In recent years, film production has undergone substantial changes as a result of the introduction of film tax incentives. The falling dollar has fostered a more competitive atmosphere in United States motion picture production, as overseas locations have become relatively more burdensome for the standard film budget of U.S. Producers, studios, and independent film companies. In addition, ever since 9/11, travelling to foreign nations has developed into a risk management issue for production companies, studios, stars and crew. As such, filming in the U.S. is now a substantial consideration for talent and staff alike, making United States production options more attractive than those overseas. In order to encourage production to stay domestic, many states, 43 to be exact, have passed tax incentives that allow the film industry to produce films at a cheaper cost and consequently stimulate the domestic economy. This practice is advantageous for American workers and producers alike, as it cuts production costs and encourages the employment of domestic labor.

As the cost of film production continues to rise, some states have taken matters into their own hands, issuing tax incentives to the film industry. These film tax incentives are the new backbone of film financing equations, as production costs are soaring and labor expenses are plentiful. In this day and age, no movie budget plan is comprehensive and complete without some consideration for film tax incentive contribution. Although not typically known for their film and television productions, Georgia and North Carolina offer inexpensive alternatives to their Hollywood counterpart. On May 12, 2008 Governor Sonny Perdue signed into law the Georgia Entertainment Industry Investment Act, boosting the state tax credit for qualified production and post-production expenditures by as much as 30 percent. The Georgia Entertainment Industry Investment Act offers a flat tax credit of 20%, based on a minimum investment of $500,000. There is also another nice benefit, an additional 10% Georgia Entertainment Promotion uplift can be earned by including an imbedded animated Georgia logo on projects with Georgia approval. “The magnitude of Georgia’s tax break is one of the best, if not the best in the country,” says  Broderick Johnson, producer of The Blind Side. Tax incentives in Georgia not only help the film industry, but also stimulate economic growth, further enhancing the recovery from the past recession. “Fiscal year 2007, our economic impact from the film industry was about $240 million, and by fiscal year 2010, it was $1.4 billion,” points out Lee Thomas, director of the film division of the Georgia Film, Music and Digital Entertainment Office. “That’s quite a runup.”

Georgia not only offers an ideal tax incentive, but its capital, Atlanta, seems to be the new hotspot outside of California. EUE/ Screen Gems recently purchased a 33- acre film and television production campus, located ideally 5 miles from downtown Atlanta and 6 miles from the country’s busiest airport. In fact, it seems that Atlanta and EUE/ Screen Gems in particular has provided both the film and televison industries with a unique and inexpensive opportunity with high quality production. EUE/ Screen Gems also operates in Wilmington, North Carolina, another tax incentive state that has seen a rise in productions over the past few years. EUE/ Screen Gems owns and operates a 50- acre complex with over 150,000 square feet, two special effect water tanksCompanies are drawn to the many tax credit programs that give North Carolina a promising business environment. North Carolina’s Governor Bev Perdue signed into law two House Bills that positively affected the North Carolina Film incentive. House Bill 1973 creates a single, easy to use 25% film Incentive while eliminating the 15% and Alternative Film credit. It increases the per project cap form $7.5 million to $20 million. The bill also defines employee fringe contributions, including health, pension and welfare, and per diems, stipends, and living expenses all as qualifying expenses. The House Bill 713 eliminates the 6.9% corporate income tax on the incentive taken by a production company, which allows the company to take advantage of a full 25% of qualifying expenses. “This legislation will help grow our $91 million motion picture industry, preserve and create thousands of jobs and increase investments in yet another emerging economic cluster,” Perdue said. “Providing a strong foundation for North Carolina’s film industry is essential as we work to build a strong and sustainable economy through increased diversification.”

For more information, contact:
Susan Dosier, public relations for EUE/Screen Gems
susan@dkcommunicationsgroup.com
704-993-7871 mobile

http://www.screengemsstudios.com/

EUE Screen Gems Studios
1223 23rd Street North, Wilmington, NC 28405
(910) 343-3500

EUE Screen Gems Studios
175 Lakewood Way, Atlanta, GA 30315
(404) 333-6506 ?