Film tax credit, once an obscure policy in the tax landscape, has now found itself to be a touted and savvy cost-saving tax strategy. And in Georgia, this lucrative policy has been an effective catalyst in luring blockbuster productions, reshaping the state's economy, and creating high-paying jobs, essentially turning the region into a global contender for film and television work.

At the helm of this transformation is State Tax Incentives and founder, Chrissie Merrill, who has leveraged her vast experience in film tax incentives to build a company that now represents global names. Over the last decade, Merrill has worked on both the buy and sell sides of the market, bridging the gap between production companies with credits to sell and corporate buyers seeking to lower their state tax bill.

Chrissie Merrill, founder of State Tax Incentives
Chrissie Merrill, founder of State Tax Incentives

What contributes to the buyers' appeal of the film Tax Credit is its absolute credibility. Merrill reveals these credits aren't abstract or high risk; they're issued and backed by state government, with oversight from departments of revenue.

That level of regulation brings a layer of security uncommon in other tax strategies. She reaffirms how such veritable backing speaks volumes to its overall utility and benefits. "At the end of the day, it's a state-sponsored cost-saving strategy," she says. "It's safe, it's regulated, and it has a real impact on the economy."

Georgia's film tax credit initiative, passed in 2008, quickly became a model for other states. California, New Jersey, Kentucky, and more have since followed suit to stay competitive.

Providing a 20% base transferable tax credit with an additional 10% uplift for the state's promotional value, the formula of the credit structure is straightforward: Attract productions, stimulate local spending, and generate long-term economic benefits— all while being the ideal vehicle to save Georgia taxpayers money.

Apart from the safety and security attached to the incentive, Merrill points out that film tax credits are a stimulus for staggering economic activity. With competitive salaries for crew members and major film productions, the tax incentive indirectly pumps money into Georgia's local economy, in the restaurants, hotels, catering, transportation, and rental companies, to name a few.

When Merrill entered the field in 2010, awareness was limited. Many CPAs and financial advisors weren't aware of film tax credits. Now, she's witnessed that many savvy firms consider film tax credit not just as an asset, but a requisite. But in smaller cities and across other states, she still sees an untapped opportunity.

The credit's influence on production decisions, Merrill believes, is undeniable. "Hollywood isn't coming to Georgia for its weather, it's coming for the tax savings," she reveals. "If the credit went away, they'd go somewhere else. It's always about the bottom line."

And it's this very bottom line that corporate buyers are paying attention to. Reducing a state tax bill delivers immediate financial value, and in the process, buyers help sustain a thriving economy that fuels thousands of jobs.

Georgia's dominance in the film tax credit landscape now sparks a fierce competition. As other states race to enhance their own incentives, Georgia has tightened compliance measures to protect the incentives from being taken advantage of. And at the center of this operation has been State Tax Incentives. The company has been part of industry coalitions pushing for changes to speed up the audit process, which Merrill divulges is pivotal to keeping productions from moving to other states or countries.

In practice, Merrill's role is part matchmaker, part safeguard. She connects buyers and sellers, holds escrow, ensures contracts are met, and facilitates transfers. "I'm like a realtor for tax credits," she says. "I bring the right parties together and make sure the deal is protective from start to finish."

Merrill's journey also speaks to the value of persistence in a competitive field. As the sole leader of a female-led business in an otherwise male-dominated finance sector, she has built her company without the elaborate degrees, just hard work, trust, and a record of delivering. "You don't need the three letters to succeed," she says. "Just dedication to do what you say you're going to do."

In a marketplace where every percentage point matters, film tax credits have proven they can deliver savings, stimulate economies, and keep states like Georgia at the forefront of the production map. For any business that understands how to use them, they're more than a tax strategy; they're smart money. And for State Tax Incentives, they're the future.