IT-PFC: Postproduction Film Tax Credit (Revision 2018-01)

Who files this form

Georgia Form IT-PFC is used to calculate the Postproduction Film Tax Credit. It has separate calculation sections for postproduction companies and small postproduction companies.

• Postproduction companies use Section C. It requires at least $250,000 in total payroll for employees working in Georgia in the current year.
• Small postproduction companies use Section D, not Section C. Section D requires at least $100,000 but less than $500,000 in total payroll for employees working in Georgia in the current year.

What you'll need

The form requires these attachments:

• A spreadsheet breaking down qualified postproduction expenditures in Georgia. The breakdown may be by expense category.
• An employee list for employees whose wages are included in those expenditures. Include each employee’s name, Social Security number, and Georgia wages.

You will also need information to complete the form, including:

• Tax year beginning and ending dates.
• The taxpayer’s legal name, address, FEI number, Georgia withholding tax account number, and Georgia sales tax registration number.
• Contact person’s name, title, telephone number, and email address.
• The date the company began doing business in Georgia and, for a corporation, its state of incorporation.
• Qualified expenditure amounts, Georgia payroll, the preapproved credit amount, and current-year Georgia income tax liability.
• Prior-year credit amounts and details of any credits used against withholding, claimed against income taxes, or transferred, including amounts and years.

Common mistakes

• Completing the wrong calculation section. The form says small postproduction companies should not complete Section C. Use Section D instead.
• Missing required attachments. Attach both the expenditure spreadsheet and the employee list described in Section B.
• Overlooking payroll requirements. Section C requires Georgia employee payroll of at least $250,000. Section D requires at least $100,000 but less than $500,000.
• Using prior-year credits against withholding without a timely election. The form says prior-year credits are not eligible for use against withholding unless a timely election was made for the respective prior year.

Questions people ask

What is the basic credit rate?

Sections C and D both list a 20% credit rate for qualified postproduction expenditures.

Does the form provide additional credits?

Section C lists an additional 10% credit if the qualified production expenditures associated with the postproduction work were incurred in Georgia. It also lists an additional 5% credit for qualified postproduction expenditures incurred in a tier 1 or tier 2 county designated by DCA under O.C.G.A. § 48-7-40.

Does the preapproved amount limit the current-year credit?

Yes. Section C, line 8, takes the lesser of line 6 or the preapproved credit amount on line 7. Section D, line 1(g), takes the lesser of line 1(e) or the preapproved credit amount on line 1(f).

What prior-year credit information does the form ask for?

Section F asks for credits claimed in prior years, amounts used or transferred, and the balance available to carry forward. It also asks whether that balance was previously used against withholding, claimed against income taxes, or transferred, along with the amounts and years.

Official sources

• https://dor.georgia.gov/document/form/it-pfcpostproductionfilmtaxcreditpdf/download