Pennsylvania Film Production Tax Credit
Encyclopedia
The Pennsylvania Film Production Tax Credit is a tax credit
program supporting the production of feature film
s and television program
s in Pennsylvania
. The tax credit was signed into law by Gov. Ed Rendell
in July 2004.
The tax credit for qualifying productions equals a 20% reduction in Personal Income Tax, Corporate Net Income, Capital Stock/Foreign Franchise Tax. In order to qualify for the tax credit, the production must incur 60% of its total production expenses within Pennsylvania. The credit also applies to individual television shows that are 15 minutes or longer and intended for a national audience.
Watchdogs, including the Pennsylvania Common Cause
criticized lobbyist Leslie McCombs for failing to properly register as a lobbyist for Lions Gate Entertainment
while lobbying on behalf of the tax credit.
A 2009 report from the Legislative Budget and Finance Committee in the Pennsylvania General Assembly
found that the tax credit supported 4,000 jobs and produced $4.5 million between 2007 and 2008.
During the 2009 Pennsylvania budget impasse
, the tax credit was in danger of being repealed. Instead, its total amount was reduced from $75 million to $42 million, with that number increasing to $60 million the next year.
The tax credit brought the production of Zack and Miri Make a Porno
, The Road, Shelter
, Shannon's Rainbow
, Sorority Row
, and She's Out of My League
to the Pittsburgh region in 2008 and 2009. The majority of filming for I Am Number Four
also took place in the greater Pittsburgh area in 2010 due to the tax credit.
Tax credit
A tax credit is a sum deducted from the total amount a taxpayer owes to the state. A tax credit may be granted for various types of taxes, such as an income tax, property tax, or VAT. It may be granted in recognition of taxes already paid, as a subsidy, or to encourage investment or other behaviors...
program supporting the production of feature film
Feature film
In the film industry, a feature film is a film production made for initial distribution in theaters and being the main attraction of the screening, rather than a short film screened before it; a full length movie...
s and television program
Television program
A television program , also called television show, is a segment of content which is intended to be broadcast on television. It may be a one-time production or part of a periodically recurring series...
s in Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
. The tax credit was signed into law by Gov. Ed Rendell
Ed Rendell
Edward Gene "Ed" Rendell is an American politician who served as the 45th Governor of Pennsylvania. Rendell, a member of the Democratic Party, was elected Governor of Pennsylvania in 2002, and his term of office began January 21, 2003...
in July 2004.
The tax credit for qualifying productions equals a 20% reduction in Personal Income Tax, Corporate Net Income, Capital Stock/Foreign Franchise Tax. In order to qualify for the tax credit, the production must incur 60% of its total production expenses within Pennsylvania. The credit also applies to individual television shows that are 15 minutes or longer and intended for a national audience.
Watchdogs, including the Pennsylvania Common Cause
Common Cause
Common Cause is a self-described nonpartisan, nonprofit lobby and advocacy organization. It was founded in 1970 by John W. Gardner, a Republican former cabinet secretary under Lyndon Johnson, as a "citizens' lobby" with a mission focused on making U.S. political institutions more open and...
criticized lobbyist Leslie McCombs for failing to properly register as a lobbyist for Lions Gate Entertainment
Lions Gate Entertainment
Lions Gate Entertainment Corporation is a North American entertainment company. The company was formed in Vancouver, British Columbia in 1997, and is headquartered in Santa Monica, California...
while lobbying on behalf of the tax credit.
A 2009 report from the Legislative Budget and Finance Committee in the Pennsylvania General Assembly
Pennsylvania General Assembly
The Pennsylvania General Assembly is the state legislature of the U.S. state of Pennsylvania. The legislature convenes in the State Capitol building in Harrisburg. In colonial times , the legislature was known as the Pennsylvania Provincial Assembly. Since the Constitution of 1776, written by...
found that the tax credit supported 4,000 jobs and produced $4.5 million between 2007 and 2008.
During the 2009 Pennsylvania budget impasse
Pennsylvania budget impasses
The Pennsylvania budget impasse is a series of budget impasses or fiscal crises, the latest of which happened on July 1, 2009. In a budget impasse, the State government can't pass a budget through the General Assembly and so the State can't pay its bills or payrolls.-Background:The Pennsylvania...
, the tax credit was in danger of being repealed. Instead, its total amount was reduced from $75 million to $42 million, with that number increasing to $60 million the next year.
The tax credit brought the production of Zack and Miri Make a Porno
Zack and Miri Make a Porno
Zack and Miri Make a Porno is a 2008 romantic comedy film written and directed by Kevin Smith, distributed by The Weinstein Company, and starring Seth Rogen and Elizabeth Banks. It is Smith's second film not to be set within the View Askewniverse and the first not set in New Jersey. It was...
, The Road, Shelter
Shelter (2009 film)
Shelter is a supernatural horror-thriller directed by Måns Mårlind and Björn Stein, written by Michael Cooney, and starring Julianne Moore and Jonathan Rhys Meyers. The movie is straight-to-video in the U.S. possibly in 2011. -Plot:...
, Shannon's Rainbow
Shannon's Rainbow
Shannon's Rainbow is a 2009 drama and family film both produced and directed by Frank E. Johnson. It stars Julianne Michelle and Claire Forlani, with a musical score by emmy winner Charles David Denler....
, Sorority Row
Sorority Row
Sorority Row is a 2009 American slasher film, and a re-imagining of the 1983 slasher film The House on Sorority Row. It was directed by Stewart Hendler, written by Josh Stolberg and Pete Goldfinger, and stars Briana Evigan, Leah Pipes, Rumer Willis, Jamie Chung, Margo Harshman, Audrina Patridge,...
, and She's Out of My League
She's Out of My League
She's Out of My League is a 2010 American romantic comedy film directed by Jim Field Smith and written by Sean Anders and John Morris. The film has, in its starring roles, Jay Baruchel and Alice Eve, and was produced by Jimmy Miller for Paramount Pictures and DreamWorks and filmed in Pittsburgh,...
to the Pittsburgh region in 2008 and 2009. The majority of filming for I Am Number Four
I Am Number Four
I Am Number Four is a 2011 American teen action science fiction film, directed by D. J. Caruso, starring Alex Pettyfer, Dianna Agron, Timothy Olyphant, Teresa Palmer, Kevin Durand, and Callan McAuliffe...
also took place in the greater Pittsburgh area in 2010 due to the tax credit.
External links
- Pennsylvania’s Film Production Tax Credit and Industry Analysis Legislative Budget and Finance Committee