IT-FC: Film Tax Credit (Revision 2019-07)

Who files this form

Form IT-FC is for production companies calculating Georgia's film tax credit. It includes special rules for Qualified Interactive Entertainment Production Companies.

The form does not provide a general rule stating who must file. It states that it is for tax years beginning on or after January 1, 2018.

What you'll need

Prepare these required attachments:

• A copy of the certification or certifications from the Georgia Department of Economic Development.
• A spreadsheet breaking down the base investment in Georgia, including expense categories and amounts.
• An employee list for wages included in the base investment, showing each employee's name, Social Security number and Georgia wages.
• A list of individual projects if you have multiple projects.

Also have these details ready:

• The taxpayer's legal name and address, contact information, FEI number, Georgia withholding tax account number, Film Withholding ID and Georgia sales tax registration number.
• The date the company began doing business in Georgia and, for a corporation, its state of incorporation.
• Current-year Georgia income tax liability and records of prior-year credits generated, used or transferred.
• Each current-year DOR certificate number and its final credit amount. Attach a list if necessary.

Qualified Interactive Entertainment Production Companies also need total aggregate Georgia payroll and the preapproved credit amount to complete their credit limitation calculation. The form says these companies must have received an approved Form IT-QIEPC.

Common mistakes

• Using the wrong credit code: Qualified Interactive Entertainment Production Companies must use credit code 133 when claiming the film tax credit on their income tax return.
• Completing the wrong calculation: Only Qualified Interactive Entertainment Production Companies complete number 3. Other production companies must leave it blank.
• Using prior-year credits against withholding without a timely election: A timely election must have been made for the respective prior year.
• Transferring a credit without Form IT-TRANS: The form warns that the transferee will not be allowed the credit unless the transfer is submitted on Form IT-TRANS.
• Trying to use credit above the payroll limit: For a Qualified Interactive Entertainment Production Company, credit above the total aggregate Georgia payroll limit cannot be carried forward, used against quarterly or monthly withholding payments, assigned, sold or transferred.

Questions people ask

How is the base investment credit calculated?

Multiply the base investment or excess base investment in Georgia by 20% on line 1.

Is there an additional credit for Georgia promotion?

Yes. Line 2 calculates an additional credit for Qualified Georgia Promotion at 10% of the base investment or excess base investment in Georgia. Add this amount to the base investment credit to calculate the total current-year credit.

How is the credit limited for a Qualified Interactive Entertainment Production Company?

Number 3 first compares the current-year credit with total aggregate payroll for employees working in Georgia and takes the smaller amount. It then compares that amount with the preapproved credit amount and again takes the smaller amount.

What if I have more than one project or DOR certificate?

For multiple projects, attach a list identifying each project. List each current-year DOR certificate number and its final credit amount, attaching a list if necessary.

Official sources

• https://dor.georgia.gov/document/form/itfc2018filmtaxcreditformpdf/download