Save the PA Film Production tax Credit

HB 1531 is below. The reductions begin on page 158, line 26 of the attached copy of HB 1531 (which has now been signed in the House and Senate).

Here is a breakdown: Film Production - Reduced from $75 million to $42 million in FY 2009-2010 AND to $60 million in FY 2010-2011

The PA Film Commission in Harrisburg has lost its funding. This Commission contributed $100,000 to Pittsburgh and Philadelphia Film Offices. Plus, all WAM (walking around money) has been cut which will also affect the Film Offices ability to attract work to our state.

The Senators who fought against the Film Production Tax Credit fought for Educational Improvement:

Educational Improvement - Reduced from $75 million to $60 million in FY 2009-2010 and to $50 million in FY 2010-2011 (in FY 2009-2010 if valid applications received before October 1, 2009, exceed the limitation, the tax credits are to be made available on a pro-rata basis to all valid applications received before October 1, 2009)

Possible tax credit cuts worry Pennsylvania educators

By JAN MURPHY, The Patriot-News

September 23, 2009, 10:20PM

The future for the Nativity School of Harrisburg and its 34 students looks bleak if funding for the state’s education tax credit program gets cut too deep.

In fact, this nonpublic middle school that serves low-income boys from the city might have to close, said executive director and principal Jairee Counterman.

Through the 8-year-old Educational Improvement Tax Credit program, businesses receive up to a 90-cent break on certain state taxes for contributions of up to $300,000 to approved education organizations to fund scholarships or public education programs. Tax credits are made available on a first-come, first-serve basis and generally are scooped up quickly after the July 1 start of the fiscal year.

According to the state Department of Community and Economic Development, businesses already have applied for all but $4.8 million of $75 million in tax credits that were thought would be available this year.

But that level of funding now seems unlikely.

The $27.9 billion budget deal struck on Friday by Gov. Ed Rendell and legislative leaders of three of the four caucuses includes $39 million in cuts to the state’s $400 million roster of tax-credit programs this year. The deal also calls for $75 million in cuts to the programs next year.

Businesses, too, have come to rely on the program to help fulfill their corporate charitable giving mission.

"Candidly, I believe that there would be less contributions from businesses" from a smaller tax credit program, said Donald Nikolaus, president of Donegal Mutual Insurance Co. of Marietta.

 Senate Republicans and lobbyists said Rendell was pushing for a $20 million cut in the education tax credit program for this year so the cut in the state’s film tax credit would not be as severe. They rejected that. A Rendell spokesman said Wednesday it’s their understanding that the education and film tax credit programs would be cut equally.

Penn National Insurance in Harrisburg, a business supporter of Harrisburg School District, has contributed $2.2 million to education organizations since 2002 through the tax credit program, said vice president for corporate communications Christopher D. Markley. Much of that has benefited the district with a smaller portion going to private school scholarships.

"The EITC program has allowed us to give more than ever before because of the incredibly generous tax advantages," Markley said. "We would view it to be unfortunate if the tax credits were cut."

Patriot-News staff writer David Dunkle contributed to this report.

Please continue to call and call again legislators. Their voting record is below.