This is a continuation of WinGateFilms’ weblog review of panel discussions at the inaugural Philadelphia Film Market on June 23, 2009. Representatives from Entertainment Partners, Marco Cordova and Richard Guay joined with Sharon Pinkenson, Executive Director, Greater Philadelphia Film Office and Christine Peluso, Tax Credits LLC to discuss film production tax incentives. Entertainment Partners, one of the major film production payroll services, also produces the widely used Movie Magic Budgeting and Scheduling professional film production software programs.
According to the April 2009 MPAA report (based on 2007 data), the film industry accounted for 2.5 million American jobs, with an average production position salary of $74,700. Further, the film industry generated over $40 billion in US gross wages, over $38 billion in US vendor payments, $13 billion in income and sales taxes, and a $13.6 billion trade surplus. In this day of decline of US manufacturing jobs, the film business remains a dominant American export industry.
In May, 2009, Economic Research Associates completed a study of the economic impact of the Pennsylvania Film Production Tax Incentive Program for the 2007-2008 fiscal year. For the year studied, the PA film industry generated gross revenue of $524.6 million, creating over 3,950 new jobs, paying $146.4 million in wages, and $62.7 million in state and local taxes, for a net fiscal gain of over $4.5 million.
For the 2007-2008 and 2008-2009 fiscal years, Pennsylvania has provided a 25% film production tax incentive for qualified film and tv projects, including national tv commercials, that spend at least 60% of the budget on qualified PA expenses. The total amount available for tax credits in each year was $75 million.
At the time of this writing, the PA state budget for the 2009-2010 fiscal year has not been finalized, so it is unclear whether this economic development tax incentive program will continue, or even be funded at the same level as the past two years. As the PA film tax credit has been a significant boon to economic development in the Commonwealth, and has made PA oneof the most attractive locations for film production, it is hoped that this program will survive into the 2009-2010 PA state budget.
Michael
WinGateFilms
www.wingatefilms
WinGateFilms' Weblog 