September 17, 2019

September 17, 2019

Subscribe to Latest Legal News and Analysis

September 16, 2019

Subscribe to Latest Legal News and Analysis

Georgia’s Limited Tax Credits for Interactive Entertainment Producers

On April 15,[1] Georgia passed a law[2] amending its tax code to provide a limited tax credit to qualified interactive entertainment companies. The law provides incentives for mid-size game developers who demonstrate sufficient ties to Georgia. Qualified interactive entertainment companies are those that:

  • maintain a physical business location in Georgia

  • have a total aggregate payroll of $500,000 in a taxable year or more for employees working in Georgia

  • have a gross income less than $100 million in a taxable year and

  • are approved by the Georgia Department of Economic Development as engaged in qualified production activities related to interactive entertainment.[3]

Under the law, the total amount of aggregate tax credits is not to exceed $25 million for a given year.[4] Sorry, this is the aggregate limit, not the credit available to each company.

When planning operations, game developers may want to consider states in the U.S. (like Georgia) and favorable locations abroad that provide tax or investment incentives to the game industry. More on this later!


[1] See http://www.times-herald.com/local/20140414-incentives2014-04-14T11-01-31.  See also http://www.businessinsider.com/georgia-tax-break-on-game-developer-2014-4; http://venturebeat.com/2014/04/15/southern-comfort-georgia-deals-out-25m....

[2] See https://gov.georgia.gov/sites/gov.georgia.gov/files/related_files/document/143729.pdf.

[3] See id., p. 1 ll. 19-26.

[4] See id., p. 2 ll. 30-36.

Copyright © 2019, Sheppard Mullin Richter & Hampton LLP.

TRENDING LEGAL ANALYSIS


About this Author

James Chadwick, entertainment, technology, attorney, Sheppard Mullin, law firm
Partner

James Chadwick is a partner in the Entertainment, Technology and Advertising and Business Trial Practice Groups in Sheppard Mullin's San Francisco and Palo Alto offices. Mr. Chadwick's practice focuses on litigation and counseling for media, technology, and online businesses, including copyright, patent and trademark litigation, media, First Amendment and privacy law, and general business litigation. Prior to joining Sheppard Mullin, he was a partner at DLA Piper Rudnick.

650-815-2605
Mukund H. Sharma, Sheppard Mullin Law firm, Intellectual Property Lawyer
Associate

Mukund Sharma is an associate in the Intellectual Property Practice Group in the firm's Palo Alto office.

Areas of Practice

Mr. Sharma specializes in all areas of intellectual property law, with emphases in patent prosecution, patent litigation, and strategic patent counseling, particularly in the electrical, computer, and mechanical arts. 

Mr. Sharma was previously an Assistant Federal Public Defender for the District of Nevada and may renew an inactive Top-Secret TS/SCI security clearance.

650-815-2645