Bill Would Stop Film Tax Credit
HARRISBURG – In the face of the Commonwealth's current fiscal woes, Sen. Pat Vance (R-Cumberland/York) has introduced legislation to suspend Pennsylvania's $75 million Film Production Tax Credit program.
Senate Bill 262 prohibits the Department of Community and Economic Development (DCED) from entering into any contracts for the award of Film Production Tax Credits through December 31, 2010.
"In light of the significant budget shortfalls we are facing this year and next, we cannot continue to commit millions for a tax credit that is not cost-effective," Vance said. "A DCED report estimates that $75 million in film production tax credits generates only $18.3 million in new tax revenues.
"The Governor is freezing wages and considering layoffs of state workers, and it would be unconscionable in this environment to continue awarding tax credits to film companies," Vance added. "Failure to suspend this tax credit sends the wrong message about our fiscal priorities."
Vance's district includes all of Cumberland County and Carroll, Fairview, Franklin, Monaghan, Warrington and Washington townships and Dillsburg, Franklintown and Wellsville boroughs in York County.
"Little Chicago" received a $3.5 million state tax credit.
Senate Bill 262 prohibits the Department of Community and Economic Development (DCED) from entering into any contracts for the award of Film Production Tax Credits through December 31, 2010.
"In light of the significant budget shortfalls we are facing this year and next, we cannot continue to commit millions for a tax credit that is not cost-effective," Vance said. "A DCED report estimates that $75 million in film production tax credits generates only $18.3 million in new tax revenues.
"The Governor is freezing wages and considering layoffs of state workers, and it would be unconscionable in this environment to continue awarding tax credits to film companies," Vance added. "Failure to suspend this tax credit sends the wrong message about our fiscal priorities."
Vance's district includes all of Cumberland County and Carroll, Fairview, Franklin, Monaghan, Warrington and Washington townships and Dillsburg, Franklintown and Wellsville boroughs in York County.
"Little Chicago" received a $3.5 million state tax credit.
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