There are some states in the US that know the value of entertainment and they’re willing to invest in it. The latest is Georgia, which is about to pass the Music Investment Act to make it more financially attractive for music artists to create in the state. Not only is this piece of legislation intended to lure musicians to Georgia to record and tour, but also keep its home-grown talent from fleeing to other parts of the country like Nashville and Los Angeles.
The bill will provide Georgia’s music industry with tax cuts and incentives similar to the ones the film industry receives, which have proved very successful in bringing major film projects to the area. The proposed incentives are estimated to bring $9 million in net revenue and help spur as much as $2.2 billion of economic activity in the state within five years.
The Georgia Music Investment Act (also known as House Bill 155) has three major components:
- A 20 percent tax credit for live tour origination, meaning music or theater tours that rehearse in Georgia in preparation for a tour. The catch is that that a company must spend at least $300,000 annually in the state before it receives credit, although that can apply to almost any expense that’s connected with the tour. It does not apply to festivals or single performances in the state however.
- A 20 percent tax credit for recording music in the state that will be released for public consumption. A record label or production company must spend a minimum of $70,000 annually to receive the credit, which in the grand scheme of things isn’t all that much.
- A 20 percent tax credit for recording music for films, TV show or video games. A production company must spend a minimum of $150,000 to get this credit, but the catch is that projects that already receive a tax credit from the film industry are not eligible.
The truth of the matter is that sometimes these tax incentives work and sometimes they don’t. Usually when they don’t it’s because the state hasn’t done enough to let the industry know that they exist. It’s unlikely this will happen with Georgia though, as it’s done a great job with its film and television credits already. Atlanta currently has a burgeoning music scene that will only grow larger as a result.