Pennsylvania Film Production Tax Credit
The Pennsylvania Film Production Tax Credit is a tax credit program supporting the production of feature films and television programs in Pennsylvania. The tax credit was signed into law by Gov. Ed Rendell in July 2004.
The tax credit for qualifying productions equals a 25% reduction in Personal Income Tax, Corporate Net Income, Capital Stock/Foreign Franchise Tax. However, because most productions filming in Pennsylvania do not incur a tax liability in the state, the credits are fully transferable, which means they can be sold to a company or individual in the state who does have a tax liability. In order to qualify for the tax credit, the production must incur 60% of its total production expenses within Pennsylvania. The credit also applies to individual television shows that are 15 minutes or longer and intended for a national audience.
Watchdogs, including the Pennsylvania Common Cause criticized lobbyist Leslie McCombs for failing to properly register as a lobbyist for Lions Gate Entertainment while lobbying on behalf of the tax credit.
During the 2009 Pennsylvania budget impasse, the tax credit was in danger of being repealed. Instead, its total amount was reduced from $75 million to $42 million, with that number increasing to $60 million the next year. The tax credit was expanded again during the state budget negotiations in summer 2016. $65 million will be available for fiscal year 2017-18.
The tax credit brought the production of Zack and Miri Make a Porno, The Road, Shelter, Shannon's Rainbow, Sorority Row, and She's Out of My League to the Pittsburgh region in 2008 and 2009. The majority of filming for I Am Number Four also took place in the greater Pittsburgh area in 2010 due to the tax credit.
- "Rendell signs film production tax credit law". Philadelphia Business Journal. July 21, 2004.
- "Film production Tax Credit". September/October 2004, No. 111. Pennsylvania Department of Revenue. 2004-10-25.
- Bumsted, Brad (September 5, 2007). "Lobbyist cites 'oversight' in registration snafu". Pittsburgh Tribune Review.
- "Report: Pa. Film tax credit brings in $4.5 million". Pittsburgh Business Times. American City Business Journals, Inc. June 3, 2009.
- Schooley, Tim (October 13, 2009). "Pennsylvania film tax credit reduced in 2010 budget, but survives". Philadelphia Business Journal. American City Business Journals, Inc.
- Gigler, Dan,(July 13, 2016) "Pennsylvania Senate Expands Film Tax Credit Program by $5 Million", Pittsburgh Post-Gazette.
- Vancheri, Barbara; Owen, Rob (February 21, 2009). "Tax credits could end up on cutting room floor". Pittsburgh Post-Gazette.
- "The East at a glance". Pittsburgh Post-Gazette. May 20, 2010. Retrieved January 14, 2011.
- Yerace, Tom (April 6, 2010). "Vandergrift's architecture lures big-budget film". Valley News Dispatch. Retrieved January 14, 2011.
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