Title
Urging the Pennsylvania General Assembly to adopt House Bill No. 393, which would "uncap" the Pennsylvania Film Production Tax Credit program.
Body
WHEREAS, City Council's Committee on Global Opportunities and the Creative/Innovative Economy held a public hearing on May 12, 2017 on the state of the Philadelphia film industry; and
WHEREAS, During this hearing, all witnesses agreed that while Philadelphia has tremendous potential as a filming location, a significant impediment to Philadelphia's growth in the film industry is the limited availability of tax credits through the Pennsylvania Film Production Tax Credit program; and
WHEREAS, This tax credit, which was implemented in 2007, has an annual cap of $60 million with which to lure film directors and producers. While it has helped Pennsylvania rise to become the 5th-most popular state for total film production, the annual allocation has regularly been exhausted within the first 6 months. It has become an annual routine that 10 or more productions wishing to be based in Pennsylvania go elsewhere due to a lack of available tax credits; and
WHEREAS, On February 8, 2017 State Representative Paul Costa introduced Pennsylvania House Bill 393, which would "uncap" the film tax credit. The advantages of "uncapping" this credit are to give the Pennsylvania Department of Community and Economic Development (which administers the tax credit) the flexibility to fully commit to multi-year productions and to more effectively budget for the program; and
WHEREAS, A report from the State's independent Fiscal Office concludes that uncapping the film tax credit would have significant positive impacts on Pennsylvania's economy with a minimal cost in the coming fiscal year. To date, it has been estimated the state has lost over $1 billion in revenue due to having a capped tax credit; and
WHEREAS, Currently, nine states (Connecticut, Georgia, Louisiana, Massachusetts, Kentucky, Maine, Hawaii, Illinois, and N...
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