Production Companies to Continue Shooting Movies, TV Shows, Commercials in PA with Film Tax Credit's Preservation

Production Companies to Continue Shooting Movies, TV Shows, Commercials in PA
with Film Tax Credit's Preservation

Budget Agreement Extends Film Tax Credit through 2010-11

HARRISBURG, Pa., Oct. 15 /PRNewswire-USNewswire/ -- Pennsylvania's film tax
credit program, which has helped to generate hundreds of millions of dollars
in revenue and create thousands of jobs, will continue through 2011 under the
newly-enacted state budget.

"Preserving this tax credit is great news for Pennsylvanians who are working
now in movie and television production, and it signals our commitment to
continue the film tax credit for at least the next two years so we can create
more jobs and attract more investments to communities throughout the state,"
said Jane Saul, director of the Pennsylvania Film Office under the Department
of Community and Economic Development.

The 2009-10 budget that Governor Rendell signed into law Oct. 9 includes $42
million for the film tax credit, and $60 million in 2010-11.

"The level of available tax credits this year reflects the fact that this
program has proven to be successful," said Saul. "It's brought new productions
to Pennsylvania, which creates work for hotels and restaurants that serve the
film crews, for construction firms that build sets, for film editors and
special effects artists, and for a host of other businesses in communities
large and small across the state. We recognize that difficult choices had to
be made because of the economy, but are pleased that this program will remain
a part of our efforts to create new economic opportunities across the state."

An independent study of Pennsylvania's film tax credit by the Legislative
Budget and Finance Committee found that the program paid for itself in the
first year of its existence (2007-08) by generating $524.6 million in total
statewide economic impact, $17.9 million in state and local taxes, and 4,000
new jobs. The total value of wages from those jobs was $146.4 million.

A copy of the analysis is available at lbfc.legis.state.pa.us by clicking on
"Reports Released" on the left side of the page and scrolling down to the
"Business, Insurance, and Economic Development" section.

The film tax credit has helped to bring major motion picture producers to the
state, such as 20th Century Fox, which is in north central Pennsylvania
filming "Unstoppable," starring Denzel Washington. Other major movie
productions are also in southwestern Pennsylvania, including "Love and Other
Drugs," starring Anne Hathaway and Jake Gyllenhaal; and "The Next Three Days,"
starring Russell Crowe.

Pennsylvania's film tax credit is an incentive for production companies to do
business in the state. To receive the credit, which is the equivalent of
getting a 25 cent offset in taxes paid for every dollar spent, at least 60
percent of a production's budget must be paid out in Pennsylvania and verified
by an independent auditor.

Projects eligible for the film tax credit include the production of a feature
film, a television film, a television talk show or game show series, a
television commercial, a television pilot or each episode of a television
series intended as programming for a national audience.

For more information, visit www.newpa.com.

Media contact: Jane Saul, 717-783-3456

SOURCE Pennsylvania Department of Community & Economic Development

Jane Saul of the Pennsylvania Department of Community & Economic Development,
+1-717-783-3456