How the Film Industry can Drive an Economy: The Impact of the PA Film Tax Credit
Since July of 2007 the state of Pennsylvania has extended a tax credit program to film productions
that film primarily within the state. The program offers a 25% transferable tax credit to films
intended for theatrical release that spend at least 60% of their total production budget in the
Commonwealth. As of this fiscal year, the total program is capped at $75 million; however, there is
no cap on how much an individual project can receive.
According to Economic Research Associates, since its inception the Film Tax Credit program has had a
positive economic impact to the state of over $524 million dollars, and has been responsible for
creating and sustaining over 3,900 new jobs here. Furthermore, these jobs have generated $146.4
million in wages.
Recently, the Film Tax Legislation has come under attack by some who question the positive economic
benefits of the program. To discuss the viability of the program, a series of open community forums
were held throughout the state. During these forums, business owners and individuals who have felt
true economic benefit through the opportunities created by this program were allowed to speak and
tell their stories. During the forum, the committee of state officials in attendance heard from
film professionals who were able to practice their craft, vendors who were able to sustain their
businesses, and young people who were able lo live and find employment in an area they want to live,
all because of the creation of the tax credit program.
The facts are quite clear that since the creation of the program, within the Southwestern
Pennsylvania region alone, there has been an immensely positive impact:
There have been 11 feature films or television productions filmed in the region.
IATSE (The International Association of Theater and Stage Engineers) Local 489 doubled its
membership since July 2007.
25,000 hotel room nights have been booked in local hotels - that's up over 800% since 2005.
Car rentals are up over 250%.
As the debate continues within the state legislature as to the viability of the Film Tax incentives,
we encourage all who are interested in learning more about the program, or those who are interested
in showing support for the program, to check out the sites below for further information.
To learn more about this project or to contribute to our fundraiser you can contact us at
info@steeltown.org.
To see a video produced by local studio Mogul Mind is support of the Film Tax Credit,
click here.
