Sugar Creek Capital facilitates the connections that maximize the value of Georgia’s film and entertainment state tax credit for film producers and investors.
We work with a diverse range of major studios and independent producers to help them secure state tax credits that fund up to 30 percent of their expenditures for film, TV and digital projects. Our team also facilitates the transfer of tax credits from production companies to taxpayers seeking a safe, effective opportunity to reduce their own state income tax liability.
With an impeccable track record of success, Sugar Creek executives have overseen hundreds of millions of dollars of film and entertainment state tax credit transactions since Georgia state legislation was amended in 2008.
Our Georgia-based team provides unmatched guidance and on-the-ground support at every stage of the process. Clients benefit from our specialized expertise, knowledge of current legislation and unwavering commitment to their objectives.
The state of Georgia offers tax credits of up to 30 percent of film and entertainment project expenditures as an incentive to encourage producers to invest in the state and contribute to its economy.
The program is available to production companies that spend at least $500,000 on production and post-production in Georgia, either in a single production or on multiple projects. Qualifying projects include feature films, television series, commercials, music videos, animation and game development.
Production companies can transfer – or sell – extra credits to taxpayers for them to apply to their own state income tax liability. Credits can only be transferred once, but they can be transferred to more than one buyer.
Anyone who has a state income tax liability in Georgia can purchase and use the film and entertainment tax credits. This includes individuals, corporations, trusts, partnerships and LLCs.
Because the financial market is dynamic, the pricing of tax credits continues to fluctuate depending on supply and demand.
The tax credits can be applied in the tax year they are purchased by an investor or in the year the production company originally established them. For example, tax credits bought in 2015 from a company that generated credits in 2014 can be applied against the 2014 or 2015 tax or even future year liabilities.
Tax credits can be carried forward five years from the date in which the production company established them. Tax credits established in calendar year 2014, for example, may be carried forward and used for tax years 2015 through 2019.
We encourage you to expand your knowledge about this industry. Here are some resources that may help:
Film and entertainment state tax credits offer an extremely safe, conservative investment opportunity.
Sugar Creek will oversee tax credit transfers only after a production company has completed its expenditures, undergone an audit or agreed upon procedures to verify the accuracy of expenses, and filed all required documents with the Georgia Department of Economic Development and the Georgia Department of Revenue.
Sugar Creek executives have overseen hundreds of millions of dollars of successful state tax credit transactions. If, for any reason, any credits are disallowed, indemnification language is included to reimburse buyers for lost credits, refiling fees, legal fees and penalties. To date, Sugar Creek has not experienced any recapture on state credits.
Director of Tax Credit Sales
Hampton Mallis, CPA
Principal, Senior Vice President, Investments
17 W. Lockwood Avenue St. Louis, MO 63119 p: 314-968-2205
1819 Peachtree Road, NE Suite 230 Atlanta, GA 30309 p: 404-343-1062
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