While the temperatures outside are dropping, things are starting to heat up with the new session.

On Tuesday, January 15th, the Governor and Lieutenant Governor were each sworn in, which marks the beginning of a 4 year term for the new Lieutenant Governor and a second term for Governor Wolf. THe Inaugural party was held that evening at the Farm Show, and thousands of supporters enjoyed the party.

House and Senate leaders have announced Committee Chairmen and are starting to announce members of the committees. The House and Senate will be in session January 28-30, then again February 4-6, with the Governor providing his annual budget address on Tuesday, February 5th. The House and Senate will adjourn for more than a month for Appropriations Hearings. The House returns on March 11th and the Senate on March 18th.

On January 24th, the House and Senate hosted a joint hearing with the Performance Based Budget Board, where the Independent Fiscal Office presented its findings on three tax credit programs, including the film tax credit.

The IFO report provided the following recommendations:

• Policymakers need to establish explicit goals and objectives. A moderate tax credit can incentivize mobile productions to film in the state, but a much larger credit is necessary to attract long-term investment.
• The tax credit should be targeted more towards workers who reside in the state. That will increase the multiplier effect of the tax credit and the economic impact.
• The credit should be made refundable. The fees and discounts charged by third parties represent leakage and do not contribute to the economic output of the industry.
• Policymakers should consider different allocation pools for television and film productions. A separate allocation pool might also be used for small, independent productions.
• A temporary higher credit could be offered to television productions that relocate to the state.

Please share any questions or concerns with PAFIA at info@pafia.org