My wife completely hates The Walking Dead. She asks me on a regular basis “How can you watch this stuff?” Then she makes the sound of a zombie…she has it down pretty good. I tell her that I am just trying to support the economy of Georgia and doing my part 60 minutes at a time.
If you haven’t noticed, in most recent years, the amount of television and movies being filmed in Georgia has increased dramatically. I suppose one would think it is due to the great weather, the geography, or even the city of Atlanta itself. All of these would be great reasons; however, the real reason is the tax incentive that is given to the studios by the great state of Georgia. Now don’t get me wrong, not only is it great for the folks who provide the resources to make these films happen, but we as Georgians can participate as well.
By now we are all aware of the Tax Cuts and Jobs Act which has been passed. Since the TCJA was passed, I have been asked numerous times, “what does this mean for state tax credits?” The credit that I have used the most is the Georgia Film credit. Film, television, and digital entertainment tax credits can get upwards of 20%-30% creating significant cost savings for companies producing these media outlets. The real question is, what does it mean to you, the tax payer?
When a studio or production company does not use all of their tax credits they are able to sell them on the open market to Georgia income tax payers. By buying these credits from the studio or production company, you the tax payer, are able to create a tax arbitrage or in essence pay less in state income tax. It doesn’t matter if you are an individual, a couple, or even an entity, you can buy these credits. Not only that, if you can find the film credits, they can be retroactive, meaning you can get 2016 or maybe even 2015 credits and file a corrected return for the respective years.
The normal pricing for buying tax credits runs between 90-92 cents on the dollar. Here is an example of how the state film tax credit would work:
Couple Married filing jointly has Georgia state income tax due to the tune of $30,000. If the current state film tax credit was selling for 90 cents, this client could write a check for $27,000, buy the credits, staple a form to their tax return, and they would get a refund of $30,000. In it’s simplest form, the client saved $3,000 in income tax. You will have to wait a bit for the refund, obviously, but who can’t use an extra $3,000?
Next time you are sitting with your CPA or tax preparer, ask them to help you find a place to purchase Georgia state film credits. Also, next time your spouse is upset with you for watching The Walking Dead, just tell them you are doing your part to support the economy.
Kurt has been in the financial services industry for over 15 years. He previously owned 4 companies in the Chicago area that primarily helped financial advisors with marketing and financial planning support. He currently serves as the primary Investment Advisor Representative at Arseneau Advisory Group.
Kurt has been featured in publications with ABC, CBS, FOX, and NBC to name a few. Recently, Kurt became one of the few Asset Lock Equipped Advisors in the country. Asset Lock is a proprietary technology tool used to monitor a person’s 401k, TSP, 403b, IRA, or brokerage account. Arseneau Advisory was built on being Holistic, Unbiased, and a client-first company.
Kurt and his wife Brynn (currently the CFO of Arseneau Advisory Group) live in Cumming with their 3 daughters. In their spare time, they volunteer at church, love to travel and spend time with family and friends.
Disclosure: Advisory services offer through Wealth Watch Advisors, LLC, a SEC registered investment adviser. Insurance services offered through Arseneau Advisory Group. Wealth Watch Advisors, LLC and Arseneau Advisory Group are not affiliated. The above article is not intended for tax advise and it is recommended that you speak with a tax professional before making any decisions. Wealth Watch Advisors, LLC and Arseneau Advisory Group are not a CPA and do not provide tax advice.