tax-incentives
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Georgia passes law giving $25 million in video game tax breaks
Georgia governor Nathan Deal today signed a bill that will grant local video game developers $25 million in tax credits, the Atlanta Journal-Constitution reports. The legislation, part of House Bill 958, will give tax breaks to Hi-Rez Studios, Tripwire Interactive, and other Georgia-native development studios. The state previously courted developers in 2008 with the similar Entertainment Industry Investment Act, which provided a 20% tax credit to local film, TV and game development studios. [Image: City of Atlanta]
Reno city council approves Apple tax break for data center
No big surprise here -- the Reno, NV city council has approved tax breaks for Apple's proposed data center and business / purchasing center in the city. The tax breaks are expected to produce a 79 percent reduction in Apple tax burden, but building the facilities should provide the northern Nevada city with a significant economic boost. Washoe County commissioners approved their part of the deal on Tuesday, giving Apple an 85 percent break on personal property taxes. The 350-acre data center still has a few hurdles to overcome, as the project must go through about a month-long approval process with the Nevada governor's economic development office. If all the approvals go smoothly, construction of the new Apple data center could begin as soon as August of 2012.
Mass. Lt. Gov. wants game tax credits tied to job creation
Massachusetts is the fifth largest state for game industry employment in spite of better developer incentives in other states. Nearly 1,300 industry jobs exist in the Commonwealth, but a recent profile of Irrational Games by The Improper Bostonian covers how the state's grip on gaming could slip if it doesn't step up studio stimulus.A bill for game developer incentives has been floating around the Mass. legislature for about a year, but hasn't gained traction with lawmakers. The state currently provides heavy cuts for the movie industry, despite the game industry pumping more cash into local economies."It's ironic," Irrational Games' director of product development Tim Gerritsen said. "If you look at it, where do you want to put your money? We've got 120 permanent employees. They spend all their money here. They pay their rent here. They pay their taxes here. Do you want Dane Cook? He's here for two weeks doing a film, and he's gone.""When you talk about tax incentives, that's less revenue that you're receiving, so I think any kind of incentive would have to be linked to hard commitments from the private sector," said Lieutenant Governor Timothy Murray, who is coming off a win by keeping PAX East in Boston until 2023. The convention will also make donations totaling $325,000 over the next 11 years to MassDiGI.The state did lose a major studio last year when former Red Sox player Curt Schilling's 38 Studios moved to neighboring Rhode Island for a $75 million loan. The state isn't likely to lose established studios like Harmonix, Demiurge and Turbine. The problem comes founding or incubating new studios without concessions.
Rhode Island pitches a $75M loan offer to 38 Studios
States are always highly competitive when it comes to luring industries to their neck of the woods to bolster the local economy. From movie shoots to auto plants to hospitals, states tend to be shameless in offering incentives and tax breaks to benefit from an economic injection by these companies. It's interesting to see that MMO studios are being courted as well. Worlds in Motion is reporting that Rhode Island is enticing Curt Schillings' 38 Studios to relocate from Massachusetts in exchange for a $75,000,000 guaranteed loan under relief provisions for high-tech companies -- a provision that Massachusetts does not offer. The loan would represent a significant investment for the company, but Massachusetts is attempting to provide reasons for 38 Studios to stay put, including citing that it has better access to talent in the state. As the MMO genre expands and more studios pop up, will we see an increase in states fighting over these companies in an effort to help their economies? In any event, Copernicus' developer now has a difficult decision to make, especially for this ex-Boston Red Sox pitcher.
Move over Austin; Georgia aims to be the next big thing for game studios
When you think of game development meccas, your mind immediately points to Austin or San Francisco, right? You might even think of Seattle, or Boston too, but what about Georgia? That's right, the state most commonly-known for The Dukes of Hazzard, Jimmy Carter and peaches is fast becoming quite a hub for gaming technology and development studios lately.Not only does the state play host to gaming services such as Gametap and lottery giant Scientific Games, but they also house online gaming companies such as Hi-Rez Studios, Cartoon Network's latest online project and the North American divisions of CDC Games and EVE Online's CCP, who recently merged with Georgia's own White Wolf Studios. Electronic Arts operates an R&D lab in one of North America's premiere design schools: Savannah College of Art & Design in Savannah, Georgia. In fact, you may be surprised to hear that Georgia's video game industry is currently 60-companies strong, employing approximately 2,000 game professionals.
