PRINTER'S NO. 745
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
645
Session of
2015
INTRODUCED BY YOUNGBLOOD, SCHWEYER, J. HARRIS, COHEN, KIRKLAND,
V. BROWN, KINSEY, DAVIDSON, THOMAS, BROWNLEE, CRUZ,
DONATUCCI, DAVIS AND McNEILL, FEBRUARY 26, 2015
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 26, 2015
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in film production tax credit, further providing
for credit for qualified film production expenses and for
report to General Assembly and providing for diversity goals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1703-D(b) of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, amended
July 9, 2013 (P.L.270, No.52), is amended to read:
Section 1703-D. Credit for qualified film production expenses.
* * *
(b) Review and approval.--The department shall establish
application periods not to exceed 90 days each. All applications
received during the application period shall be reviewed and
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evaluated by the department based on the following criteria:
(1) The anticipated number of production days in a
qualified production facility.
(2) The anticipated number of Pennsylvania employees.
(3) The number of preproduction days through
postproduction days in Pennsylvania.
(4) The anticipated number of days spent in Pennsylvania
hotels.
(5) The Pennsylvania production expenses in comparison
to the production budget.
(6) The use of studio resources.
(6.1) The promotion and implementation of a diversity
plan in order to ensure diversity and promote the
participation of diverse groups by affording equal access to
employment opportunities pursuant to section 1713-D.
(7) Other criteria that the Director of the Pennsylvania
Film Office deems appropriate to ensure maximum employment
and benefit within this Commonwealth.
Upon determining the taxpayer has incurred or will incur
qualified film production expenses, the department may approve
the taxpayer for a tax credit. Applications not approved may be
reviewed and considered in subsequent application periods. The
department may approve a taxpayer for a tax credit based on its
evaluation of the criteria under this subsection.
* * *
Section 2. Section 1711-D(a) of the act, added July 25, 2007
(P.L.373, No.55), is amended to read:
Section 1711-D. Report to General Assembly.
(a) General rule.--No later than June 1[, 2008, and
September 1 of each year thereafter] each year, the Secretary of
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Community and Economic Development shall submit a report to the
General Assembly summarizing the effectiveness of the tax credit
provided by this article. The report shall include the name of
the film produced, the names of all taxpayers utilizing the
credit as of the date of the report and the amount of credits
approved for, utilized by or sold or assigned by each taxpayer.
The report may also include any recommendations for changes in
the calculation or administration of the tax credit. The report
shall be submitted to the chairman and minority chairman of the
Appropriations and Finance Committees of the Senate and the
chairman and minority chairman of the Appropriations and Finance
Committees of the House of Representatives. In addition to the
information set forth above, the report shall include the
following information, which shall be separated by geographic
location within this Commonwealth:
(1) The amount of credits claimed during the fiscal year
by film.
(2) The total amount spent in this Commonwealth during
the fiscal year by film.
(3) The total amount of tax revenues generated by this
Commonwealth during the fiscal year by film.
(4) The total number of jobs created during the fiscal
year by film, including the duration of the jobs.
(5) The total number of hires and employment offers
made, including data relating to the race, gender and
residence of those hired or offered employment.
(6) All contracting and subcontracting data involving
the taxpayer and minority-owned business enterprises and
women-owned business enterprises.
* * *
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Section 3. The act is amended by adding a section to read:
Section 1713-D. Diversity goals.
(a) Intent.--It is the intent and goal of the General
Assembly that the Pennsylvania Film Office and the department
promote and ensure diversity to enhance the representation of
diverse groups in all aspects of the Film Production Tax Credit
authorized under this section.
(b) General rule.--The Pennsylvania Film Office and the
department shall work with the taxpayer seeking a credit or a
taxpayer under contract to enhance the representation of diverse
groups, employees or business entities utilized under or
associated with production expenses under this section.
Section 4. This act shall take effect in 60 days.
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