Proposal would boost tax credits to $125 million to attract more film, TV production to Pennsylvania
(The Center Square) – In a move they say would create jobs and drive revenue, Pennsylvania state Reps. Joe Ciresi, D-Montgomery, and Kathleen Tomlinson, R-Bucks, have introduced legislation aiming to entice more film and TV companies to produce projects in the state.
House Bill 1432 would rebrand the Film Production Tax Credit as the Film Industry Incentive and increase funding, providing more incentive for film and TV productions to come to Pennsylvania.
As a first step toward meeting industry demands, the bill would increase the cap on the Film Industry Incentive in Pennsylvania from $70 million to $125 million.
“Film production has economic effects that go beyond the industry,” Ciresi said in a news release. “Local retailers, restaurants, hotels and other businesses that provide products and services during production benefit, while there are also potential long-term tourism benefits as sites can turn into cultural landmarks.”
In a memo to their fellow lawmakers seeking support, Ciresi and Tomlinson wrote that Pennsylvania is increasingly losing out to other states with more generous incentives.
“The downstream economic benefits of film production have heightened competition among states looking to attract film making and the current $70 million tax credit level has failed to keep pace,” they wrote. “Because of this, an untold number of film projects – even projects that are set in Pennsylvania but filmed elsewhere – are lost to other states that are enjoying the economic advantages of this industry. Since the state’s current program is capped at $70 million, projects are turned away each year due to lack of funding.”
A 2019 review of the existing film production credit found that unlike some other tax credits offered by the state, the filmmaking incentive was generating positive results for the state’s bottom line. Independent Fiscal Office Director Matthew Knittel called it a “net economic gain” during a discussion with lawmakers at the time.
Analysts with the free-market Commonwealth Foundation, however, have denounced the tax break as a “corporate welfare program.”
The bill was sent to the House Finance Committee for further review.
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