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1 The following chart represents expenditures that apply only to the film production portion of the Film Tax Credit codified in Code Section (not to the interactive entertainment portion of the Film Tax Credit). This chart does not apply to the Postproduction Film Tax Credit (codified in Code Section A, effective January 1, 2018), or the Musical Tax Credit (codified in Code Section , effective January 1, 2018). Any qualified production expenditures claimed under the Postproduction Tax Credit or Musical Tax Credit are not eligible for the Film Tax Credit. The Georgia Department of Revenue has determined the expenditures listed herein are generally "directly used" in a qualified production activity, as defined by Georgia Regulation , subject to the following overarching guidelines: 1 Actual facts and circumstances. The actual facts and circumstances of the transaction may change the determination. 2 All expenditures must meet any applicable Georgia Department of Economic Development rules included in Chapter Loanout Companies. All payments to loanout companies for services provided are subject to 6% withholding unless the payment is for reimbursement of expenses that are not required to be included in the loan out withholding amount. 4 Georgia Vendor requirement - Goods. All purchases and rentals of tangible personal property used in the production must be from a qualified Georgia Vendor as defined by Regulaton Georgia Vendor requirement - Services not at the filming site. All services that are not provided at the filming site must be provided by a Georgia vendor as defined by Regulaton and can be included only to the extent the service is performed in Georgia. 6 Other expenses. Other expenses must meet any applicable statutory and regulatory requirements. This chart is intended to provide a guideline regarding the qualification of certain expenditures incurred during the production of a project in Georgia. Not all potential qualified expenditures are listed and account numbers/categories are for example purposes only. Each production company may require a different numbering or categorization system for budgeting and accounting purposes. For questions regarding specific expenditures that may not be listed herein or for special circumstances, please contact Pamela Goshay, Legal Affairs & Tax Policy at Pamela.Goshay@dor.ga.gov or ACCOUNT # DESCRIPTION QUALIFIED COMMENTS ABOVE THE LINE STORY & RIGHTS Storyboard Copyright Fee Story Rights WRITING Assistants Only for services provided on-set. - Writers Only for services provided on-set. Editors & Consultants Only for services provided on-set. Research Only for services provided on-set. Script Timing Only for services provided on-set. Writers Room Only if in Georgia and for the preproduction and production period (not development), regardless if room is on-set or off-set. Clearance Fees Script Clearance Research PRODUCER & STAFF Assistants Associate Producers Executive Producer Line Producer Private Security Producer Entertainment, morale, gifts, flowers Financing Costs
2 Wrap Party/Crew & Cast Gifts DIRECTOR & STAFF Assistants Choreographer Dialogue Coach/Acting Coach Director Private Security Second Unit Director Technical Advisor Entertainment, morale, gifts, flowers Royalty Fees TALENT & SUPPORT Daily/Weekly Players Dancers Guardian for Minor Cast Members Personal Trainers/Fitness/Chef Principal Cast Principal Talent Staff/Expenses Private Security Puppeteers Rehearsals Supporting Cast Teacher/Tutor for Minors Technical Advisor Voice/Dialogue Coaches Nanny/Childcare Perk Packages Visa Expenses for Foreign Talent STUNTS Stunt Coordinator Stunt Players Stunt Purchases and Rentals Stunt Riggers/Safeties Stunt Safety Advisors CASTING Casting Agencies Casting Assistants Casting Director TRAVEL & LIVING (Above the Line) Airport Greeters Commercial Airfare One round-trip flight between residence and Georgia. Ground Transportation - Airport<-->Hotel/Set One round-trip between airport and hotel. Ground Transportation - GA Residence<->Airport One round-trip between airport and residence.
3 Ground Transportation - Hotel<-->Set Housing - Hotels Up to the amount as set forth by the United States General Services or the person's income in order to be qualified). Limited to one room per person. Housing - Private Residence Up to the amount as set forth by the United States General Services or the person's income in order to be qualified). Luggage Fees Per Diem Up to the amount as set forth by the United States General Services or the person's income in order to be qualified) Private Jets Rental Car Limited to one vehicle per personnel. Travel Agency Fees Cleaning of Private Residence Reception Gifts Studio Executives Airfare Travel/Living Expenses for Non-Employees (i.e., nanny, spouse, children, FRINGE BENEFITS (Above the Line) Employer Taxes (SUI/FUI/FICA) Hotel Per Diem Up to the amount as set forth by the United States General Services or the person's income in order to be qualified). Limited to one room per person. Local Hire Meal Per Diem Up to the amount as set forth by the United States General Services or the person's income in order to be qualified). Pension Health & Welfare PRODUCTION PRODUCTION STAFF Assistant Location Manager Assistant Production Accountants Assistant Production Coordinator Construction Accountant First Assistant Director Key Second Assistant Director Location Manager Location Scouts Miscellaneous Prep/Board/Budget Other DGA Staff Payroll Accountant Production Accountant Production Assistants Production Coordinator Production Manager Production Supervisor Script Supervisor
4 Technical Advisor/Consultants/Interpreter EXTRA TALENT Atmosphere Cars Extras - Union/Non-Union Precision Drivers Stand-ins Visa Expenses for Foreign Talent CAMERA Additional Camera Crew Camera Operator Camera package D.I.T. Director of Photography First Assistant Camera Operator Helmet Camera Loaders Second Assistant Camera Operator Steadicam Assistant Steadicam Operator Still Photographer Stills Purchases ART DEPARTMENT/SET DESIGN Art Department Coordinator Art Director and Assistants Other Art Department Labor Production Designer Set Designers Set Model Builders Sketch/Storyboard Artists SET CONSTRUCTION Backings Construction Carpentry foreman Construction Coordinator Construction First Aid Construction Paint Foreman Fold and Hold Sets Greens Lighting Platforms Mill Rental Scaffolding
5 Set Construction Labor Set Construction Materials/Supplies/Rentals Set Striking - Labor/Materials/Rentals Trash Disposal GRIP/SET OPERATIONS Additional Grip Labor Craft Services Greensperson Grip Package Grip/Labor Foreman Grips - All Rigging and Striking Grips Set First Aid Set Watchperson/Security Standby Carpenters Standby Painters Infractions/Tickets/Violations ELECTRICAL Additional Lamp Operators Best Boy Electrician Cable Package Electric Current Tie-Ins Electric Package Electricians Gaffer/Chief Lighting Technician Generator Operator/Assistants Generator Rentals Globes/Gels/Carbons Lamp Operators Rigging Package Rigging/Striking Electricians Special Equipment Operator Specialty Lighting Stage Package SET DRESSING Buyers Leadperson /Rentals Research Must be part of pre-production and not development. Set Decorator Set Dressers
6 Set Dressing Manufacturing/Labor Swing Gang/Additional Labor ACTION PROPS Assistant Propmaster/Labor Manufacturing Labor/Materials Propmaster /Rentals PICTURE VEHICLES/ANIMALS Additional Trainers/Handlers Aircraft/Helicopter Rentals Animal Animal Transportation/Feeding/Stabling Head Wrangler/Assistants Marine /Modifications Picture Car Coordinator Picture Car Drivers Picture Car /Modifications Ramrods Veterinarian Wild Animal Trainer/Handler SPECIAL EFFECTS (SPFX) Additional SPFX Labor SPFX Assistants SPFX Coordinator SPFX Foreman SPFX Manufacturing SPFX Rigging/Striking VISUAL /CREATURE/MECHANICAL EFFECTS (PRODUCTION) CG Animation Rigging CG Modeling Must be part of pre-production and not development. Compositing Concept Design and Look Development Must be part of pre-production and not development. Digital Matte Painting Film Scanning/Data Capture/Transcoding FX Animation Miniatures/Models Photography Motion Capture Photography Previsualization Must be part of pre-production and not development.
7 Rotoscoping/Paint Set Survey Unit/3D Scanning Software R&D and Tech Support Steroscopic Unit Stop Motion & Animatronics Unit Texturing/Lighting/Shading/Rendering Tracking/Match Move VFX Coordinator VFX Data Wrangler VFX Editor VFX Physical Production Unit VFX Producer VFX Sterographer Visual FX Supervisor Wire/Rig Removal/Fix it Work WARDROBE Costume Designer/Assistant Costume Sketch Artist Costume Supervisor Costumers Expendable Manufacturing Labor Outside Alterations Restocking Fee Seamstress/Tailor Wardrobe Assistants Wardrobe Cleaning/Drying/Dry Cleaning Wardrobe/Shop Rentals Washing Machine/Dryer MAKEUP & HAIRDRESSING Body Makeup Artists Hairstylists Key Hairstylists Key Makeup Artists Makeup Artists Prosthetic Makeup Artists Wig Rentals PRODUCTION SOUND Additional Audio Crew Audio Playback Assistant Audio Playback Operator Boom Operator Cablepersons
8 Mixer Sound Package Special Boom Operator LOCATIONS/SET/PRODUCTION OFFICE Air Conditioning/Heating Rentals Catered/Production Meals/Labor Commercial/Private Shipping Location/Inconvenience Fee/Rentals Office Rentals/Expenses Office Supplies Parking Permits Police/Firemen Portable Restroom Facilities Production Office Rent Scouting Labor/Expenses Generally allowed after production office opens. Also scouting expenses not to exceed 2 weeks before the production office opens is allowed. Security Shipping/Postage to/from the Production Office Stage Rental Stage Restoration Telephones Utilities/Waste Disposal Water TRAVEL & LIVING (Below the Line) Airport Greeters Commerical Airfare One round-trip flight between residence and Georgia. Ground Transportation - Airport<-->Hotel/Set One round-trip between airport and hotel. Ground Transportation - GA Residence<->Airport One round-trip between airport and residence. Ground Transportation - Hotel<-->Set Housing - Hotels Up to the amount as set forth by the United States General Services or the person's income in order to be qualified). Limited to one room per person. Housing - Private Residence Up to the amount as set forth by the United States General Services or the person's income in order to be qualified). Luggage Fees Per Diem Up to the amount as set forth by the United States General Services or the person's income in order to be qualified) Private Jets Rental Car Limited to one vehicle per personnel. Travel Agency Fees Cleaning of Private Residence
9 Reception Gifts Studio Executives Airfare Travel/Living Expenses for Non-Employees (i.e., nanny, spouse, children, VIDEO TAPE/PLAYBACK Cell Phone Miscellaneous Video Labor Playback Assistant Playback Operator Technical Director Video Assist Operator Video Assist Package Video Transfers TRANSPORTATION Camera Cars/Cranes Drivers Gas/Oil Ground Transportation/Car Services/Taxis See Travel & Living category for clarification. Honeywagon/Trailer Supplies Messengers Mileage Allowances Parking Production Trucks/Vehicles Self-Drives In-state mileage only (not to/from the home state) Tolls/Road Permits/EZ Passes Transportation Coordinator Loss/Damage Parking Tickets Private Tour Bus/Driver/Mechanic Repairs/Maintenance/Car Wash PRODUCTION FILM & LAB Dailies Develop Printing Rawstock Sound Transfers Still Photo Stock/Developing For on-set photography, even if developed off-set. Telecine SECOND UNIT All Categories Same treatment as First Unit TESTS All Categories Same treatment as First Unit ADDITIONAL PRINCIPAL PHOTOGRAPHY All Categories Same treatment as First Unit AUDIENCE RELATIONS Audience
10 Bleachers/Drapes Food/Drink Talent Transportation FRINGES (Below the Line) All Categories POST-PRODUCTION (all work must be performed in Georgia on footage shot in Georgia) EDITING & PROJECTION Coding Coding Equipment Continuity Script Editorial Room Rentals Film Editor/Assistants Non Linear Editing Systems Post Coordinator Post Production Accountant Post Production Office Rental Post Production Supervisor Post Shipping/Messenger Screenings Loss/Damage MUSIC Music Edit Rooms/Equipment Music Editors Music Supervisor Rental/Cartage Scoring Musicians Scoring Stage Songwriters/Composers Vocal Talent Clearances/Licensing/Rights Loss/Damage SOUND (Post-Production) ADR Expenses (excluding talent) ADR Mixer and Stage Dolby Cards Final Dub Foley Stage and Expenses Premix Print Master Sound Editors Sound Equipment/Room Rental
11 Supervising Sound Editor Temp Dubs Transfer Costs (video/tape) License Fees (Dolby/DTS/SDDS) Loss/Damage Stock Sound Purchases POST-PRODUCTION FILM & LAB Answer Prints Check Print Digital Intermediate Scanning/Color Correction Interpositive/Internegative Lab Special Handling/Overtime Master Positive YCM Negative Splicing On Line Editing Optical Sound Track Projection Master-YCM Reprints Stock Footage Elements/Expenses Stock Shots Labor Video Masters Stock Footage Purchase/License Fees VISUAL EFFECTS (POST-PRODUCTION) Archiving & Deliverables Compositing Data I/O Graphic Art/Animation Rotoscoping & Paint Tracking & Match Move VFX Coordinator VFX Editor VFX Producer VFX Supervisor Wire/Rig Removal/Fix it Work Loss/Damage TITLES, OPTICALS, INSERTS Inserts Main & End Titles Optical Development Optical Effects Title Engineer Copyright/Trademark MPAA Rating/Seal TRAVEL & LIVING (Post-Production) Airport Greeters Commercial Airfare One round-trip flight between residence and Georgia.
12 Ground Transportation - Airport<-->Hotel/Set One round-trip between airport and hotel. Ground Transportation - GA Residence<->Airport One round-trip between airport and residence. Ground Transportation - Hotel<-->Set Housing - Hotels Up to the amount as set forth by the United States General Services or the person's income in order to be qualified). Limited to one room per person. Housing - Private Residence Up to the amount as set forth by the United States General Services or the person's income in order to be qualified). Luggage Fees Per Diem Up to the amount as set forth by the United States General Services or the person's income in order to be qualified) Private Jets Rental Car Limited to one vehicle per personnel. Travel Agency Fees Cleaning of Private Residence Reception Gifts Studio Executives Airfare Travel/Living Expenses for Non-Employees (i.e., nanny, spouse, children, FRINGES (Post-Production) All Categories Same treatment as Production OTHER INSURANCE Cast Insurance Insurance Taxes Only if Georgia taxes. Marine & Aircraft Insurance Negatives Insurance Deductible E&O Insurance Insurance Claims Insurance Company Reimbursements Must offset losses incurred in Georgia PUBLICITY Attendance at Premiere Entertainment Off-Set Publicity On-Set Publicity PRODUCT PLACEMENT Product Placement Labor and Expenses GENERAL EXPENSES Alcohol Bank/Exchange Costs CPA Audit Fees Credit Card/Purchase Card Fees/Late Fees Financing Fees GA Voluntary Audit Fee Gratuities Legal Fees Outside Bank Interest Professional Fees Studio Entertainment Work Order Transfers
13 Wrap/Other Party FRINGES (Other) All Categories Same treatment as Production COMPLETION BOND Completion Bond
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