Historical data for 2023 reveals a 15% decrease in direct film and television production spending in Georgia, reversing years of record growth. The decline totals approximately $3.7 billion, down from $4.4 billion in 2022, according to the Motion Picture Association of Georgia. Local businesses, including caterers and equipment rental companies, reported a 20% average drop in film-related revenue in 2023, states the Atlanta Business Chronicle.
Georgia's film tax incentive attracted billions in production spending, but its design and increasing global competition now drive productions overseas.
Given declining spending and a state review, Georgia will likely reform its film tax incentive or face a continued exodus of major productions, impacting its local economy.
How Georgia's Film Incentive Works
Georgia's film tax incentive offers a 30% transferable tax credit for productions spending over $500,000, as stated by the Georgia Department of Economic Development. The credit is fully transferable, allowing companies to sell unused credits to other Georgia taxpayers. Critics argue this reduces direct economic benefit, according to the Tax Policy Center. An independent economic analysis supports this, suggesting Georgia receives only $0.18 in net new tax revenue for every $1 in tax credit, according to the Georgia Public Policy Foundation. The low return implies Georgia effectively subsidizes a global industry without securing a proportional benefit for its public services.
Why Productions Choose Overseas Locations
A major studio recently shifted an upcoming blockbuster's production from Atlanta to the UK, citing more favorable exchange rates and local incentives, according to the Hollywood Reporter. Canada and the UK have significantly increased their film incentive packages, attracting more international productions, states the Film Industry Global Report. Industry insiders suggest a lack of skilled labor in specialized areas also contributes to productions looking elsewhere, according to Variety. Global competition, coupled with Georgia's transferable tax credit system, makes its film industry highly susceptible to a rapid exodus of productions, evidenced by the 2023 spending decrease.
