Georgia’s music tax incentives are now law

February 2018

Live events sector, recorded music, music publishing, video games


The first-ever tax incentive for Georgia’s music industry, the Georgia Music Investment Act is now in effect

The legislation is the result of the Recording Academy Atlanta Chapter and Georgia Music Partners’ joint advocacy efforts for over seven years to enact the first-ever targeted incentive specifically for music in Georgia, designed to reward investment in the music industry through a refundable tax credit. Supporters argue that the incentive will create jobs in music for musicians, logistics consultants, caterers, lawyers, accountants, engineers, producers, stage designers, lighting designers, managers, promoters and booking agents and could created thousands of new jobs in Georgia, following on from the success of Georgia’s film tax credit.

Billboard reports that Georgia has a rich musical heritage and has been the home of globally recognised artists inclusdingg  Ray Charles, James Brown, the Allman Brothers, REM, the B-52s, Alan Jackson, Usher, OutKast, Ludacris and many others. Georgia also boasts world class recording facilities and 48 music training and education programs and 15 professional orchestras.

The Act, signed into law by Governor Nathan Deal, provides a 15% refundable tax credit granted for the following in-state expenditures:

Musical Recording: An artist, record label or other production company that records or composes a musical recording with an aggregate spend of $100,000 annually that is publicly released and includes a qualified Georgia promotion.

* Musical Recording for Film, Television or Video Games: Writing, composing or recording of music for the purpose of inclusion into a film, television or interactive entertainment project not shot in the state, with an aggregate spend of $250,000 annually.

Tour Origination and Rehearsals: The preparation, planning, staging and rehearsing of a musical or theatrical performance intended for viewing by a live audience in Georgia with an aggregate spend of $500,000 annually. This may include, but is not limited, to concerts, musical tours, ballet, dance, comedy revue, opera, or live variety entertainment, or a series of productions occurring over the course of a twelve-month period that originate, are developed, and have their initial public performance before an audience within Georgia, or that have their United States debut within Georgia.

To state wide access, the Incentive includes an additional 5% credit if the project takes place in specified economically distressed areas. This tier system is administered through the Department of Community Affairs. The Process: Applications are administered through the Georgia Department of Economic Development (“GDEcD”) and Georgia Department of Revenue (“GDOR”).

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