PA Film Tax Credit Freeze

As you may have heard by now, Governor Corbett has instructed the Department of Community & Economic Development to stop accepting applications for the PA Film Production Tax Credit Program. 

Although the budget agreement reached by the General Assembly calls for $60 million in credits to be available, and those credits are against future revenues and do nothing to help the current budget – that is the decision that has been made. 

Like you, I was shocked to hear that he has taken such action and am deeply concerned about the impact that it will have on jobs and revenues in our region.  I support the Film Tax Credit and have long been an advocate for this program.  I have boasted of its impact on our region and state in many forums. 

In the News & Views alone, I have frequently spoken about the productions occurring in our region – and the impact that it has on our economy.  I will continue to voice that message, but I do not have a decision on this issue.  It is solely in the hands of the Governor. 

Although I have asked for more detailed information on why the freeze was imposed, which productions it impacts and when it will be lifted, I have yet to receive those answers. 

In 2009, an independent report on the Film Production Tax Credit showed that it has a high level of multiplier impacts and is in the top 10% of Commonwealth industries.  That report showed that the program has an estimated $58.2 million cost to the Commonwealth in terms of tax credits. 

The industry generates an estimated $17.9 million in additional state and local tax revenues and also produces fiscal benefits of $62.7 million.  For FY 2007-08 (the dates reviewed for the last report), direct spending from the movie industry totaled $267.3 million, the output totaled $524.6 million, wages totaled $146.5 million and 3,960 jobs were created.