Every $1 in Film Tax Incentives Generates a Return on Investment of $6.30
ATLANTA (Nov. 6, 2023) — A newly released study based on unprecedented access to Georgia film production data confirms the state’s film tax incentive has fueled billions in economic activity statewide — $8.55 billion in fiscal year 2022 alone; is responsible for nearly 60,000 jobs; and generates a return on investment of $6.30 for every $1 in tax incentive.
The Economic Impact Study of Georgia’s Entertainment Industry Tax Credit is the most comprehensive look to date at the economic impact of the film tax incentive and the role it plays in Georgia's film industry success. The findings of the expanded economic study are based on wide-ranging industry data; extensive qualitative and quantitative research; and sector-specific IMPLAN modeling, a robust economic modeling tool used by governments, business professionals and academics to analyze economic development policies and programs.
"The results are in and the data unequivocally points to a win for Georgians,” said Kelsey Moore, Executive Director of the Georgia Screen Entertainment Coalition, which initiated the third-party study. “This study proves the film tax incentive is working exactly as intended. It's created high-paying jobs for Georgians, supports thousands of new and existing small businesses, and attracts billions in production spending and investment each year. Through the vision and foresight of state leaders and the General Assembly, the film industry continues to benefit families, communities and workers throughout the state."
According to the study, conducted by Olsberg • SPI, a 30-year-old London-based firm that has documented the film industry’s impact around the world for governments, film institutes and trade associations, in 2022 Georgia’s film tax incentive was directly responsible for:
● $3.54 billion in wages, retirement benefits and healthcare benefits that support
Georgia households statewide.
● $5.54 billion in value added to Georgia’s economy.
● $8.55 billion in economic output that would not exist without the film industry.
Analysis shows that production spending in Georgia grew by more than 17% each year from 2012-2023, creating a $29.65 billion economic impact on Georgia’s economy and supporting $12.2 billion in wages in the past five years alone.
The study showed that studio construction, which does not receive the film tax credit, created $1.28 billion in capital investment from 2012-2022, and brought Georgia’s stage space from 45,000 square feet to more than 5.6 million square feet. Nearly $3 billion in investment is planned for 2024-2027, which is predicted to have an economic impact of $5.7 billion on the state and support another 15,400 jobs in 2025.
“The study found that without the film tax incentive, more than 92% of productions would have chosen another state or country, strongly underscoring the importance of a stable, competitive incentive to keep film production and studio construction investment in Georgia,” Moore said. “Georgians and Georgia businesses have followed the state's lead in investing in an industry that now supports nearly 60,000 Georgians, more than 15,000 businesses, and tens of thousands of Georgia students training to work in this industry in their home state.
“If alterations to the film tax incentive make our state no longer competitive for production, Georgians all across our state will be the ones that lose. It will leave tens of thousands of Georgians and their families without wages and benefits. It will halt the billions in capital investment and production spending flowing to our communities and small businesses, and it will drive homegrown talent out of our state.”
This study confirms that Georgia’s film incentive has been a blockbuster success for the state, driving economic benefits, jobs and opportunity to citizens across the state.
About GSEC: The Georgia Screen Entertainment Coalition (GSEC) is the unified voice of Georgia’s film, television and digital entertainment industry, dedicated to promoting and protecting the widespread economic opportunities it brings to Georgians. Its members include Georgia studios, vendor partners, crew, content creators, workforce development and educational institutions, film commissions and leading industry infrastructure businesses. Learn more at GSECoalition.com.
About the Economic Impact Study of Georgia’s Entertainment Industry Tax Credit: This study was conducted by Olsberg • SPI, a 30-year-old London-based firm that has documented the film industry’s impact in markets around the world for governments, film institutes and trade associations. The expanded economic study relied on unprecedented access to new data; extensive qualitative and quantitative research; and sector-specific IMPLAN modeling, a robust economic modeling tool used by local governments, business professionals and academics to analyze economic development policies and programs. The third-party independent study was commissioned by GSEC to examine the economic impact of Georgia’s film incentive program and provide an up-to-date and comprehensive reflection of the industry in Georgia. Learn more at o-spi.com.