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Senator Pileggi to introduce bill to 'uncap' film production tax credit

06/12/2013 06:11PM, Published by ACL, Categories: In Print, News, Opinion



Senate Majority Leader Dominic Pileggi (R-9) has announced that he will introduce legislation to “uncap” Pennsylvania’s successful Film Production Tax Credit program, allowing it to be used more efficiently to create jobs.

“The film tax credit has created an industry in Pennsylvania,” Sen. Pileggi said. “Establishing an ‘uncapped’ program here, as about a dozen other states have done, will allow us to take full advantage of the program’s potential.”

With an “uncapped” credit, Sen. Pileggi said, the Department of Community and Economic Development will have more flexibility to commit to multi-year productions and will be able to more effectively budget for the film tax credit. The General Assembly would continue budgeting the estimated amount of the credit in each fiscal year.

Other states with an “uncapped” credit have seen a significant increase in the number of film and television productions in the state, along with a corresponding increase in the number of film-related jobs.

A detailed report from the Independent Fiscal Office, released today, concludes that “uncapping” the film tax credit would have a significant positive impact on Pennsylvania’s economy with a minimal cost in the coming fiscal year.

The program, created in 2004, encourages film and television production work to be done in Pennsylvania. To qualify for a credit, a production must incur at least 60 percent of its production expenses in Pennsylvania. The amount of the credit is equal to 25 percent of qualified production expenses.

Recognizing the growing importance of digital interactive media, such as video games, and the need to support the growing number of Pennsylvania businesses creating jobs in the film and television industries, Sen. Pileggi’s bill will also create a tax credit for video game production done in Pennsylvania, and provide a new incentive for film and television post-production work to be done in Pennsylvania.


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