Sen. Tom Killion (R-Chester/Delaware Counties) recently introduced legislation to raise the cap on Pennsylvania’s film production tax credit program from $65 million to $125 million.
The program aims to attract movie and TV productions from around the country to boost economic activity throughout the state.
“Our film tax credit program is incredibly successful,” Killion said. “It’s so successful that we have many movie, TV and commercial productions interested in locating here, but we reach the cap on the tax credit shortly after it’s authorized. We’re losing countless job opportunities and tax revenue to other states that have more robust tax credit programs.”
According to the Pennsylvania Department of Community and Economic Development’s 2017-2018 report on the film tax credit, film and TV productions in Pennsylvania generated $4.5 billion in total economic activity from the time the program started in 2007 through last year. These productions also provided approximately $593 million in state and local taxes.
The report also found that the tax credit program has supported 21,000 full-time jobs. The program drew 750 applicants and 478 productions were awarded tax credits through 2018.
Over the past two years, more than 30 projects representing $400 million of investment have gone elsewhere because the program cap had been reached, Killion said. This number does not include productions that the state was not aware of that may have gone elsewhere after the tax credits expired.
“I have repeatedly heard that we’re losing too many important projects to other states that have a higher tax credit cap or no cap at all,” Killion said. “These are missed economic opportunities for us. It’s important to remember that so many jobs and businesses that support film production are impacted by our tax credit. This includes design and carpentry jobs, transportation and vehicle rental businesses, wardrobe-related businesses, food and catering services, lumber suppliers used for the enormous sets that are built for productions, and the list goes on.”