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COLUMN |
FOR IMMEDIATE RELEASE |
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State Rep.
Nick Kotik |
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June 2009
Pennsylvania's Film Production Tax Credit: 3, 2, 1, don't cut.
Included under the state Senate's budget plan to cut tourism production funding in the 2009-10 state budget is the state's Film Production Tax Credit. Senate Bill 850 would eliminate the tax incentive, leaving no funds available to provide incentives for film crews to set up shop in Pennsylvania.
The credit offers a 25 percent tax credit to film companies that spend at least 60 percent of their production expenses in the Commonwealth. All told, the program is currently capped at $75 million for this fiscal year.
The credit was first established in the 2004-05 fiscal year and to date has been renewed yearly. This year may tell a different story. A debate on the significance of funding the program has been reopened. Gov. Rendell included funding for the program in his budget proposal but the Senate took all of it away in theirs. Recently the Legislative Budget and Finance Committee released a report on a study that looked into the economic impact of the program. I'll let those numbers tell this story.
The report found since the 2007-08 fiscal year:
- The statewide impact was about $525 million.
- The program has generated about $146 million in wages.
- About 4,000 jobs were created.
There are 42 other states that have film tax incentives. If Pennsylvania joins the list of those who don't, would we get passed over by film companies? Would the financial loss be greater if we didn't fund that program than if we did? I think both answers are "yes." I feel that without the program, we stand to lose significant economic benefits that come with these film companies while they are shooting in the state.
The committee's study also pointed out that the film industry in our state has been growing at a faster rate than the overall state economy since 2002. Pennsylvania is blessed with two major cities and landscapes in between that naturally lend themselves to what the film industry is looking for. One small example that impacted the Pittsburgh area is the movie, "My Bloody VaIentine 3-D," which was filmed there mainly because of the tax credit. I feel it would be counterproductive for the entire state to stop these incentives that have kept us moving forward since the program's start.
Pennsylvania has seen its fair share of successful movies: Rocky, Signs, Silence of the Lambs and The Sixth Sense. I think we can make that list even longer provided we continue to offer incentives that make Pennsylvania a desirable place to film.
Finally, when you go to the movies, the cost of your ticket covers your admission, but you never expect to get that money back. Pennsylvania holds the golden ticket for film companies and gets an economic boost in return.
If you have questions or comments, please contact me. As always, you may stop by or call my Coraopolis office at 412-264-4260, or my Carnegie office at 412-429-5091, to talk to me or someone on my staff. I encourage all input on this issue.