Special to SEGAZINE
The United States is not the manufacturing powerhouse that it once was, but video games are one thing that Americans make that people all over the world still buy.
This week, Georgia Gov. Nathan Deal R signed a bill into law that will provide $25 million in tax breaks to game developers in an effort to encourage economic development in the southern state. The law, previously known as House Bill 958, passed the Georgia state House and Senate earlier this year. It also includes a number of other tax-related legislation including sales-tax holidays and exemptions from sales taxes for qualifying food banks. Georgia-based developers that may benefit from the law include Cartoon Network Games, Red Orchestra developer Tripwire Interactive, and Smite developer Hi-Rez Studios.
To take advantage of the tax incentives, developers will have to maintain offices within Georgia. Studios must have a total payroll that amounts to more than $500,000 for in-state employees and gross no more than $100 million in taxable income. Georgia’s Department of Economic Development must also approve that any developer attempting to claim the credit is primarily in the interactive-entertainment business.