|
|
FOR IMMEDIATE RELEASE |
|
CONTACT: James M. Dawes Communications Director Professional Licensure Committee |
State Rep. Mike Sturla D-Lancaster Majority Deputy Whip Chairman, Professional Licensure Committee |
|
|
|
|
|
|
Sturla’s film tax credit heads to governor’s desk
Neighborhood assistance tax credit also improved
HARRISBURG, July 17 –The state House today passed legislation (S.B. 97) that would provide a film production tax credit proposed by state Rep. Mike Sturla, D-Lancaster, and also improve the state’s Neighborhood Assistance Tax Credit.
In June, Sturla introduced H.B. 1528 to establish a film production tax credit of up to 25 percent of production expenses incurred in Pennsylvania. Sturla’s proposal was amended to include a $75 million annual cap on the credit, expand the eligibility to independent films and create a Film Advisory Board to annually review the effectiveness of the tax credit.
“I know it is easy for critics to bash the idea of giving film companies tax incentives, but they should realize that the film industry generated $218 million in economic development in Pennsylvania in 2004 and $249 million in 2005,” Sturla said. “In addition, there are $500 million in projects waiting to come to our Commonwealth due to the proposed incentives. Do we really want to lose this new revenue and these new jobs to other states like Connecticut, New Mexico and New York?”
According to Sturla, the businesses that profit include hotels, restaurants, dry cleaners, insurance companies, law firms and construction workers. More than 5,600 Pennsylvanians earned $168 million in wages working on films between 1994 and 2004.
“With the film tax credit, we will stand to gain nearly as much revenue in one year as we earned over a decade,” Sturla said.
Under S.B. 97, the Neighborhood Assistance Tax Credit also would be extended to make eligible businesses that pay the Personal Income Tax, partnerships such as LLCs and business trusts, and “S” corporations. This credit would also become transferable and $2 million of the $18 million authorization would be set aside for small business.
“I am glad that the Neighborhood Assistance Tax Credit will be enhanced because Lancaster has always benefited from this vital incentive,” Sturla said. “By increasing the caps and expanding the eligibility pool, we can continue to help neighborhoods in our area and all over Pennsylvania.”
The bill now goes to the governor for him to sign into law.
##jmd/2007/mjh l:\writers\releases\taxcredits.096