|Posted:||March 3, 2021 02:42 PM|
|From:||Representative Joe Ciresi and Rep. Kathleen C. Tomlinson|
|To:||All House members|
|Subject:||Film Industry Incentive|
|In the near future, we intend to introduce legislation that will re-brand the Film Production Tax Credit as the Film Industry Incentive and increase funding to $125 million, up from the current level of $70 million.
According to the Pennsylvania Department of Community and Economic Development’s 2019-20 Film Production Tax Credit Program Report, since the program’s inception in 2007 through the end of FY 2019-20, approximately 860 applicants have applied to the program and 509 productions have been approved/awarded tax credits. These companies have directly injected nearly $3.3 billion into the state’s economy; generated an estimated $5.2 billion in total economic activity and $785 million in total state and local taxes; and supported an estimated 30,650 full-time equivalent jobs.
Projects across the state have benefited from the Film Production Tax Credit, including Creed (Philadelphia, Delaware), Concussion (Allegheny), Southpaw (Indiana, Washington, Allegheny), Unstoppable (Allegheny, Blair, Beaver, Cameron, Centre, McKean), Home (Lancaster), and I Am Not Okay With This (Fayette). Every filming project attracted to Pennsylvania brings jobs and generates economic activity in host communities, bringing local and state benefits. Film production has economic effects that go beyond the industry, helping local retailers, restaurants, hotels, and other businesses providing products and services during production, in addition to long-term tourism benefits as sites can turn into cultural landmarks.
The downstream economic benefits of film production have heightened competition among states looking to attract film making and the current $70 million tax credit level has failed to keep pace. Because of this, an untold number of film projects – even projects that are set in Pennsylvania but filmed elsewhere – are lost to other states that are enjoying the economic advantages of this industry. Since the state’s current program is capped at $70 million, projects are turned away each year due to lack of funding.
By increasing the cap on the Film Industry Incentive, we are taking an important first step in meeting the demand of the film and television production industry who want to film in Pennsylvania. We know from first-hand experience that these companies want to film in Pennsylvania but right now our program cannot support their efforts. Increasing the Film Industry Incentive will bring more projects to the state and thus a larger economic impact, more jobs, and more revenue to the Commonwealth.
Please join us in support of this effort by cosponsoring our proposal.
Introduced as HB1432