Late Friday, June 25, the Pennsylvania Legislature passed a $40.8 billion budget. Governor Wolf has stated that he will sign the budget bill, and accompanying budget code bills, before the end of the current fiscal year (which ends on June 30).
Unfortunately, the budget did not provide for an increase to the $70 million Film Production Tax Credit program. Senator Camera Bartolotta publicly expressed her disappointment with the budget outcome in a Post-Gazette article found here.
However, there was language added to the film tax credit program that gives special consideration to “multifilm” production, which is a series of separate and distinct films produced by the same taxpayer over a period of no less than one year and no more than four years from the time application. If an individual film include in a multifilm application is cancelled, the tax credit may be reissued to another applicant only after the Department of Community and Economic Development allows the taxpayer 90 days to apply for an alternative individual film. Senator Wayne Fontana said in a recent press release that the new changes are helpful, but a larger tax credit would mean more jobs and economic spin off.
Some of you may be discouraged that the limit for the film tax credit program was not increased but please remember that there has been tremendous growth in support for the film tax credit within the legislature this year – even during a pandemic. Film caucus leaders advocated both publicly and privately in support of our cause and their efforts, along with yours, have not gone unnoticed. We encourage PAFIA members to continue to engage with legislators regarding the importance of increasing funding for the film tax credit. Whether is it meeting with legislators one on one in their district offices, inviting them onto sets, or posting on social media how the film industry is thriving in PA, please do not stop having conversations with elected officials. We can use this opportunity to grow our collective voices even more.
With the passage of the state budget, the PA Legislature has started their summer recess. This is an opportunity for members to spend some time in their districts and to work on issues in preparation for returning to session in the fall. Unless sooner recalled by their respective chambers, the PA Senate will return to session on Monday, September 20 and the PA House will return to session on Monday, September 27.
More information on the budget
Earlier this year, Pennsylvania was allocated $7 billion in funds from the American Rescue Plan (ARP) which had gone unspent until this budget. Of those dollars, $4 billion will go towards balancing this year’s budget and more than $2 billion has been set aside for the Commonwealth’s rainy day fund. All in, factoring in offline spending through federal CARES Act funds and American Rescue Plan funds, the FY 2021-22 budget grew just 2.6% over the current 2020-21 budget.
Highlights of the General Fund Budget
SB 255 – Appropriations Bill
An additional $416 million in education funding - the largest single-year education funding increase in state history:
Highlights from each code bill
HB 1348 – Fiscal Code
HB 952 – Tax reform Code
HB 336 – Administrative Code
SB 381 – School Code
Pennsylvania Film Industry Association (PAFIA)461 Cochran Road, Box 246Pittsburgh, PA 15228(717) 833-4561 firstname.lastname@example.org