November 20, 2023

Georgia’s Built for Success!

Courtesy of Freepik.com

Coincidentally released just days before the end of the SAG-AFTRA strike, the Georgia Screen Entertainment Coalition (GSEC) released a report detailing the economic impact of the State’s film tax credit and the role it plays in the success of the state’s film industry; the report is entitled Georgia’s Film Industry: A Blockbuster Success For the State.

As one of the leading film and television destinations in the world, the report emphasized that every $1 in film tax credits issued generates a return on investment of $6.30 in economic impact for Georgia. In a review of funds invested in FYE 6/30/22, the report found the following:

• 59,700 Jobs

• $3.54B in Labor Value

• $5.54B Economic Value Added

• $8.55B Total Economic Output

Opportunity and Jobs

Georgia's significant investments in the film and television industry have solidified its global leadership in the production arena. Today, productions in Georgia have the benefit of a mature industry where the workforce understands that the value of its career. The film tax credit has spurred the creation of well-paying jobs, spanning from (i) direct production jobs such as electricians, construction workers and digital artists to (ii) indirect service positions such as location/real estate specialists, tax credit auditors, and brokers. Furthermore, on-set crew positions in Georgia are primarily held by residents, with an average salary of approximately $86,000 for the workforce.

Studio and Stage Space

From 2012 to 2022, the Georgia film tax credit played a pivotal role in driving $1.28 billion in studio construction investment. In the report, approximately 94% of studio owners acknowledged that the growth is a direct result of the tax credit. Interestingly enough, the tax credit doesn't consider studio construction expenses as qualified production costs.

Tourism

As numerous studies and articles have shown, there is a direct correlation between tourism to a jurisdiction and its corresponding film/television incentive. Georgia is no different. The GSEC report noted that the state’s production sector significantly enhanced tourism, driving increased visitor spend that benefited local businesses and strengthened the state's brand.

From 2007 to 2022, regional film production activities proved to be powerful tourist attractions, supporting community marketing, brand development, and overall tourism efforts. Film destinations have sprung up in every corner of Georgia. The report gave the following examples: Senoia, GA (transformed from 5 businesses to 150+ businesses in that time period) and

Covington, GA (welcomed 96,383 visitors in 2022, resulting in increased revenue and property tax savings).

Single Production

In an analysis of one single feature film, the GSEC report revealed that 67% of its below-the-line expenditures were distributed across the following sectors:

Sector	Allocation Percentage
Production-specific Expenses	33.2
Construction	13.1
Travel & Transportation	8.8
Local Labor	8.4
Music & Performing Arts	7.7
Location Fees & Real Estate	6.6
Fashion & Beauty	5.4
Hospitality & Catering	5.1
Power & Utilities	4.1
​Safety & Security	4.0
Digital Services	2.3
Business Support	1.4

Furthermore, this production engaged cast and crew from more than 35 state counties, including 9% from the Savannah region.

All in all, the GSEC report is a vital tool in the industry’s continued efforts to provide policymakers with accurate and reliable data on the economic impact of Georgia’s film tax credit on the state and a vehicle that we can all utilize to illustrate that Georgia is built for success!

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1 https://www.gsecoalition.com/eis

2 https://www.academia.edu/1471593/How_film_and_television_programs_can_promote_tourism_and_increase_the_competitiveness_of_tourist_destinations email_work_card=view-paper