
GENA HAMMOND
On Monday, May 12, 2008 Governor Sonny Perdue signed new legislation boosting state incentives by as much as 30% for the entertainment industry. This sounded like great News, which led me to reading more of the details. According to the Government website, the new legislation is designed to encourage entertainment industry productions in Georgia. The signing ceremony took place at the studios of Turner Broadcasting System, Inc. (TBS, Inc.), where the Governor was joined by Phil Kent, chairman and CEO of TBS, Inc., and over 100 attendees including legislators, industry leaders and members of the entertainment industry. "We know that our excellent talent base and outstanding locations make Georgia a very desirable place to film," said Governor Sonny Perdue. "This legislation puts in place the economic cornerstone that will encourage producers to convert that desire into action." "We're proud of this legislation; alot of the credit goes to Governor Perdue for setting up the film commission," said Rep. Butch Parrish, a sponsor of the legislation. "I think this bill will jump start the Georgia film industry."
Really? How, how I wondered?
The Truth about the incentives
According to a government press release of Monday, May 12, 2008, "movies were first produced in Georgia as early as 1912, and have continued without interruption during every decade since then. Georgia has been investing in the entertainment industry for over 35 years. Since the inception of the Georgia Film Commission in1973, more than 575 major motion pictures, independent films, television series and pilots, and TV movies have filmed on location in the state. As a result, over $5 billion has been generated for the state's economy. This could be averaged as $142M per year. Mean while, Georgia's music industry continues to thrive with an economic impact of $1.97 billion just in 2007. Why the difference? Because the music industry has the resourses nessecary to operate a "real" industry. And with the money and fame they acquired in the music industry, they become "cash cows" for Hollywood to "pimp" in their movie industry.
What is this incentive worth to local producers?The foundation of the new incentive is a 20% investment tax credit to production companies that spend a minimum of $500,000 in the state on qualified production and post production expenditures in a single year. This may be through a single project or multiple projects. The 20% credit applies to both residential and out-of-town hires with a salary cap of $500,000 per person, per production. It provides an additional 10% tax credit if a production company includes a Georgia promotional logo in the finished feature film, TV series, music video or video game project. These tax credits apply to the company's Georgia tax liability. Should the company have limited or no Georgia tax liability, then the credit 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 animation, interactive
entertainment and video game development. Then I asked myself, how many local movie producers have a budget of up to $5,000 per movie?
Who gets the bacon?
Well to start with, the signing ceremony took place at the studios of Turner Broadcasting System, Inc. (TBS, Inc.), where the Governor was joined by Phil Kent, chairman and CEO of TBS, Inc. Phil Kent is also responsible for TBS, TNT, Turner Classic Movies, Court TV; Cartoon Network, Adult Swim, Boomerang, GameTap and Super Deluxe; and CNN. TBS is owned by TimeWarner which also owns Warner Brothers, New Line Cinema, Castle Rock Entertainment among others. So with the selection of the venue, which I believe is not a government office is quite obvious.
Who waits for the bones?
They say the patient dog eats the fattest bones. In this case, the patient dogs are our local, independent producers, and most of them don't even get the bones. In most cases with little or no advertising, no distribution and no publicity from the local media, they get nothing. No immediate or future hope for a career. All they can do is continue wishing and dreaming of Hollywood. And waiting till in most cases the dream just remains "only a dream". Then I woke up from the dream, in my hands was the vision of Lantawood.