1. LaurenP Borrego
1547 WoodlandCircle SE
Atlanta,GA 30316
678-558-0785
Lauren Patrice Wilson-Borrego
Writing Sample (Federal Employment)
GEORGIA AND THE ECONOMY
11 MAY 2016
2. LaurenP Borrego
1547 WoodlandCircle SE
Atlanta,GA 30316
678-558-0785
Film making in Atlanta, Georgia! Why? Whether you’re an adventure seeker, an
adrenaline junkie, looking for a good thriller, watching a guilty pleasure, or just trying to
entertain yourself for a while; movies, television shows, and other film productions are popular
sources of entertainment and enjoyment in America and around the world. Resultantly, the film
and production industry is an ever-growing and economically-important industry. Realizing the
significance of this industry and hoping to achieve some prosperity from it, the state of Georgia
introduced an act in 2002 to help spur economic growth and development. Georgia’s
Entertainment Industry Investment Act grants a 20 percent tax credit for companies that spend at
least $500,000 to produce feature films, television series, music videos, commercials, interactive
games, and animations in Georgia.1 These companies can receive an additional 10 percent tax
credit if their finished project includes a promotional logo provided by the state. Other benefits
that producers reap from the act include no limits or caps on spending done in Georgia, no sunset
clause, and travel and insurance qualify if purchased through a Georgia agency or company.2
Ideally, producers desire to produce in a manner such as to reduce their costs while maximizing
their revenue. Therefore, this tax credit has increased the demand to film and produce in Georgia
by incentivizing film makers and producers to move their productions to Georgia in order to
produce without paying high tax rates. As a result, the Georgia Entertainment Industry
Investment Act has positively affected Georgia’s economy by increasing the number of film and
television productions located in the state; thereby increasing the number of jobs in that industry,
1
“Tax Credits for Film & Entertainment Industries,” GoergiaGov, accessed February 13, 2016,
https://georgia.gov/blog/2012-09-19/tax-credits-film-entertainment-industries.
2
“Film, Television and Digital Entertainment Tax Credit,” Georgia Department of Economic
Development, accessed February 10, 2016, http://www.georgia.org/competitive-advantages/tax-
credits/film-television-and-digital-entertainment/.
3. LaurenP Borrego
1547 WoodlandCircle SE
Atlanta,GA 30316
678-558-0785
tax revenue collected from the industry, as well as the amount of money brought in through film
and television production. The Governor of Georgia, Governor Nathan Deal, however, wants to
repeal the Georgia Entertainment Industry Investment Act. Governor Deal ought not to repeal
the act because it facilitates a number of economic benefits for the state and Georgia will
face negative economic implications if it is repealed.
Governor Deal should not repeal the Georgia Entertainment Industry Investment Act
because the act facilitates many benefits for Georgia’s economy. Since the tax incentive has been
implemented, the demand for film and film production in Georgia has increased because
producers are attracted to the tax credits they can earn by producing their films in Georgia. This
increase in film production has supported over 11,000 full time jobs in the state. Additionally,
employment in the Film and Television industry has increased in Georgia over 500% since
2005.3 When producers choose to film or produce their products in Georgia, it increases the
amount of job opportunities for local workers. These jobs are not limited to people who are
seeking work in the film industry because entertainment production supports over 300 industry-
specific Georgia businesses and thousands other jobs.4 Indirect effects of production may
provide employment to supplementary workers such as carpenters, musicians, brokers, real estate
agents, hotels, and more (figure 3).
Since the enactment of the Georgia Entertainment Industry Investment Act, Georgia has
become one of the leading states for film and television production. The total value of production
3
Meyers Norris Penny, “Economic Contributions of the Georgia Film and Television Industry,” Georgia
Executive Summary, February 28,2011, http://www.mpaa.org/wp-content/uploads/2014/03/Georgia-
Executive-Summary_Feb28.pdf.
4
Georgia Perimeter College, Programrationale for FILM at Georgia PerimeterCollege (Clarkston,
2006).
4. LaurenP Borrego
1547 WoodlandCircle SE
Atlanta,GA 30316
678-558-0785
spending in Georgia has increased over 400% from 2007 to 2010, with the total annual
production spending in Georgia exceeding $600 million in 2010. 5 The increased number of
productions in Georgia has added over $800 million annually to the State’s Gross Product.6
Georgia reported a $770 million economic impact from revenue from additional film spending in
2009, while spending $141 million on the tax subsidy. Film and television production and related
activity has generated more tax revenues for the State than the costs of credits authorized (figure
1).7 As a result, Georgia’s economy is receiving more revenue from the Film and Television
Industry than it would have without the tax credit. Moreover, the increase in the film and video
industry increases tourism in Georgia, which also helps to boost the economy.
Critics may argue that the Georgia tax credit is not as beneficial to Georgia’s economy as
initial analysis may suggest because Georgia is losing potential revenue by providing tax credits.
When the government implements a tax on a particular item of industry, the tax earns revenue by
imposing a tax burden on consumers and producers for the government, which is then used to
pay for public goods, redistribute income, finance government operations, and correct market
failures and externalities. With the tax credit, however, producers do not have to bear as large of
a tax burden as they would have to bear without a tax credit. This lesser tax burden placed on
producers reduces the tax revenue per film achieved from the tax. This problem, however, is
mitigated because the tax credit attracts filmmakers and producers to produce their products in
Georgia. With the increase in film production, the net tax revenue that is collected, with the
5
Ibid.
6
Ibid.
7
Ibid.
5. LaurenP Borrego
1547 WoodlandCircle SE
Atlanta,GA 30316
678-558-0785
continued implementation of the tax credit, is more than the tax revenue was with fewer
producers and a higher tax revenue income per film without the tax credit. With the higher net
tax income, Georgia can more feasibly and more efficiently finance the aforementioned
initiatives and tax-collection purposes, thereby producing further positive effects for the state.
Georgia’s Entertainment Industry Investment Act provides up to a 30% tax credit for
productions made in Georgia. The film tax credit has been extremely beneficial to Georgia and
has encouraged film production and greatly increased the demand for making film productions in
Georgia. As a result of the increased film production, Georgia’s economy has seen positive
effects such as increased job opportunities for people working in the film making industry as
well as for jobs that can supplement film making, and an increase in the amount of money
Georgia brings in annually from film production and tourism and the taxation of those industries.
The act has helped to improve many aspects of Georgia’s economy, and with the repeal of the
act, Georgia would face some economic consequences. Therefore, Governor Nathan Deal should
decide not to repeal the act.
7. LaurenP Borrego
1547 WoodlandCircle SE
Atlanta,GA 30316
678-558-0785
Appendix
figure 1. The total value of production budgets and the total Georgia expenditures from 2005 to
2010.
8. LaurenP Borrego
1547 WoodlandCircle SE
Atlanta,GA 30316
678-558-0785
figure 2. The total number of feature films produced in Georgia from 1998 to 2010.
9. LaurenP Borrego
1547 WoodlandCircle SE
Atlanta,GA 30316
678-558-0785
figure 3. The indirect effects on the job market in Georgia that occurs when more films and
television series are filmed in the state.
10. LaurenP Borrego
1547 WoodlandCircle SE
Atlanta,GA 30316
678-558-0785
Quantity
Pri
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S
DD
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Tax Credit Effect on Film Production Demand in Georgia
DW
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Revenue
C
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P
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11. LaurenP Borrego
1547 WoodlandCircle SE
Atlanta,GA 30316
678-558-0785
References
“Film. Television and Digital Entertainment Tax Credit.” Georgia Department of Economic
Development. February 10. 2016. http://www.georgia.org/competitive-advantages/tax-
credits/film-television-and-digital-entertainment/.
Georgia Perimeter College. Program rationale for FILM at Georgia Perimeter College
(Clarkston. 2006).
Meyers Norris Penny. “Economic Contributions of the Georgia Film and Television Industry.”
Georgia Executive Summary. February 28. 2011. http://www.mpaa.org/wp-
content/uploads/2014/03/Georgia-Executive-Summary_Feb28.pdf.
“Tax Credits for Film & Entertainment Industries.” GoergiaGov. February 13. 2016.
https://georgia.gov/blog/2012-09-19/tax-credits-film-entertainment-industries.
