By Jake Armstrong
ATLANTA -- Georgia officials knew they had a problem when cameras for "Ray," the 2004 biopic on Georgia's native son Ray Charles, began rolling in New Orleans.
Film crews had chased lucrative tax incentives to The Big Easy, which made a more attractive filming location than the Peach State.
But legislation Gov. Sonny Perdue signed Monday seeks to change that by more than doubling the tax credits for production companies that choose Georgia -- from Savannah's historic streets to the banks of the Chattooga River -- as the backdrop for their films, TV shows, music videos or video games.
Companies will now get a 20 percent tax credit on productions that spend more than $500,000 in the state, and another 10 percent credit if the production includes a short promotion touting Georgia.
Perdue and other legislators, including House Bill 1100 co-sponsor Rep. Butch Parrish, R-Swainsboro, said upping the ante to draw filmmakers will help pump up the state's economy.
"Where there is a camera, there are jobs and revenue," Perdue said during a signing ceremony on the set of TBS' "Dinner and a Makeover."
Parrish said the out-of-state filming of "Ray" was a sign. "Something needed fixing, and House Bill 1100 will get us back on track," he said.
The incentives could be boon for Savannah, which has seen film activity dwindle as states became more competitive in offering incentives, according to Jay Self, director of the city's Tourism and Film Office.
"You have to have an incentive to be a draw these days. With a level playing field Georgia does very well," Self said.
Activity in the mid-1990s brought between $10 million and $20 million a year in economic impacts, Self said. With no major feature films in town since 2000, he estimated that impact is now around $7 million a year.
So competitive is the market to attract productions that neighboring states are probably already discussing plans to increase their incentives to match the ones Perdue just approved, Self said.
Spending from films and television shows has brought a chunk of change to Georgia.
In 2006, the industry contributed $475 million to the economy, nearly four times the amount it did in 2004, the year before the state began offering a tax credit of up to 17 percent, according to Bill Thompson, deputy commissioner for the Department of Economic Development.
Since the credits took effect, the cumulative economic impact has been $1.17 billion, Thompson said. About 27,000 people are employed by the entertainment industry, he said.
While big-ticket car and income tax cuts did not clear the General Assembly this year, the film tax credit was one of several industry-targeted tax breaks that did pass.
Sen. Regina Thomas, D-Savannah, the only legislator to vote against the film tax credit bill in either chamber, said she did not want to see more money go to companies during economic times that have many residents struggling.
"When you add them all up, you have millions of dollars we are giving away and people are hurting," Thomas said.
Thompson did not immediately know the amount of tax credits awarded since incentives took effect in 2005.
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