by Tim Schooley, Pittsburgh Business Times

Gov. Corbett's proposed budget calls for film tax credit to continue

Pittsburgh Business Times - by Tim Schooley


Advocates of Pennsylvania's film tax program were relieved to hear that new Pennsylvania Gov. Tom Corbett has called for it to be continued in his proposed budget for 2011-12.

Corbett's budget noted that the credit "has helped to foster a growing film industry presence in Pennsylvania" and just under 4,000 jobs were associated with the industry.

Dawn Keezer, executive director of the Pittsburgh Film Office, was eager to see the new governor broadcast his broad approval for the program based on its economic benefits and is hopeful the program will make its way through approval in the legislature.

"It's vitally important for the governor to send out his pro tax credit message today," Keezer said. "Pennsylvania is still open for business. We still want and value the industry."

The governor's budget proposes $60 million for the film tax credit, less than the $75 million peak it had a few years ago, but a level of credit that's still competitive.

Pennsylvania isn't the only state to consider budget cuts to its film tax credit program. Former Gov. Bill Richardson wrote an op-ed in the New York Times last weekend decrying potential cuts in the program in New Mexico.

Keezer said to expect major reductions in Michigan¹s program, which had offered a 42 percent refundable tax credit.

"I've been getting phone calls from people saying, 'I'm moving out of Michigan. What does your program look like?" Keezer said.

Still pressing is for the tax credit program to have its funding freeze lifted so as many as four new film projects can move forward, she added.

Michael Dolan, a principal of Island Studios, a sound stage facility in McKees Rocks, which has hosted a number of Hollywood productions in recent years, expects the announcement will help to green-light a host of new films to be produced here this year after a few years of strong film production activity.

"There are a couple of films waiting on the doorsteps to come in. I think this will be a great catalyst," he said. "It's a shingle saying we're open for business."

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