Gov. Deal signs tax incentives bill for gaming industry (Atlanta: 2014, credit)

[Airforceguy]

Gov. Deal signs tax incentives bill - Atlanta Business Chronicle

[LovelySummer]

Great!

[d from birmingham]

12 million per year of taxes not collected. Hope it doesn't bite Georgia in the butt like it did Rhode Island. 38 Studios had a million selling game yet due to development costs typical of a xbox 360 or PS3 game the game actually needed to sell over 3 million copies to break even. Most PS3 and Xbox 360 games don't sell 3 million copies.

This wound up costing Rhode Island over 75 million dollars.

[westau]

Originally Posted by d from birmingham

12 million per year of taxes not collected. Hope it doesn't bite Georgia in the butt like it did Rhode Island. 38 Studios had a million selling game yet due to development costs typical of a xbox 360 or PS3 game the game actually needed to sell over 3 million copies to break even. Most PS3 and Xbox 360 games don't sell 3 million copies.

This wound up costing Rhode Island over 75 million dollars.

38 Studios was given a $75 million loan from Rhode Island. What Deal signed isn't really similar at all and therefore it isn't relevant to this discussion.

[ATLTJL]

Are there any big budget studios in Atlanta that make console games, or just PC and iPhone games?

[d from birmingham]

Originally Posted by westau

38 Studios was given a $75 million loan from Rhode Island. What Deal signed isn't really similar at all and therefore it isn't relevant to this discussion.

12 million dollars less every year according to the story in the OP however other reports are saying it is actually 25 million. That is what it costs Georgia. Does this 12 or 25 million less each year really translate to more revenue over all?

Tax cuts do not pay for themselves. They do not generate extra revenue.

http://politics.blog.ajc.com/2014/04...ank-tax-break/ 200 million in less revenue for Georgia.

Are there any big budget studios in Atlanta that make console games, or just PC and iPhone games?

Tripwire Interactive published Zeno Clash:Ultimate Edition for the xbox 360.

[Newsboy]

Originally Posted by d from birmingham

12 million dollars less every year. That is what it costs Georgia. Does this 12 million less really translate to more revenue over all?

Tax cuts do not pay for themselves. They do not generate extra revenue.

The film and television industry is responsible for more than $3 billion in spending in Georgia during FY 2013. That's $3 billion that, for the most part, would not have been invested in the state without tax incentives.

California and New York, arguably the two biggest entertainment economies in the world, even offer tax incentives for film, television and gaming.

You're not going to win this argument.

[MattCW]

Originally Posted by d from birmingham

12 million dollars less every year. That is what it costs Georgia. Does this 12 million less really translate to more revenue over all?

Tax cuts do not pay for themselves. They do not generate extra revenue.

They can, but you can't paint any of them with a broad brush. I'm a little skeptical if Georgia can attract enough of the gaming industry to make it worth it. The gaming industry is typically centered around places that are attracting young people, and frankly. Georgia is hemorrhaging that segment of the population.

[red92s]

Interesting that this news broke the same day that a local video game developer laid off over 50 staffers.

Game over - Decatur-based CCP lays off 56 - Decaturish

[d from birmingham]

That's $3 billion that, for the most part, would not have been invested in the state without tax incentives.

Funny that cannot be proven. Also that 3 billion didn't translate into increased revenues.

Anatomy of a Murder | The Weekly Standard these film tax credits often don't increase revenue for the state that does them. It often winds up costing the state that does them big.

Film Tax Credits Don't Give States an Economic Boost - US News

"But states are finding that it is barely worth the lost revenue. A recent report by the Massachusetts Department of Revenue found that of the $44 million in tax credits awarded in 2011, two-thirds of the $175 million in spending generated due to economic activity went to out-of-state workers, and 47 percent of the wages generated, or $53 million, went to those earning over $1 million.

On net, Massachusetts' film credit program is costing the state more than it delivers. After subtracting payments to out-of-state residents and the budget reductions required to fund the credits, only $39 million in state economic activity resulted. The findings have prompted Governor Deval Patrick to cap the state's program to $40 million in annual credits."