New Transferable Income Tax Credits Spur Investment In Local Georgia Entertainment Productions.

By virtue of the 2005 Georgia Entertainment Industry Investment Act, the State of Georgia has encouraged investment opportunities in Georgia-based entertainment productions through the offering of transferable Georgia income tax credits. The net effect is an economic casting call to finance and invest in locally produced traditional media (feature films, television movies/pilots/series, commercials and music videos, as well as new media (multi-media game development, animation and interactive entertainment). In a state already established as an entertainment production center, these latest Georgia incentives stoke an already hot fire.

Follow The Established Local Pipeline For Tax Credit Fund Success. Stateside Capital, LLC is the leading Georgia tax credit finance provider that:

• Has access to network of large corporations, midsize corporations, professional organizations and high net worth individuals
  
• Understands the tax credit market in Georgia and has successfully placed tax credits through branded tax credit funds
  
• Is recognized as instrumental in creating the demand for tax credits in Georgia
  
• Is the only firm based in Georgia selling state tax credit funds for the entertainment industry.
  

Drawing on the experience gained in closing affordable housing tax credit transactions, Stateside Capital offers three ways for entertainment production companies to save money on Georgia productions:

1. We can buy your credits at the completion of production after the State of Georgia has issued its certificate of compliance.
   
2. We can finance your projects in the development process against the value of your tax credits.
   
3. We can broker your credits to other investors.

We Understand Your Special Needs.

Stateside's local experience makes it easy for entertainment production companies to cash in on the new incentives to do production in Georgia. There is no project too big or small to consider. From a $500,000 commercial to a mega million dollar future blockbuster, our Entertainment Finance Specialists are ready to place your tax credits into a variety of viable funds.

Private Label Funds

For large investors, we can develop private label funds that match tax credit flow to annual and geographic needs. These funds can be specially constructed to best meet investors' distinct risk profile requirements.

Institutional Funds

Institutional investors can often have their needs fulfilled through our diversified funds. Managed by Stateside Capital, these funds are created through investment in tax credits generated by the highest quality entertainment production companies. Tax credits from numerous projects are included in these funds to offer a predictable, ongoing stream of credits that can be distributed among various investors.

Individual Funds

For smaller institutions and high net worth individuals, Stateside offers separate funds that allow for smaller minimum investments. With a lower minimum investment threshold, this fund can accommodate the needs of numerous investors.

For more information, call 404.250.4191.

Highlights of the Georgia Entertainment Industry Investment Act.

This new program offers a base tax credit of 9% percent with uplifts based on Georgia job creation, expenditures in Tier 1 and 2 counties and for multiple television projects by a single production company.

The foundation of the Act is a 9% investment tax credit. Production companies that spend a minimum of $500,000 in the state on qualified production and post production expenditures in a single year are eligible for this credit. This includes most materials, services and labor. The 9% credit applies to both residential and out-of-town hires with a salary cap of $500,000 per person per production.

• The Act will award additional tax credits of 3% for all Georgia residents hired by the production. In effect, producers receive a tax credit equal to 12% for all qualified Georgia labor – the base tax credit of 9% plus a bonus of 3% for Georgia hires.
• The Act will award additional tax credits of 3% in addition to the 9% base investment tax credit for expenditures in Tier 1 and 2 Georgia counties. Typically, these underdeveloped counties are outside of metro Atlanta with the exception of Fulton and Clayton counties.
• For companies with multiple television projects that spend in excess of $20 million in qualified expenditures in Georgia within a single year, the Act will award tax credits of 2% in addition to the 9% base investment tax credit.
• Eligible productions include feature films, television movies, pilots or series, commercials, music videos and certain interactive projects.
• Commercials and music videos are eligible for the base tax credit once the production company has spent a minimum of $500,000 on qualified expenditures during a single year. This may be through a single project or multiple projects.
• The tax credits apply to the company's Georgia tax liability. Should the company have limited or no Georgia tax liability, then these credits may be transferred or sold once to one or multiple Georgia-based companies to use against their tax liabilities.
• In addition to feature film and television production, the Act also includes other areas of entertainment industry development including next generation film production, animation, interactive entertainment and game development.
• Productions may also qualify to take advantage of Georgia's sales and use tax exemption, a point-of-purchase sales tax exemption that saves you up to 8% on most purchases and rentals in the state.
• The legislation is retroactive to January 1, 2005.

The above information comes from the Georgia Film,Video & Music Office of the
Georgia Department of Economic Development's website at www.georgia.org/film.
Please contact them at 404-962-4052 or via e-mail at film@georgia.org for more information.