by PA State Rep. Paul Costa

June 15, 2010

Pennsylvania needs Film Tax Credit

By Rep. Paul Costa



The glamour generally associated with the film industry disguises the fact that "making movies" is a business. However, it is a $1.4 billion dollar industry and the film tax credit may be one of the solutions to help Pennsylvania's economy recover and thrive.


The return on investment (ROI) for the film industry is in the top 10 percent of all industries in Pennsylvania. Currently 41 states offer some form of a film tax credit program and ours has become the standard.


According to the Legislative Budget and Finance Committee, in 2007 the motion picture industry revenues in Pennsylvania reached $948 million and generated economic impact of nearly $1.9 billion.


Independent local auditors have confirmed that film productions have spent $378 million in Pennsylvania since 2007, when the program was created. Of that amount, $100 million went directly into southwestern Pennsylvania's economy. If you add the economic benefit of those productions and the three-year economic effect of the film tax credit in southwestern Pennsylvania alone you will see that is a total of nearly $200 million. To put that in perspective, that is more than all cumulative film production in the region from 1993-2006.


Local vendors that supply everything from lumber to catering services have seen business increase. In 2009, hotels in southwestern Pennsylvania reported more than 30,000 room nights because of the film industry. When one actor hosted three parties at a local restaurant, that restaurant claimed that they made more on those three private parties than they usually do in six months of nightly business.


The out-of-town crews who basically live in our region for months at a time spend their own money in our state! They shop, go to movies, rent cars, buy gas, and entertain themselves.


Pennsylvania requires a full audit before issuing the tax credit for each production company. Once the audit is complete, and the production shows the money was actually spent in the Commonwealth, a certificate is issued for the tax credits.


LBFC Report stated it quite succinctly, "a competitive film production incentive for film producers can be considered the 'price of admission' . . . for such activity." Let's continue to roll out the red carpet for this industry in the form of a tax credit.



State Rep. Paul Costa is also a board member of the Pittsburgh Film Office.