The ‘Y’allywood’ Star Turn

Because of its generous tax incentives, Georgia is third in the nation for film projects behind California and New York, and Atlanta has become known as “Y’allywood.” Film production companies sell the credits to fund their projects to Georgia taxpayers seeking a break on their taxes. Transacting the credits is relatively easy, but diligence, planning and detailed accounting are essential to maximizing the value available to the seller. “Y’allywood” also has been a boon to owners of desirable locations. But it is critically important that a property owner carefully examine the “location release agreement” to make sure certain protections are in place so the agreement is not overly favorable to the production company.