (4) of this subsection or meets any other grounds for decertification as646 |
|---|
| 728 | + | provided in regulations promulgated by the department.647 |
|---|
| 729 | + | (4) Each audit shall:648 |
|---|
| 730 | + | (A) Be completed in accordance with this Code section and procedures developed by649 |
|---|
| 731 | + | the department;650 |
|---|
| 732 | + | (B) Utilize sampling methods that the department may adopt;651 |
|---|
| 733 | + | H. B. 1180 (SUB) |
|---|
| 734 | + | - 25 - 24 LC 50 0785S |
|---|
| 735 | + | (C) Follow regulations that shall be published by the department regarding |
|---|
| 736 | + | 652 |
|---|
| 737 | + | expenditures incurred with related persons or related members as such terms are653 |
|---|
| 738 | + | defined in Code Section 48-7-28.3;654 |
|---|
| 739 | + | (D) Verify each reported expenditure that is included in the audit and identify and655 |
|---|
| 740 | + | exclude each such expenditure that does not fully meet the conditions of this Code656 |
|---|
| 741 | + | section;657 |
|---|
| 742 | + | (E) Exclude any expenditure not submitted with or that was incurred after the658 |
|---|
| 743 | + | application required by subsection (h.1) |
|---|
| 744 | + | (g) of this Code section was submitted;659 |
|---|
| 745 | + | (F) Not be performed by an eligible accounting entity that is not determined to be660 |
|---|
| 746 | + | independent as provided in the American Institute of Certified Public Accountants Code661 |
|---|
| 747 | + | of Professional Conduct with respect to the production company or any of its related662 |
|---|
| 748 | + | persons or related members as such terms are defined in Code Section 48-7-28.3 or as663 |
|---|
| 749 | + | otherwise provided by the Department of Revenue; and664 |
|---|
| 750 | + | (G) Be submitted to the department which shall review the audit, make adjustments as665 |
|---|
| 751 | + | necessary, and issue a final certification to the production company.666 |
|---|
| 752 | + | (5) The Department of Revenue shall:667 |
|---|
| 753 | + | (A) Promulgate rules and regulations and implement this subsection;668 |
|---|
| 754 | + | (B) Publish and regularly update a list of all eligible auditors that a production669 |
|---|
| 755 | + | company may hire to conduct the audit required by this subsection;670 |
|---|
| 756 | + | (C) Publish on its public website the application for certification of eligible auditors671 |
|---|
| 757 | + | as well as all requirements related to certification and conducting an audit pursuant to672 |
|---|
| 758 | + | this subsection;673 |
|---|
| 759 | + | (D) Publish the registration fee required by division (3)(B)(v) of this subsection and674 |
|---|
| 760 | + | any bond required pursuant to division (3)(B)(vi) of this subsection;675 |
|---|
| 761 | + | (E) Determine whether a sampling method shall be used for the audits required by this676 |
|---|
| 762 | + | subsection, the appropriate sample method and size, and if a sampling method is used,677 |
|---|
| 763 | + | ensure that it accurately captures a truly representative sample of all ineligible678 |
|---|
| 764 | + | H. B. 1180 (SUB) |
|---|
| 765 | + | - 26 - 24 LC 50 0785S |
|---|
| 766 | + | expenditures across all submitted expenditures and projects the type, rate, and amount |
|---|
| 767 | + | 679 |
|---|
| 768 | + | of ineligible expenditures across all submitted expenditures;680 |
|---|
| 769 | + | (F) Perform the audit of expenditures when, due to confidentiality of information, the681 |
|---|
| 770 | + | eligible auditor is unable to access necessary information that the department is able682 |
|---|
| 771 | + | access;683 |
|---|
| 772 | + | (G) Review each audit conducted by an eligible auditor, conduct the portions of the684 |
|---|
| 773 | + | audit described in subparagraph (F) of this paragraph, perform additional auditing as685 |
|---|
| 774 | + | necessary, adjust the value of the tax credit as necessary, finalize the audit, and issue686 |
|---|
| 775 | + | the final certification of the tax credit to the taxpayer; and687 |
|---|
| 776 | + | (H) For an audit that it conducts without an eligible auditor, complete the audit, adjust688 |
|---|
| 777 | + | the value of the tax credit as necessary, and issue the final certification of the tax credit689 |
|---|
| 778 | + | to the taxpayer.690 |
|---|
| 779 | + | (6) The production company applying for a final certification of a tax credit pursuant to691 |
|---|
| 780 | + | this subsection shall agree and be required to reimburse the department for all costs692 |
|---|
| 781 | + | incurred by the performance of a related audit, or any portion thereof, including for693 |
|---|
| 782 | + | review of an audit conducted by an eligible auditor, prior to the issuance of such final694 |
|---|
| 783 | + | certification.695 |
|---|
| 784 | + | (7) The cost of any such audit whether conducted in whole or in part by the department,696 |
|---|
| 785 | + | an eligible auditor, or a combination of the two shall be borne by the production company697 |
|---|
| 786 | + | and shall not be included as an expenditure claimed pursuant to this Code section.698 |
|---|
| 787 | + | (8) This subsection shall not apply to qualified interactive entertainment production |
|---|
| 788 | + | 699 |
|---|
| 789 | + | companies."700 |
|---|
| 790 | + | SECTION 2.701 |
|---|
| 791 | + | Said chapter is further amended by adding a new Code section to read as follows:702 |
|---|
| 792 | + | H. B. 1180 (SUB) |
|---|
| 793 | + | - 27 - 24 LC 50 0785S |
|---|
| 794 | + | "48-7-40.37.703 |
|---|
| 795 | + | (a) This Code section shall be known and may be cited as the 'Georgia Interactive704 |
|---|
| 796 | + | Entertainment Industry Investment Act.'705 |
|---|
| 797 | + | (b) As used in this Code section, the term:706 |
|---|
| 798 | + | (1) 'Affiliates' means those entities that are included in the qualified interactive707 |
|---|
| 799 | + | entertainment production company's affiliated group as defined in Section 1504(a) of the708 |
|---|
| 800 | + | Internal Revenue Code and all other entities that are directly or indirectly owned 50709 |
|---|
| 801 | + | percent or more by members of the affiliated group.710 |
|---|
| 802 | + | (2) 'Base investment' means the aggregate funds actually invested and expended by a711 |
|---|
| 803 | + | qualified interactive entertainment production company as production expenditures712 |
|---|
| 804 | + | incurred in this state that are directly used in a state certified production or productions.713 |
|---|
| 805 | + | (3) 'Game platform' means the electronic delivery system used to launch or play an714 |
|---|
| 806 | + | interactive game.715 |
|---|
| 807 | + | (4) 'Game sequel' means an interactive game which builds upon the theme of a716 |
|---|
| 808 | + | previously released interactive game, is distinguished by a new title, and features717 |
|---|
| 809 | + | objectives or characters that are recognizably different from the original game.718 |
|---|
| 810 | + | (5) 'Multimarket commercial distribution' means paid commercial distribution with719 |
|---|
| 811 | + | media buys which extend to markets outside the State of Georgia.720 |
|---|
| 812 | + | (6) 'Prereleased interactive game' means a new game, the offering of an existing game721 |
|---|
| 813 | + | on a new game platform, or a game sequel that is in the developmental stages of722 |
|---|
| 814 | + | production, which may be available to individuals for testing purposes but is not723 |
|---|
| 815 | + | generally made available or distributed to consumers or to the general public.724 |
|---|
| 816 | + | (7) 'Production expenditures' means:725 |
|---|
| 817 | + | (A) Preproduction, production, and postproduction expenditures incurred in this state726 |
|---|
| 818 | + | that are directly used in a qualified production activity, including, but not limited to, the727 |
|---|
| 819 | + | following: set construction and operation; wardrobes, make-up, accessories, and related728 |
|---|
| 820 | + | services; costs associated with photography and sound synchronization; expenditures729 |
|---|
| 821 | + | H. B. 1180 (SUB) |
|---|
| 822 | + | - 28 - 24 LC 50 0785S |
|---|
| 823 | + | excluding license fees incurred with Georgia companies for sound recordings and730 |
|---|
| 824 | + | musical compositions; lighting and related services and materials; editing and related731 |
|---|
| 825 | + | services; rental of facilities and equipment; leasing of vehicles; costs of food and732 |
|---|
| 826 | + | lodging; digital or tape editing; sound mixing; computer graphics services; special733 |
|---|
| 827 | + | effects services; animation services; total aggregate payroll; airfare, if purchased734 |
|---|
| 828 | + | through a Georgia travel agency or travel company; insurance costs and bonding, if735 |
|---|
| 829 | + | purchased through a Georgia insurance agency; and other direct costs of producing the736 |
|---|
| 830 | + | project in accordance with generally accepted interactive entertainment industry737 |
|---|
| 831 | + | practices.738 |
|---|
| 832 | + | (B) Such term shall not include:739 |
|---|
| 833 | + | (i) Postproduction expenditures for footage shot outside this state, marketing, story740 |
|---|
| 834 | + | rights, or distribution;741 |
|---|
| 835 | + | (ii) Any expenditure for work or services not conducted or rendered in Georgia. 742 |
|---|
| 836 | + | Expenditures for services not performed at the filming site shall only qualify if the743 |
|---|
| 837 | + | vendor is a Georgia vendor. Expenditures for services conducted or rendered both in744 |
|---|
| 838 | + | and outside this state shall only qualify to the extent the service is conducted or745 |
|---|
| 839 | + | rendered in Georgia;746 |
|---|
| 840 | + | (iii) Expenditures for goods that were not purchased or rented or leased in this state747 |
|---|
| 841 | + | from a Georgia vendor. Expenditures for goods shall only qualify to the extent such748 |
|---|
| 842 | + | goods are used in this state. A vendor that acts as a conduit to enable purchases or749 |
|---|
| 843 | + | rentals to qualify that would not otherwise qualify shall not be considered a Georgia750 |
|---|
| 844 | + | vendor with respect to such purchases, rentals, or leases; or751 |
|---|
| 845 | + | (iv) Any transaction subject to taxation imposed by Chapter 8 or 13 of this title for752 |
|---|
| 846 | + | which taxes have not been demonstrably paid.753 |
|---|
| 847 | + | (C) Such term includes payments to a loan-out company by a qualified interactive754 |
|---|
| 848 | + | entertainment production company that has met its withholding tax obligations as755 |
|---|
| 849 | + | provided in this paragraph. The qualified interactive entertainment production756 |
|---|
| 850 | + | H. B. 1180 (SUB) |
|---|
| 851 | + | - 29 - 24 LC 50 0785S |
|---|
| 852 | + | company shall withhold Georgia income tax at the rate imposed by subsection (a) of757 |
|---|
| 853 | + | Code Section 48-7-21 on all payments to loan-out companies for services performed758 |
|---|
| 854 | + | in Georgia. Any amounts so withheld shall be deemed to have been withheld by the759 |
|---|
| 855 | + | loan-out company on wages paid to its employees for services performed in Georgia760 |
|---|
| 856 | + | pursuant to Article 5 of this chapter notwithstanding the exclusion provided in761 |
|---|
| 857 | + | subparagraph (K) of paragraph (10) of Code Section 48-7-100. The amounts so762 |
|---|
| 858 | + | withheld shall be allocated to the loan-out company's employees based on the payments763 |
|---|
| 859 | + | made to the loan-out company's employees for services performed in Georgia. For764 |
|---|
| 860 | + | purposes of this chapter, loan-out company nonresident employees performing services765 |
|---|
| 861 | + | in Georgia shall be considered taxable nonresidents and the loan-out company shall be766 |
|---|
| 862 | + | subject to income taxation in the taxable year in which the loan-out company's767 |
|---|
| 863 | + | employees perform services in Georgia, notwithstanding any other provisions in this768 |
|---|
| 864 | + | chapter. Such withholding liability shall be subject to penalties and interest in the same769 |
|---|
| 865 | + | manner as the employee withholding taxes imposed by Article 5 of this chapter, and the770 |
|---|
| 866 | + | commissioner shall provide by regulation the manner in which such liability shall be771 |
|---|
| 867 | + | assessed and collected.772 |
|---|
| 868 | + | (8) 'Qualified Georgia promotion' means a qualified promotion of this state approved by773 |
|---|
| 869 | + | the Department of Economic Development consisting of a qualified interactive game774 |
|---|
| 870 | + | which includes a 15 second long Georgia advertisement in units sold and embedded in775 |
|---|
| 871 | + | online promotions.776 |
|---|
| 872 | + | (9) 'Qualified interactive entertainment production company' means a company that:777 |
|---|
| 873 | + | (A) Maintains a business location physically located in this state;778 |
|---|
| 874 | + | (B) Has a total aggregate payroll of $250,000.00 or more for employees working779 |
|---|
| 875 | + | within the state in the taxable year the qualified interactive entertainment production780 |
|---|
| 876 | + | company claims the tax credits;781 |
|---|
| 877 | + | (C) Has gross income of less than $100 million for the taxable year; and782 |
|---|
| 878 | + | H. B. 1180 (SUB) |
|---|
| 879 | + | - 30 - 24 LC 50 0785S |
|---|
| 880 | + | (D) Is primarily engaged in qualified production activities related to interactive783 |
|---|
| 881 | + | entertainment.784 |
|---|
| 882 | + | Such term shall not mean or include any form of business owned, affiliated, or controlled,785 |
|---|
| 883 | + | in whole or in part, by any company or person which is in default on any tax obligation786 |
|---|
| 884 | + | of the state or a loan made by the state or a loan guaranteed by the state.787 |
|---|
| 885 | + | (10) 'Qualified production activities' means the production of new digital projects788 |
|---|
| 886 | + | produced in this state and approved by the Department of Economic Development as789 |
|---|
| 887 | + | state certified productions, including only the following: interactive entertainment or790 |
|---|
| 888 | + | prereleased interactive games. Such term shall include projects created in this state, in791 |
|---|
| 889 | + | whole or in part, animation, and music fixed on a delivery system which includes without792 |
|---|
| 890 | + | limitation computer disc, laser disc, and any element of the digital domain and which is793 |
|---|
| 891 | + | intended for multimarket commercial distribution via digital platforms designed for the794 |
|---|
| 892 | + | distribution of interactive games. Such term shall not include any project that is not795 |
|---|
| 893 | + | intended for multimarket commercial distribution or any project not originally created in796 |
|---|
| 894 | + | this state.797 |
|---|
| 895 | + | (11) 'Resident' means an individual as designated pursuant to paragraph (10) of Code798 |
|---|
| 896 | + | Section 48-7-1.799 |
|---|
| 897 | + | (12) 'State certified production' means a production engaged in qualified production800 |
|---|
| 898 | + | activities which have been approved by the Department of Economic Development in801 |
|---|
| 899 | + | accordance with regulations promulgated pursuant to this Code section. In the instance802 |
|---|
| 900 | + | of a work for hire in which one qualified interactive entertainment production company803 |
|---|
| 901 | + | hires another qualified interactive entertainment production company to produce a project804 |
|---|
| 902 | + | or contribute elements of a project for pay, the hired company shall be considered a805 |
|---|
| 903 | + | service provider for the hiring company, and the hiring company shall be entitled to the806 |
|---|
| 904 | + | film tax credit.807 |
|---|
| 905 | + | H. B. 1180 (SUB) |
|---|
| 906 | + | - 31 - 24 LC 50 0785S |
|---|
| 907 | + | (13) 'Total aggregate payroll' means the total sum expended by a qualified interactive808 |
|---|
| 908 | + | entertainment production company on salaries paid to employees working within this809 |
|---|
| 909 | + | state in a state certified production or productions. For purposes of this paragraph:810 |
|---|
| 910 | + | (A) With respect to a single employee, the portion of any salary which exceeds811 |
|---|
| 911 | + | $500,000.00 for a single production shall not be included when calculating total812 |
|---|
| 912 | + | aggregate payroll; and813 |
|---|
| 913 | + | (B) All payments to a single employee and any legal entity in which the employee has814 |
|---|
| 914 | + | any direct or indirect ownership interest shall be considered as having been paid to the815 |
|---|
| 915 | + | employee and shall be aggregated regardless of the means of payment or distribution.816 |
|---|
| 916 | + | (c) For any qualified interactive entertainment production company and its affiliates that817 |
|---|
| 917 | + | invest in a state certified production and whose average annual total production818 |
|---|
| 918 | + | expenditures in this state did not exceed $30 million for 2002, 2003, and 2004, there shall819 |
|---|
| 919 | + | be allowed an income tax credit against the tax imposed under this article. The tax credit820 |
|---|
| 920 | + | under this subsection shall be allowed if the base investment in this state equals or exceeds821 |
|---|
| 921 | + | $250,000.00, and shall be calculated as follows:822 |
|---|
| 922 | + | (1) The qualified interactive entertainment production company shall be allowed a tax823 |
|---|
| 923 | + | credit equal to 20 percent of the base investment in this state; and824 |
|---|
| 924 | + | (2)(A) The qualified interactive entertainment production company shall be allowed825 |
|---|
| 925 | + | an additional tax credit equal to 10 percent of such base investment if the qualified826 |
|---|
| 926 | + | production activity includes a qualified Georgia promotion. Such additional tax credit827 |
|---|
| 927 | + | shall be allowed for any qualified production that includes a qualified Georgia828 |
|---|
| 928 | + | promotion upon its release to the general public. In lieu of the inclusion of the Georgia829 |
|---|
| 929 | + | promotional logo, the qualified interactive entertainment production company may830 |
|---|
| 930 | + | offer alternative marketing opportunities to be evaluated by the Department of831 |
|---|
| 931 | + | Economic Development to ensure that they offer equal or greater promotional value to832 |
|---|
| 932 | + | the State of Georgia. The Department of Economic Development shall electronically833 |
|---|
| 933 | + | H. B. 1180 (SUB) |
|---|
| 934 | + | - 32 - 24 LC 50 0785S |
|---|
| 935 | + | certify to the Department of Revenue when the requirements of this paragraph and834 |
|---|
| 936 | + | paragraph (2) of subsection (d) of this Code section have been met.835 |
|---|
| 937 | + | (B) The Department of Economic Development shall prepare an annual report detailing836 |
|---|
| 938 | + | the marketing opportunities it has approved under the provisions of subparagraph (A)837 |
|---|
| 939 | + | of this paragraph. The report shall include, but not be limited to:838 |
|---|
| 940 | + | (i) The goals and strategy behind each marketing opportunity approved pursuant to839 |
|---|
| 941 | + | the provisions of subparagraph (A) of this paragraph;840 |
|---|
| 942 | + | (ii) The names of all qualified interactive entertainment production companies841 |
|---|
| 943 | + | approved by the Department of Economic Development to provide alternative842 |
|---|
| 944 | + | marketing opportunities;843 |
|---|
| 945 | + | (iii) The estimated value to the state of each approved alternative marketing844 |
|---|
| 946 | + | opportunity compared to the estimated value of the Georgia promotional logo; and845 |
|---|
| 947 | + | (iv) The names of all qualified interactive entertainment production companies who846 |
|---|
| 948 | + | chose to include the Georgia promotional logo in their final production instead of847 |
|---|
| 949 | + | offering the state an alternative marketing proposal.848 |
|---|
| 950 | + | The report required under this paragraph shall be completed no later than January 1 of849 |
|---|
| 951 | + | each year and presented to each member of the House Committee on Ways and Means,850 |
|---|
| 952 | + | the Senate Finance Committee, the Senate Economic Development and Tourism851 |
|---|
| 953 | + | Committee, the House Committee on Economic Development and Tourism, and the852 |
|---|
| 954 | + | Governor.853 |
|---|
| 955 | + | (d) For any qualified interactive entertainment production company and its affiliates that854 |
|---|
| 956 | + | invest in a state certified production and whose average annual total production855 |
|---|
| 957 | + | expenditures in this state exceeded $30 million for 2002, 2003, and 2004, there shall be856 |
|---|
| 958 | + | allowed an income tax credit against the tax imposed under this article. For purposes of857 |
|---|
| 959 | + | this subsection, the excess base investment in this state is computed by taking the current858 |
|---|
| 960 | + | year production expenditures in a state certified production and subtracting the average of859 |
|---|
| 961 | + | H. B. 1180 (SUB) |
|---|
| 962 | + | - 33 - 24 LC 50 0785S |
|---|
| 963 | + | the annual total production expenditures for 2002, 2003, and 2004. The tax credit shall be860 |
|---|
| 964 | + | calculated as follows:861 |
|---|
| 965 | + | (1) If the excess base investment in this state equals or exceeds $250,000.00, the862 |
|---|
| 966 | + | qualified interactive entertainment production company and its affiliates shall be allowed863 |
|---|
| 967 | + | a tax credit of 20 percent of such excess base investment; and864 |
|---|
| 968 | + | (2)(A) The qualified interactive entertainment production company and its affiliates865 |
|---|
| 969 | + | shall be allowed an additional tax credit equal to 10 percent of the excess base866 |
|---|
| 970 | + | investment if the qualified production activities include a qualified Georgia promotion. 867 |
|---|
| 971 | + | Such additional tax credit shall be allowed for any qualified production that includes868 |
|---|
| 972 | + | a qualified Georgia promotion upon its release to the general public. In lieu of the869 |
|---|
| 973 | + | inclusion of the Georgia promotional logo, the qualified interactive entertainment870 |
|---|
| 974 | + | production company may offer marketing opportunities to be evaluated by the871 |
|---|
| 975 | + | Department of Economic Development to ensure that they offer equal or greater872 |
|---|
| 976 | + | promotional value to the State of Georgia.873 |
|---|
| 977 | + | (B) The Department of Economic Development shall prepare an annual report detailing874 |
|---|
| 978 | + | the marketing opportunities it has approved under the provisions of subparagraph (A)875 |
|---|
| 979 | + | of this paragraph. The report shall include, but not be limited to:876 |
|---|
| 980 | + | (i) The goals and strategy behind each marketing opportunity approved pursuant to877 |
|---|
| 981 | + | the provisions of subparagraph (A) of this paragraph;878 |
|---|
| 982 | + | (ii) The names of all production companies approved by the Department of Economic879 |
|---|
| 983 | + | Development to provide alternative marketing opportunities;880 |
|---|
| 984 | + | (iii) The estimated value to the state of each approved alternative marketing881 |
|---|
| 985 | + | opportunity compared to the estimated value of the Georgia promotional logo; and882 |
|---|
| 986 | + | (iv) The names of all production companies who chose to include the Georgia883 |
|---|
| 987 | + | promotional logo in their final production instead of offering the state an alternative884 |
|---|
| 988 | + | marketing proposal.885 |
|---|
| 989 | + | H. B. 1180 (SUB) |
|---|
| 990 | + | - 34 - 24 LC 50 0785S |
|---|
| 991 | + | The report required under this paragraph shall be completed no later than January 1 of886 |
|---|
| 992 | + | each year and presented to each member of the House Committee on Ways and Means,887 |
|---|
| 993 | + | the Senate Finance Committee, the Senate Economic Development and Tourism888 |
|---|
| 994 | + | Committee, the House Committee on Economic Development and Tourism, and the889 |
|---|
| 995 | + | Governor.890 |
|---|
| 996 | + | (e)(1) In no event shall the aggregate amount of tax credits allowed under this Code891 |
|---|
| 997 | + | section for qualified interactive entertainment production companies and affiliates exceed892 |
|---|
| 998 | + | $12.5 million for each taxable year.893 |
|---|
| 999 | + | (2) Qualified interactive entertainment production companies are eligible for tax credits894 |
|---|
| 1000 | + | for prereleased interactive game production; provided, however, that such credits shall895 |
|---|
| 1001 | + | not be available for a period which exceeds three years.896 |
|---|
| 1002 | + | (3) The maximum allowable credit claimed for any qualified interactive entertainment897 |
|---|
| 1003 | + | production company and its affiliates shall not exceed $1.5 million in any single year.898 |
|---|
| 1004 | + | (4) Qualified interactive entertainment production companies seeking to claim a tax899 |
|---|
| 1005 | + | credit under the provisions of this Code section shall submit an application to the900 |
|---|
| 1006 | + | commissioner for preapproval of such tax credit. The commissioner shall preapprove the901 |
|---|
| 1007 | + | tax credits based on the order in which properly completed applications were submitted. 902 |
|---|
| 1008 | + | In the event that two or more applications were submitted on the same day and the903 |
|---|
| 1009 | + | amount of funds available will not be sufficient to fully fund the tax credits requested, the904 |
|---|
| 1010 | + | commissioner shall prorate the available funds between or among the applicants.905 |
|---|
| 1011 | + | (5) No qualified interactive entertainment production company shall be allowed to claim906 |
|---|
| 1012 | + | an amount of tax credits under this Code section for any single year in excess of its total907 |
|---|
| 1013 | + | aggregate payroll expended to employees working within this state for the calendar year908 |
|---|
| 1014 | + | that the qualified interactive entertainment production company claims the tax credits. 909 |
|---|
| 1015 | + | Any amount in excess of such limit shall not be eligible for carry forward to the910 |
|---|
| 1016 | + | succeeding years' tax liability, nor shall such excess amount be eligible for use against911 |
|---|
| 1017 | + | the qualified interactive entertainment production company's quarterly or monthly912 |
|---|
| 1018 | + | H. B. 1180 (SUB) |
|---|
| 1019 | + | - 35 - 24 LC 50 0785S |
|---|
| 1020 | + | payment under Code Section 48-7-103, nor shall such excess amount be assigned, sold,913 |
|---|
| 1021 | + | or transferred to any other taxpayer.914 |
|---|
| 1022 | + | (6) Before the Department of Economic Development issues its approval to the qualified915 |
|---|
| 1023 | + | interactive entertainment production company for the qualified production activities, the916 |
|---|
| 1024 | + | qualified interactive entertainment production company shall certify to the department917 |
|---|
| 1025 | + | that:918 |
|---|
| 1026 | + | (A) The qualified interactive entertainment production company maintains a business919 |
|---|
| 1027 | + | location physically located in this state; and920 |
|---|
| 1028 | + | (B) The qualified interactive entertainment production company had expended a total921 |
|---|
| 1029 | + | aggregate payroll of $250,000.00 or more for employees working within this state922 |
|---|
| 1030 | + | during the taxable year of the qualified interactive entertainment production company.923 |
|---|
| 1031 | + | The department shall issue a certification that the qualified interactive entertainment924 |
|---|
| 1032 | + | production company meets the requirements of this paragraph. The qualified interactive925 |
|---|
| 1033 | + | entertainment production company shall provide such certification to the Department of926 |
|---|
| 1034 | + | Economic Development. The Department of Economic Development shall not issue its927 |
|---|
| 1035 | + | approval until it receives such certification.928 |
|---|
| 1036 | + | (7)(A) The qualified interactive entertainment production company shall report to the929 |
|---|
| 1037 | + | Department of Revenue on its Georgia income tax return the monthly average number930 |
|---|
| 1038 | + | of full-time employees subject to Georgia income tax withholding for the taxable year931 |
|---|
| 1039 | + | as provided in subparagraph (B) of this paragraph. For purposes of this paragraph the932 |
|---|
| 1040 | + | term, 'full-time employee' means a person who performs a job that requires a minimum933 |
|---|
| 1041 | + | of 35 hours a week and receives compensation at or above the average wage earned in934 |
|---|
| 1042 | + | the county with the lowest average wage earned in this state as reported in the most935 |
|---|
| 1043 | + | recently available annual issue of the Georgia Employment and Wages Averages936 |
|---|
| 1044 | + | Report of the Department of Labor.937 |
|---|
| 1045 | + | (B) The qualified interactive entertainment production company shall report such938 |
|---|
| 1046 | + | number for each respective taxable year.939 |
|---|
| 1047 | + | H. B. 1180 (SUB) |
|---|
| 1048 | + | - 36 - 24 LC 50 0785S |
|---|
| 1049 | + | (C) Notwithstanding Code Sections 48-2-15, 48-7-60, and 48-7-61, for such taxable940 |
|---|
| 1050 | + | years, the commissioner shall report yearly to the House Committee on Ways and941 |
|---|
| 1051 | + | Means and the Senate Finance Committee. Such report shall include the name, tax year942 |
|---|
| 1052 | + | beginning, and monthly average number of full-time employees for each qualified943 |
|---|
| 1053 | + | interactive entertainment production company and shall be submitted by June 30 each944 |
|---|
| 1054 | + | year.945 |
|---|
| 1055 | + | (f)(1) If the amount of tax credits allowed under this Code section exceeds the qualified946 |
|---|
| 1056 | + | interactive entertainment production company's liability for taxes owed under this article947 |
|---|
| 1057 | + | in a taxable year, the excess may be taken as a credit against such qualified interactive948 |
|---|
| 1058 | + | entertainment production company's quarterly or monthly payment under Code Section949 |
|---|
| 1059 | + | 48-7-103. Each employee whose employer receives credit against such qualified950 |
|---|
| 1060 | + | interactive entertainment production company's quarterly or monthly payment under951 |
|---|
| 1061 | + | Code Section 48-7-103 shall receive credit against his or her income tax liability under952 |
|---|
| 1062 | + | Code Section 48-7-20 for the corresponding taxable year for the full amount which would953 |
|---|
| 1063 | + | be credited against such liability prior to the application of the credit provided for in this954 |
|---|
| 1064 | + | subsection. Credits against quarterly or monthly payments under Code Section 48-7-103955 |
|---|
| 1065 | + | and credits against liability under Code Section 48-7-20 established by this subsection956 |
|---|
| 1066 | + | shall not constitute income to the qualified interactive entertainment production company.957 |
|---|
| 1067 | + | (2) If a qualified interactive entertainment production company and its affiliates claim958 |
|---|
| 1068 | + | the credit authorized under Code Section 48-7-40, 48-7-40.1, 48-7-40.17, or 48-7-40.18,959 |
|---|
| 1069 | + | then the qualified interactive entertainment production company and its affiliates shall960 |
|---|
| 1070 | + | only be allowed to claim the credit authorized under this Code section to the extent that961 |
|---|
| 1071 | + | the Georgia resident employees included in the credit calculation authorized under this962 |
|---|
| 1072 | + | Code section and taken by the qualified interactive entertainment production company963 |
|---|
| 1073 | + | and its affiliates on such tax return under this Code section have been permanently964 |
|---|
| 1074 | + | excluded from the credit authorized under Code Section 48-7-40, 48-7-40.1, 48-7-40.17,965 |
|---|
| 1075 | + | or 48-7-40.18.966 |
|---|
| 1076 | + | H. B. 1180 (SUB) |
|---|
| 1077 | + | - 37 - 24 LC 50 0785S |
|---|
| 1078 | + | (g) Any tax credits with respect to a state certified production earned by a qualified967 |
|---|
| 1079 | + | interactive entertainment production company and previously claimed but not used by such968 |
|---|
| 1080 | + | qualified interactive entertainment production company against its income tax may be969 |
|---|
| 1081 | + | transferred or sold in whole or in part by such qualified interactive entertainment970 |
|---|
| 1082 | + | production company to another Georgia taxpayer, subject to the following conditions:971 |
|---|
| 1083 | + | (1) Such qualified interactive entertainment production company may make only a single972 |
|---|
| 1084 | + | transfer or sale of tax credits earned in a taxable year; provided, however, that the transfer973 |
|---|
| 1085 | + | or sale may involve one or more transferees;974 |
|---|
| 1086 | + | (2) Such qualified interactive entertainment production company shall submit to the975 |
|---|
| 1087 | + | Department of Economic Development and to the Department of Revenue a written976 |
|---|
| 1088 | + | notification of any transfer or sale of tax credits within 30 days after the transfer or sale977 |
|---|
| 1089 | + | of such tax credits. The notification shall include such qualified interactive entertainment978 |
|---|
| 1090 | + | production company's tax credit balance prior to transfer, the credit certificate number,979 |
|---|
| 1091 | + | the remaining balance after transfer, all tax identification numbers for each transferee, the980 |
|---|
| 1092 | + | date of transfer, the amount transferred, and any other information required by the981 |
|---|
| 1093 | + | Department of Economic Development or the Department of Revenue;982 |
|---|
| 1094 | + | (3) Failure to comply with this subsection shall result in the disallowance of the tax983 |
|---|
| 1095 | + | credit until the qualified interactive entertainment production company is in full984 |
|---|
| 1096 | + | compliance;985 |
|---|
| 1097 | + | (4) The transfer or sale of this tax credit does not extend the time in which such tax credit986 |
|---|
| 1098 | + | can be used. The carry-forward period for a tax credit that is transferred or sold shall987 |
|---|
| 1099 | + | begin on the date on which the tax credit was originally earned;988 |
|---|
| 1100 | + | (5) A transferee shall have only such rights to claim and use the tax credit that were989 |
|---|
| 1101 | + | available to such qualified interactive entertainment production company at the time of990 |
|---|
| 1102 | + | the transfer, except for the use of the credit in paragraph (1) of subsection (f) of this Code991 |
|---|
| 1103 | + | section. To the extent that such qualified interactive entertainment production company992 |
|---|
| 1104 | + | did not have rights to claim or use the tax credit at the time of the transfer, the993 |
|---|
| 1105 | + | H. B. 1180 (SUB) |
|---|
| 1106 | + | - 38 - 24 LC 50 0785S |
|---|
| 1107 | + | Department of Revenue shall either disallow the tax credit claimed by the transferee or994 |
|---|
| 1108 | + | recapture the tax credit from the transferee. The transferee's recourse is against such995 |
|---|
| 1109 | + | qualified interactive entertainment production company; and996 |
|---|
| 1110 | + | (6) The transferee shall acquire the tax credits in this Code section for a minimum of 60997 |
|---|
| 1111 | + | percent of the amount of the tax credits so transferred.998 |
|---|
| 1112 | + | (h) The credit granted under this Code section shall be subject to the following conditions999 |
|---|
| 1113 | + | and limitations:1000 |
|---|
| 1114 | + | (1) The credit may be taken beginning with the taxable year in which the qualified1001 |
|---|
| 1115 | + | interactive entertainment production company has met the investment requirement. For1002 |
|---|
| 1116 | + | each year in which such qualified interactive entertainment production company either1003 |
|---|
| 1117 | + | claims or transfers the credit, the qualified interactive entertainment production company1004 |
|---|
| 1118 | + | shall attach a schedule to the qualified interactive entertainment production company's1005 |
|---|
| 1119 | + | Georgia income tax return which shall set forth the following information, as a minimum:1006 |
|---|
| 1120 | + | (A) A description of the qualified production activities, along with the certification1007 |
|---|
| 1121 | + | from the Department of Economic Development;1008 |
|---|
| 1122 | + | (B) A detailed listing of the employee names, social security numbers, and Georgia1009 |
|---|
| 1123 | + | wages when salaries are included in the base investment;1010 |
|---|
| 1124 | + | (C) The amount of tax credit claimed for the taxable year;1011 |
|---|
| 1125 | + | (D) Any tax credit previously taken by the qualified interactive entertainment1012 |
|---|
| 1126 | + | production company against Georgia income tax liabilities or the qualified interactive1013 |
|---|
| 1127 | + | entertainment production company's quarterly or monthly payments under Code Section1014 |
|---|
| 1128 | + | 48-7-103;1015 |
|---|
| 1129 | + | (E) The amount of tax credit carried over from prior years;1016 |
|---|
| 1130 | + | (F) The amount of tax credit utilized by the qualified interactive entertainment1017 |
|---|
| 1131 | + | production company in the current taxable year; and1018 |
|---|
| 1132 | + | (G) The amount of tax credit to be carried over to subsequent tax years;1019 |
|---|
| 1133 | + | H. B. 1180 (SUB) |
|---|
| 1134 | + | - 39 - 24 LC 50 0785S |
|---|
| 1135 | + | (2) In the initial year in which a qualified interactive entertainment production company1020 |
|---|
| 1136 | + | claims the credit granted in this Code section, the qualified interactive entertainment1021 |
|---|
| 1137 | + | production company shall include in the description of the qualified production activities1022 |
|---|
| 1138 | + | required by subparagraph (A) of paragraph (1) of this subsection information which1023 |
|---|
| 1139 | + | demonstrates that the activities included in the base investment or excess base investment1024 |
|---|
| 1140 | + | equal or exceed $250,000.00; and1025 |
|---|
| 1141 | + | (3) In no event shall the amount of the tax credit under this Code section for a taxable1026 |
|---|
| 1142 | + | year exceed the qualified interactive entertainment production company's income tax1027 |
|---|
| 1143 | + | liability. Any unused credit amount shall be allowed to be carried forward for five years1028 |
|---|
| 1144 | + | from the close of the taxable year in which the investment occurred. No such credit shall1029 |
|---|
| 1145 | + | be allowed the qualified interactive entertainment production company against prior1030 |
|---|
| 1146 | + | years' tax liability.1031 |
|---|
| 1147 | + | (i)(1) The Department of Economic Development shall:1032 |
|---|
| 1148 | + | (A) Certify each production that qualifies for the tax credits authorized under this Code1033 |
|---|
| 1149 | + | section;1034 |
|---|
| 1150 | + | (B) Submit such certifications to the commissioner; and1035 |
|---|
| 1151 | + | (C) Promulgate rules and regulations as are necessary to implement this subsection.1036 |
|---|
| 1152 | + | (2) The Department of Economic Development may charge reasonable fees associated1037 |
|---|
| 1153 | + | with the certification process established pursuant to this paragraph.1038 |
|---|
| 1154 | + | (j) The commissioner shall promulgate such rules and regulations as are necessary to1039 |
|---|
| 1155 | + | implement and administer this Code section.1040 |
|---|
| 1156 | + | (k) No qualified interactive entertainment production company shall be allowed a credit1041 |
|---|
| 1157 | + | under this Code section and Code Section 48-7-40.26 in the same year."1042 |
|---|
| 1158 | + | SECTION 3.1043 |
|---|
| 1159 | + | This Act shall become effective on January 1, 2026, and shall be applicable to taxable years1044 |
|---|
| 1160 | + | beginning on or after such date.1045 |
|---|
| 1161 | + | H. B. 1180 (SUB) |
|---|
| 1162 | + | - 40 - 24 LC 50 0785S |
|---|
| 1163 | + | SECTION 4. |
|---|
| 1164 | + | 1046 |
|---|
| 1165 | + | All laws and parts of laws in conflict with this Act are repealed.1047 |
|---|
| 1166 | + | H. B. 1180 (SUB) |
|---|
| 1167 | + | - 41 - |
|---|