Senator Dodd Supports Expansion of Pennsylvania Production Tax Incentive
FOR IMMEDIATE RELEASE
June 7, 2013
Senator Dodd Supports Expansion of Pennsylvania Production Tax Incentive
WASHINGTON -The Pennsylvania Independent Fiscal Office released an extensive study yesterday, which analyzes the fiscal and economic impact of removing the cap on the Commonwealth’s Film Production Tax Credit Program.
The study found uncapping the credit would reap significant economic benefit to Pennsylvania’s economy, concluding that the “demand for credits exceeds the present supply.” The study projects an increase in tax revenues and in net fiscal impact as a result of an uncapped incentive.
In response, Pennsylvania Senate Majority Leader Dominic Pileggi introduced a bill to do exactly that – “uncap” Pennsylvania’s current Film Production Tax Credit program, which would allow for more flexibility in committing to multi-year productions and greater efficiency in implementing the program. The credit is currently capped at $60 million and eligible productions must spend at least 60% of production expenses in Pennsylvania.
Motion Picture Association of American Chairman and CEO Senator Chris Dodd supported the measure:
“This legislation could not have come at a more opportune time,” said Senator Dodd. “The entertainment industry is on the rise in Pennsylvania and lifting the cap will help it grow much further. Since the Film Production Tax Program was initiated in its current form in 2007, film-related employment in the state has increased by 27% – compare that to film – related employment nationally, which has increased by 0.04% during the same time period.”
There are at least four other states with uncapped film production tax credits, including Massachusetts and Illinois. The MPAA recently commissioned a study of the economic impact of the Massachusetts Film Incentive Program. The Massachusetts study found that since the tax incentive was introduced in 2006, total production employment has increase by 46% from 1,660 jobs in 2006 to 2,380 jobs in 2011. This success story is an example of a significant economic stimulus proved by an uncapped film incentive program.
“Senator Pileggi has the vision to continue the strong growth of Pennsylvania’s film and television industry,” Dodd said. “Incentivizing productions keeps locations like Pennsylvania competitive for thousands of production related jobs, and with those, even more indirect jobs are created as a result of local businesses supporting the needs of film and television productions in their hometowns. Those workers pay taxes, and the productions spend money with local vendors generating millions in economic output. Enactment of this legislation would be giant step in the right direction for the Pennsylvania film and television industry and ultimately, the Pennsylvania economy.”
About the MPAA:
The Motion Picture Association of America, Inc. (MPAA) serves as the voice and advocate of the American motion picture, home video and television industries from its offices in Los Angeles and Washington, D.C. Its members include: Walt Disney Studios Motion Pictures; Paramount Pictures Corporation; Sony Pictures Entertainment Inc.; Twentieth Century Fox Film Corporation; Universal City Studios LLC; and Warner Bros. Entertainment Inc.
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For more information, contact:
MPAA Washington, D.C.
Kate Bedingfield
(202) 293 -1966
Kate_Bedingfield@motionpictures.org