Georgia’s 15-year-old film and television production tax incentive program has grown the industry from $135 million in 2007 to over $4 billion last year. With more than 6 million square feet of studio space, Georgia is now the second largest production location after California. But just as that generosity begins to spread to Athens, state legislatures could take it away again.
A panel of state lawmakers is rethinking the tax credits that fueled this growth. At a June 22 event sponsored by Georgia Entertainment News at the downtown music venue The Lewis Room, academics, filmmakers and others from the entertainment industry discussed why the incentive program should be maintained and even expanded to other areas such as audio recording, video games and public arts.
“They have a $4.4 billion film industry. I want a billion dollar audio industry,” said Andrew Ratcliffe, who owns The Lewis Room and audio production school Tweed Recording.
Some lawmakers fear the state will lose $1 billion in tax revenue as a result of the stimulus program. However, this assumes productions would choose Georgia even without the 30% tax credit. That wasn’t the case as states like Louisiana and North Carolina scaled back incentives, and Texas stands ready to attract any production that might leave Georgia, spokesmen said.
“It’s a pretty well-known fact that if it weren’t for the tax incentive, they would go elsewhere,” said Danielle Rusk, location scout and director of Film Athens.
Part of the problem is that it’s difficult to quantify the impact of the creative industries, said David Sutherland, a professor at UGA’s Terry College of Business. In Georgia, depending on how you define it, it could be anywhere from $24 billion to $48 billion and 134,000 to 200,000 jobs. Sutherland advocated expanding the definition of “creative” to include categories such as the visual and culinary arts, developing a strategy and PR campaign to boost the creative industries, and focusing specifically on rural Georgia.
So far, the film and television boom has mostly benefited the Atlanta metropolitan area, where all the major studios are located. Athena Studios, which opened in Athens this year, is the first major studio outside of the Atlanta area, and several major productions are slated to begin in August and September, said founder Joel Harber. The studio partners with UGA to educate and employ film students.
Georgia State also has a fast-growing film school that focuses on video game development. And Georgia Film Academy, part of the University System of Georgia, has partnerships with more than 25 colleges and universities and 240 high schools in 100 counties across the state — except for South Georgia, where executive director Scott Votaw says he does it with the goal to expand. “The big win is that our talent stays in the state instead of leaving,” said Brennen Dicker, executive director of GSU’s Creative Media Industries Institute.
Several speakers pointed out that the film and television industry not only employs writers, actors and special effects designers, but also electricians, construction workers, caterers, restaurants, hotels and others. The tax credit program also benefits smaller productions that don’t qualify by ensuring access to equipment and experienced crews. “The tax incentive is great for the big ones, but also for the little ones, the brave independents,” said local producer Chris Hines.
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