Section 1712-D. Credit for qualified film production expenses.
(a) Application.--A taxpayer may apply to the department for a tax credit under this section. The application shall be on the form required by the department.
(b) Review and approval.--The department shall establish application periods not to exceed 90 days each. All applications received during the application period shall be reviewed and evaluated by the department based on the following criteria:
(1) The anticipated number of production days in a qualified production facility.
(2) The anticipated number of Pennsylvania employees.
(3) The number of preproduction days through postproduction days in Pennsylvania.
(4) The anticipated number of days spent in Pennsylvania hotels.
(5) The Pennsylvania production expenses in comparison to the production budget.
(5.1) For a Pennsylvania film producer, the portion of all preproduction expenses, production expenses and postproduction expenses incurred in Pennsylvania. ((5.1) added July 8, 2022, P.L.513, No.53)
(6) The use of studio resources.
(7) If the application includes a qualified postproduction expense:
(i) The qualified postproduction facility where the activity will occur.
(ii) The anticipated type of postproduction activity that will be conducted.
(7.1) If a multifilm production application is submitted, the department shall consider the ability of the taxpayer to produce multiple films within this Commonwealth during the proposed period of production and the potential economic impact, including tourism impact, of the multiple films to this Commonwealth. The taxpayer may supplement the multifilm production application with additional films during the period of production. The department may annually extend the multifilm production application's period of production before the expiration of the period of production. The taxpayer may not include a film in the multifilm production application that was the subject of an application submitted under this subsection before January 1, 2022. ((7.1) amended July 8, 2022, P.L.513, No.53)
(7.2) The film will be produced by a Pennsylvania film producer. ((7.2) added July 8, 2022, P.L.513, No.53)
(8) Other criteria that the Director of the Pennsylvania Film Office deems appropriate to ensure maximum employment and benefit within this Commonwealth.
Upon determining the taxpayer has incurred or will incur qualified film production expenses, the department may approve the taxpayer for a tax credit. Applications not approved may be reviewed and considered in subsequent application periods. The department may approve a taxpayer for a tax credit based on its evaluation of the criteria under this subsection.
(b.1) Review and approval of applications for film production tax credit district activity.--For applications involving film production expenses incurred within a designated film production tax credit district authorized under section 1716.2-D, the department shall accept applications at any time. Applications shall be reviewed by the department utilizing the criteria required under subsection (b). Upon determining the taxpayer has incurred or will incur qualified film production expenses, the department shall approve the taxpayer for a tax credit utilizing the tax credits authorized under section 1716.2-D, not to exceed the amount authorized for the fiscal year. ((b.1 added Oct. 30, 2017, P.L.672, No.43)
(c) Contract.--If the department approves the taxpayer's application under subsection (b), the department and the taxpayer shall enter into a contract containing the following:
(1) An itemized list of production expenses incurred or to be incurred for the film.
(2) An itemized list of Pennsylvania production expenses incurred or to be incurred for the film.
(3) With respect to a contract entered into prior to completion of production, a commitment by the taxpayer to incur the qualified film production expenses as itemized.
(4) The start date.
(5) Any other information the department deems appropriate.
(d) Certificate.--Upon execution of the contract required by subsection (c), the department shall award the taxpayer a film production tax credit and issue the taxpayer a film production tax credit certificate.
(1712-D renumbered from 1703-D and amended July 13, 2016, P.L.526, No.84)
Compiler's Note: Section 24(4)(v) and (vi) of Act 53 of 2022 provided that the addition of section 1712-D(b)(5.1) and (7.2) and the amendment of subsection (b)(7.1) shall apply to fiscal years beginning after June 30, 2022.
Compiler's Note: Section 51(5)(iii) of Act 84 of 2016, which renumbered and amended section 1703-D to 1712-D, provided that the amendment tosection 1712-D, renumbered from 1703-D, shall apply to taxable years beginning after December 31, 2016.
Compiler's Note: Section 42(1.1) of Act 52 of 2013, which amended section 1703-D, provided that the amendment shall apply to tax credits awarded after June 30, 2013.
Compiler's Note: Section 1703-D was renumbered to 1712-D and amended July 13, 2016, P.L.526, No.84.