|Posted:||June 2, 2015 02:31 PM|
|From:||Representative Paul Costa|
|To:||All House members|
|Subject:||Legislation to Broaden Availability of Film Tax Credit|
In the near future I plan to introduce legislation which will broaden the availability of the successful Pennsylvania Film Production Tax Credit program. This legislation is the House companion bill to Senator Pileggi’s Senate Bill 585.
This legislation would "uncap" the film tax credit. The advantage of "uncapping" this credit is to give the Department of Community and Economic Development the flexibility to fully commit to multi-year productions and to more effectively budget for the program. Even with an "uncapped" program, the General Assembly would need to budget for the estimated amount of the credit in each fiscal year.
A report from the Independent Fiscal Office, concludes that uncapping the credit would have a significant positive impact on Pennsylvania’s economy with a minimal cost in the coming fiscal year. To date, it has been estimated the state has lost over $1 billion in revenue due to having a capped tax credit.
Currently nine states, (Connecticut, Georgia, Louisiana, Massachusetts, Kentucky, Maine, Hawaii, Illinois, and North Carolina) have uncapped film production tax credits. As a result, many of those states 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.
This legislation will also grant an additional five percent credit for post-production work completed in Pennsylvania at a post-production facility with at least 10 permanent, full-time employees who live in Pennsylvania. Similarly, it would also provide a tax credit for videogame production conducted in the Commonwealth at a facility with at least 10 permanent, full-time employees who live in Pennsylvania.
I hope that you will join me in co-sponsoring this important piece of legislation. This legislation will be similar to House Bill 1592 from the 2013-14 legislative session. Thank you in advance for your support.
Introduced as HB1448