PA Film Tax Credit Program
Summary of the PA Film Tax Credit Program
Credit Dollars Available
- For each fiscal year, beginning with the fiscal year of July 1, 2012 through June 30, 2013, and ending with the fiscal year of July 1, 2015 through June 30, 2016, the total credit dollars available per fiscal year is $60 million.
Film Tax Credit
- Equal to 25% of all qualified Pennsylvania production expenses for the project.
- A feature film, television film, or television series project that is intended for a national audience and films in a “qualifying production facility” which meets minimum stage filming requirements, is eligible for an additional credit in the amount of 5%.
- Sellable/Transferable for use against personal income tax, corporate net income tax, capital stock and franchise tax, bank shares tax, or insurance premiums tax.
Qualifying Projects
- Feature films
- Television films, talk or game show series, or commercials
- Television pilot or each episode of a television series intended for a national audience
Non-Qualifying Projects
- Productions featuring news, current events, weather and market reports
- Public programming
- Sports events, award shows, or other gala events
- A production that solicits funds
- Productions containing obscene material or performances
- Productions primarily for private, political, industrial, corporate, or institutional purposes
Eligibility Requirements
- A minimum of 60% of the project’s total production budget must be used for qualified Pennsylvania production expenses.
- Projects already completed at the time of application are NOT eligible.
- Projects already with a Film Tax Credit Contract may NOT submit a revised or new application for additional film tax credits for the same project.
Qualifying Expenses
- Salaries and wages earned in Pennsylvania and subject to Pennsylvania taxation up to a cap of $15 million in total for above the line services provided by principal actors.
- Music and story rights if acquired from a Pennsylvania resident or entity subject to Pennsylvania taxation.
- Costs of production operations incurred in Pennsylvania such as construction, photography, visual effects, lighting, editing, sound synchronization, wardrobe and accessories, food and lodging, and fringe benefits.
- Cost of rental of facilities and equipment from a Pennsylvania taxpayer.
- Cost of insurance coverage purchased through an insurance agency based in Pennsylvania.
- Costs of travel to, from, and within Pennsylvania.
- Costs of shipping to, from, and within Pennsylvania, including overnight delivery services.
- Fees for production services, including pre- and post-production services.
- Production related services such as legal and accounting fees paid to a Pennsylvania taxpayer when all or substantially all of the services are actually performed in Pennsylvania.
Marketing Requirements
- Inclusion of an acknowledgement of the support of the PA Film Office and applicable regional film office with the production’s end credits.
- Placement of the PA Film Office logo on all packaging material and hard media.
- Placement of a 30 second visitPA promotional video on all optical disc formats of a film.
- Submission to the PA Film Office of various promotional materials such as production photos, posters or other marketing materials, and electronic press kits.
Application Submission Items
- Film Tax Credit Application
- Budget Top Sheet
- Verifiable documentation that 70% of financing for the project has been secured and the remaining 30% will be secured prior to the planned start of principal photography in Pennsylvania
- Copy of the script
- Single Application (must be submitted electronically)
- IF the project has a total production budget in excess of $1 million, an application fee of .2% of 25% of the estimated expenditures in Pennsylvania (i.e. .2% of the estimated film tax credit amount), not to exceed a total fee of $5,000.
The information provided in this summary is intended to be a general overview of the Pennsylvania Film Tax Credit. More in depth details may be obtained by contacting one of our team members at (412) 321-9000.
For instructions on how to register a business, visit Registering a Business in PA
