Form It 611 - Corporation Income Tax Forms And General Instructions

NEW INFORMATION (continued)

•Changes the definition of “qualified Georgia promotion” to

HB 965 (O.C.G.A. §§ 48-7-114 and 48-7-129) This bill makes

the following changes:

specify that it includes a qualified movie production which in-

cludes a five-second long static or animated logo that pro-

Section 1 of the bill amends O.C.G.A. § 48-7-114(e) to provide

motes Georgia in the end credits before the below-the-line

that fiduciaries shall not be required to pay estimated tax with

crew crawl for the life of the project and which includes a link

respect to any taxable year ending before the date two years

to Georgia on the project’s web page; and to specify that it

after the date of the decedent’s death in the case of:

includes a qualified TV production which includes an embed-

1. The estate of such decedent; or

ded five-second long Georgia promotion during each broad-

2. A testamentary trust as defined in IRC Section 6654(l)(2)(B).

cast worldwide for the life of the project and which includes a

link to Georgia on the project’s web page.

•Defines the term “qualified interactive entertainment produc-

Section 2 of the bill amends O.C.G.A. § 48-7-129, relating to

nonresident withholding for partnerships, Subchapter ‘S’ cor-

tion company”.

•Changes the definition of “qualified production activities” to

porations, and limited liability companies. Currently withhold-

ing is required on any monthly “distributions paid” and on an-

specify that commercials must be televised; to add a comma

nual “distributions credited but not paid”. This bill changes

between “series” and “pilot”; to include video on demand, di-

the requirement such that withholding will only be required

rect to DVD, digital platforms designed for the distribution of

annually on the nonresident member’s share of the taxable

interactive games, and advertiser supported sites as part of

income sourced to this state, whether distributed or not. The

multimarket commercial distribution; to eliminate corporations,

payment is due on or before the due date (without extensions)

live venues, the internet, or any other channel of exhibition

for filing the income tax return of the entity.

from multimarket commercial distribution; and to specify that

local interest programming, instructional videos, corporate vid-

This bill became effective when the Governor signed the bill

eos, or projects not shot, recorded or originally created in

and Section 2 is applicable to taxable years beginning on or

Georgia shall not be included in the definition of “qualified pro-

after January 1, 2012.

duction activities”.

•Adds to the definition of “state certified production” by provid-

HB 1027 (O.C.G.A. §§ 48-7-40.24 and 48-7-40.26) This bill

ing that, in the instance of a “work for hire” in which one pro-

makes the following changes:

duction company hires another production company to pro-

duce a project or contribute elements of a project for pay, the

Section 1 of the bill amends Code Section 48-7-40.24 (mega

hired company shall be considered a service provider for the

tax credit):

hiring company, and the hiring company shall be entitled to

•Defines the term “affiliate”.

the film tax credit.

•Includes the term “taxpayer”, and adds the phrase “and its

•Allows a qualified interactive entertainment production com-

affiliates” to the definition of “business enterprise”.

pany to claim the film tax credit.

•Section 1 is applicable to taxable years beginning on or after

•Specifies that in lieu of the inclusion of the Georgia promo-

January 1, 2012.

tional logo, the production company or qualified interactive

entertainment production company may offer alternative mar-

Section 2 of the bill amends Code Section 48-7-40.26 (film tax

keting opportunities to be evaluated by the Georgia Depart-

credit):

ment of Economic Development (DECD) to ensure that they

•Changes the definition of “multimarket commercial distribu-

offer equal or greater promotional value to the state of Geor-

tion” to specify that the term means “paid” commercial distri-

gia.

•Provides that DECD shall prepare an annual report detailing

bution.

•Includes expenditures (excluding license fees) incurred with

the marketing opportunities it has approved and specifies what

Georgia companies for sound recordings and musical compo-

must be included in the report and when the report must be

sitions in the definition of “production expenditures”.

submitted.

•Eliminates the requirement that a travel agency or travel com-

•Specifies that in no event shall the aggregate amount of tax

pany must be “based” in Georgia from the definition of “pro-

credits allowed for qualified interactive entertainment produc-

duction expenditures”; eliminates the requirement that an in-

tion companies and affiliates exceed $25 million. The maxi-

surance agency or company must be “based” in Georgia from

mum credit for any qualified interactive entertainment produc-

the definition of “production expenditures”.

tion company and its affiliates shall be $5 million.

•Specifies that the term “production expenditures” shall not

•Provides that the Commissioner shall allow the tax credits

include postproduction expenditures for footage shot outside

for qualified interactive entertainment production companies

of Georgia, marketing, story rights, or distribution, but shall

on a first come, first served basis based on the date the cred-

not affect other qualified story rights; and specifies that pay-

its are claimed. When the $25 million cap is reached, the tax

ments to a loan-out company that have met their withholding

credit for qualified interactive entertainment production com-

tax obligations as newly specified in the law are included in

panies shall expire.

•Section 2 is applicable to taxable years beginning on or after

the definition of “production expenditures”.

January 1, 2013.

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Form It 611 - Corporation Income Tax Forms And General Instructions - 2012 Page 5

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