|Posted:||December 1, 2020 12:08 PM|
|From:||Senator Wayne D. Fontana|
|To:||All Senate members|
|Subject:||Uncapping the Film Production Tax Credit|
In November 2019, Democrats in the House of Representatives held a hearing on Pennsylvania’s Film Production Tax Credit. During this hearing, it was repeatedly stated that the commonwealth continues to lose out on dozens of film and tv productions each year because of the state’s cap of $70 million. Instead the industry is encouraged to go to Atlanta or Los Angeles, where there is no cap.
Since the Film Production Tax Credit inception in 2007, Pennsylvania has approved $812 million in tax credits which has resulted in a total economic impact of $3 billion. However, there are only enough credits to accommodate half-dozen large productions annually, and the credits are usually allocated in the first months, so producers can’t count on the credit being there for them year after year. Compare that to Atlanta’s economic impact of $9.5 billion, it is no secret that the lack of increase in funding have stunted the state’s ability to not only attract the industry but to also grow on a national scale.
With Americans being at home more than ever and looking towards streaming services for their entertainment, now is the time for Pennsylvania to uncap our Film Production Tax Credit. Not only would this allow for the industry to set up in our state, but also settle here long-term with their families. These are valuable dollars that could be going towards struggling small businesses in our local communities during these very difficult times.
For this reason I plan to once again reintroduce my bill to uncap the film tax credit and give the industry as incentive to relocate to Pennsylvania. TV and film production has a proven track record of investing additional funds into the commonwealth’s economy not to mention the thousands of jobs it has created.
I hope you will take this opportunity to welcome additional growth in our state’s economy by co-sponsoring this bill. Last session, SB 816’s co-sponsors included Senators Collett, Costa, Brewster and Bartolotta.
Introduced as SB133