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State study supports film tax credit program
Wednesday, June 03, 2009

HARRISBURG -- A legislative report was released today on the Rendell administration's film tax-credit program, showing a net revenue gain of $4.5 million for state and local governments and an influx of jobs and industry spending over the past few years.

First enacted in fiscal year 2004-05, the $75 million in tax credits for film makers has been questioned by some legislators in recent years. A Senate-passed measure, Senate Bill 850, would target the tax credit for repeal this year as the state faces a projected revenue shortfall of $3.2 billion by June 30.

The Legislative Budget and Finance Committee contracted an independent firm, Economic Research Associates, to prepare the study on the film tax credit. It said the program generates $146.4 million in wages and supports more than 3,950 jobs in the state, with a statewide economic impact of $524.6 million.

The tax credits go to film companies that spend at least 60 percent of their production expenses in the state.

A public hearing on the film tax credit will be held at 1 p.m. Friday at the David L. Lawrence Convention Center in Pittsburgh. It will be held by the state House Tourism and Recreational Development Committee, whose chairman, Rep. Thaddeus Kirkland, D-Delaware, is opposed to Senate Bill 850.

Besides eliminating the film production tax credit, the bill also would cut tourism promotion funding. Mr. Kirkland thinks that would hurt the state's economy.

Nick Pipitone is an intern with the Pennsylvania Legislative Correspondents Association.
First published on June 3, 2009 at 2:16 pm
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