On behalf of the hotels, restaurants, caterers, multiple stores, transportation, teamsters, crew, and actors, to name a "few", this tax credit is hardly "special treatment and preference given to friends or colleagues, especially in politics", Mr. Tannenwald!! This is a boost to the cities, and surrounding areas, that far exceeds your tunnel vision!! We just lost another big film to Boston, where they seem to understand the benefits outweigh the negative dollars. And it seems to be a popular trend right now to fire up the crowd with the threat of loss of funds to education. Let's see those real numbers, Mr.Tannenwald.

The film incentive program was created to promote the growth of film industry in PA; an industry that would provide new jobs, encourage our dwindling young population to stay in PA, provide income for locally owned businesses (hotels, building suppliers, car rentals, etc), and promote tourism. In the past 7 years it has thrived, and more than proved it worth. The current problem we are experiencing is because it worked better than we could imagine, but $60 million is no longer enough to sustain this lucrative new Pennsylvania industry.

Seven years ago PA and Georgia's film industry were identical in size. Both introduced Film Incentive Programs, and began to grow and see a return on their investment. The difference between the two is that PA's (which started at $75 million) is currently capped at $60 million, while Georgia is uncapped. Georgia is now pulling in 1.3 billion dollars in revenue, and creating new jobs both directly and indirectly connected to the industry. They are reclaiming abandoned property and revitalizing areas that are suffering economically. There is also a thriving infrastructure of studios & industry related businesses opening up every year.
We could have the same success, we have proven the program works, we don't want to throw that away.
We have a choice to make now--do we let another great industry slip through our fingers or do we want to commit to growing a program that could bring in billions in revenue to Pennsylvania and its residents?

Ok, folks, I'm not particularly good at math but this doesn't seem that difficult to understand. The benefits of a healthy economy benefit everyone. The money generated by films in our city reaches a myriad of businesses which pay taxes on that income. Less work means less income - so fewer taxes collected. Also, if there is no work here, or not a reasonable amount to support people, they will go elsewhere to find work to support their families...which means they will put their houses on the market, leave the city and there goes that tax revenue.
I recently moved from Atlanta - a city that has removed the cap on their film credits and is enjoying a filming boom. I own a small restaurant which was positively impacted by film crews in the area - catering, an increase in traffic at our restaurant - as were other nearby business: the hardware store, rental realty, hotels, promotional materials manufacturers, antique stores...Not to mention the shear power of word-of-mouth referrals. People return where they get good value and good service.
It's time to step up people - bringing enterprises that generate income with a ripple effect is smart business. Offer an incentive that will bring in billions of dollars in revenue.

In a state cutting actual services like schools (7 schools have closed and are being sold in the Pittsburgh area alone) it's rather funny to me that there is even a question in whether or not to incentive millions in revenue. In what state do you think you preside ladies and gentleman of the PA congress? You spend hundreds of millions on nonsense highway expansion where it's not needed, you incentivize suburban sprawl THROUGH TAX CREDITS that essentially plunders revenue with every extended foot, and you--like almost every state-- face skyward debt, deficit, and a pension problem that could sooner make me cringe than make me feel optimistic-- AND STILL you debate and then squash millions and millions in actual revenue. Quite frankly, you ought to be ashamed. You obviously didn't listen to the voices of your constituents who loudly spoke out about your poor dealing in the film tax credit debate. You obviously did not do a single bit of research--now wonder problem is the norm not the exception. In a state that quite literally privitazed highway service vehicles to State Farm, why don't you get on board with helping the already privitazed private sector grow and stay healthy! What you call uncertainty, I call millions of dollars leaving this state for other states. We live in a world that is driven abundantly by incentive. The PA legislature just let other states out-incentivize us, robbing us of jobs and revenue. We can't afford to come in 40th place.

Scott Sullivan, Pgh

This is the biggest "no brainer" common sense job and revenue creater for the state,period. (explains why politicians don't get it) The revenue created from the film tax credit is extraordinary and benefits ALL Pennsylvanians. People need to understand that it is simply a tax reduction.....no actual tax dollars are going to the film companies,and in return the state and the people of PA are getting a HUGE return on the incentive. The "temporary jobs" are temporary only because the tax credit has a cap. I know of at least 10 productions that went to other states because of a dried up and out of touch tax credit in Pa. Many families,including mine,rely on the film industry as a new source of jobs and income. I have employed over 25 people with full time jobs and income on just one production. Pa can not afford to not expand the tax credit.....especially with the enormous revenue and benefits if produces. This credit needs expanded NOW!

Tannenwald's 3-year-old quote is clearly outdated regarding "some" people receiving benefits from the film tax credit. PA film productions have offered broad benefits to vendors, hotels, and other service providers and even little guys like me. Film is a GROWING industry in Pennsylvania, and we need to have our tax incentive raised to be able to compete with other states offering higher film tax credits.

On a personal note: before we reach the cap each year, there are thousands of PA residents who are crew members working 12-18 hour days, 5-6 days a week for great pay. We pay our taxes, we buy houses, we start side businesses, we have children, we spend our money in PA Businesses, and we put down roots and want our community to thrive. Now that we are not working we are forced to turn to unemployment to pay our bills or we can leave the state for other film jobs. Either way PA does not get our money. With Corbett's changes to unemployment, most of us are being turned down so unemployment is not an option.

Not only are we loosing out, but the countless PA business we buy from are too. Movie companies hemorrhage money all over the place while they are here. We buy building supplies, food, water, rent picture cars, rent hotel rooms, buy 40 pizzas to feed the crew at 2 am, we buy set dressing & props, paint & plaster, we rent trucks has anyone ever driven by Haddad's in the South Hills of Pittsburgh just before a movie starts?

I want to stay in Pittsburgh, I love Pennsylvania--I do not want to be forced to leave, I want to work and I want to see my friends and neighbors succeed too.

Capping an incentive defeats the concept of incentive. What would you do if you went to Bed Bath and Beyond with your 20% off coupon only to be told, "I'm sorry that's no longer valid the person in front of you spent 200 dollars and we've reached our cap." Would you say, "That's ok you guys have such great stuff, I'll just go ahead and check out and pay full price"? Hell, no, you'd drop your purchases on the counter and go shop at Target. This is a great state to film it has fantastic locations, experienced crew base and wonderful support companies but if another state is offering a better 'coupon' the producers head there instead.
The state doesn't lose money by offering the incentive, no more than Bed Bath and Beyond loses money by offering 20% off. They make money; it gets people in the door. Once a movie company is here they do spend a lot of money, Money that they'll spend in another state if they have a better incentive. We're not paying them to come; we're offering them the opportunity to pay less in taxes. Taxes that they won't pay at all if they are not here in the first place.
I do a lot of work in Atlanta. Yes, I have to pack my bags and spend my money in another state because there is more film work there. They didn't use to make more. They were comparable to Pittsburgh, then they removed the cap and the money started rolling in. The big difference - T.V. series. Without the cap they can put down roots and stay and spend, spend, spend.

For the film industry to survive, we need to continue the Film Tax credit. For the industry to prosper, we need to increase the funding. It's simple economics. If production companies see an opportunity to save money, they will. Filmmaking is a business, and just like any other business, they need to generate profit. One way to accomplish that is to reduce costs. I think there are around 40 states that offer tax credits. The fact that these states are utilizing tax credits as a means of vying for the production companies business would suggest that tax credits are a necessary part of any successful plan to attract film makers.
I joined IATSE in 2008 as a set dresser. In 2011 I was hired as a supervisor. I spent thousands of production company dollars at a variety of businesses from furniture stores, to hardware stores, to restaurants, to electrical supply houses, to rental companies etc. I saw the industry enjoy a upswing as more production companies chose the Pittsburgh area to shoot their projects. Our union membership grew, people bought homes and cars, and local business thrived from the influx of money. However, in the last 2 years, I've been finding myself unemployed due to the reduced funding in the current budget. I'll work a 4-6 months, then I'm unemployed when the project finishes. With no tax credit money available, production companies are going elsewhere to save money. Without a competitive credit program, I may be forced to follow the movies out of PA.

I am a Pennsylvanian, a tax payer and a film maker. I have had to leave our beautiful state to pursue the best job ever in the past and I came back when we started the tax credit. I would much rather stay here, in Pittsburgh where the people are real and have worked for what we have. This isn't a handout. This is supporting an industry that that really was born in our region. From the first nickelodeon, to Kodak, to the fact that we at one point in history, had offices for every major studio here. We have developed a reputation within the movie world of great crew, great locations and the plain fact that it is cheaper to shoot here than in other metropolitan areas. Paramount has moved storage of equipment here to bolster our infrastructure, and make it easier for productions to have the means to do the job. The Tax Credit doesn't take money away from social services or other needed institutions. It brings money into the state, into my PNC checking account, into my landlords pocket, into Giant Eagle's when I shop there, Milano's Pizza when I order there, my doctor at UPMC. If we keep the work coming in, we all benefit, not just those directly employed in the industry.
As JFK once stated " A rising tide floats all ships".

Our politicians have to secure their annual raises somehow. There are too many politicians in office. Back in the Reagan estate he acknowledged that and cut the fat right out of office. Government jobs seem to be the way to go instead of being a dreamer, an artist, a performer, a creator that breaths life into the minds of a predominantly lazy society who really doesn't use any imagination at all. Pittsburgh is looking like it will continue to birth and nurture artists because of the slaves who actually care about the arts. It seems the Burgh's population will always remain a city with a drinking problem and the love of sports, over looking the institutes that breed many different types of artists. There is only a small group of individuals in the Burgh that still value our culturally rich city. We acknowledge that Pittsburgh will remain a mecca of inspiration that may never obtain a sustainable structure to be prosperous as a individual who is married to the arts. Such a shame.

Mike Matesic
Melissa I am the president of IATSE local 489 in Pittsburgh. Since the beginning of the film incentive in 2007, our union membership has tripled in size. There has been at least 25% of our members purchasing homes and setting up roots in the state. As the film industry grows in the state, the pa film incentive remains stagnant at 60 million a year. The best way to keep moving forward is to uncap the program. An uncapped film incentive will bring not only much needed jobs but it will bring new business to the state as well.
In 2004 I had to travel to Louisiana to work on a show called Dreamer. There states film incentives were in there infancy. There crew base was small and they were centered around New Orleans. Our film was shot about an hour north of the city. We were able to pick up some local crew to complete the project. In 2004 the only production center was New Orleans. When Louisiana uncapped there incentives they began to grow. Now they have production centers in every major city throughout the state from Shreveport to Baton Rouge even Lafayett. The crew base grew as well they are well covered all over the state.
Businesses started to flock to the state from rental houses to editing companies and marketing firms. Louisiana reinvented itself as Hollywood south and if we uncap the Pennsylvania film incentive. Our state can begin to benefit from the billions of dollars spent in the state per year instead of the millions it receives today.

Robert Tannenwald's APPENDIX TABLE 3: does not match Pennsylvania’s Film Production Tax Credit and Industry Analysis.
- http://lbfc.legis.state.pa.us/reports/2009/35.PDF
With little effort, this report is found at PENNSYLVANIA LEGISLATIVE BUDGET AND FINANCE COMMITTEE REPORTS COMPLETED SINCE 1987
- http://lbfc.legis.state.pa.us/
Another misleading quote from his report - "The best jobs go to non-residents"
Typical Film Crew on a single production in Pennsylvania is about 280 people employed for three-four months. 85% of the film crew is a resident of PA. Those 42 jobs given to non-residents are typically Director, Writer, Producer, Cinematographer, Production Designer, etc. These are the film crew hired for the project regardless before there is a commitment to PA, or wherever it finally shoots.
The plus is they contribute income tax to the State of Pennsylvania while they work here.
To keep those 238 Pennsylvania Film Workers employed year round there needs to be 3-4 films each year. The 60 million cap provides only a third of this need for ALL of Pennsylvania.

There is no doubt the incentive creates lots of jobs and the productions spend lots of money at lots of places. That is totally true. However, every report and analysis from the ERA report to the annual film office reports show that more money is paid out than the state collects back in new revenue. For each $1 paid out, under 25-cents is collected in state & local taxes. And since only state tax revenue can be used to pay for the state program, the ROI for the state alone is even less. The cost-per-job in the film office reports are even higher than in the Tannenwald study. http://filminpa.com/resources/industry-analysis-reports/

There is a net fiscal gain of $4.5 million
Page 5.
"Although the state and local taxes generated by the $524.6 million in total economic impact of the approved projects is $17.9 million, the industry as a whole brings the state and local governments $62.7 million in revenues from taxes, fees and permits. While there is a net fiscal loss when comparing the net present cost of the Film Tax Credit program ($58.2 million) to the taxes generated by productions directly receiving tax credits ($17.9 million), there is a net fiscal gain to the Commonwealth of $4.5 million when considering all of the revenues generated by the entire industry. While some of this activity would occur without the benefit of the FTC, a significant proportion of this activity would be at risk without such a tax credit program. As part of this analysis, ERA did not quantify what proportion of this activity would be at risk."
http://filminpa.com/resources/industry-analysis-reports/

For each $1 paid out $1.08 is paid back by the film industry.

Sorry, I did not write the ERA report Adrian H. McDonald originally referred to at 9:13 pm on March 12.
The quote is from Page 5 of Pennsylvania’s Film Production Tax Credit and
Industry Analysis. - http://filminpa.com/resources/industry-analysis-reports/
Under the Executive Summary - Cost Benefit Analysis.
Adrian should to take his argument up with PA's Legislative Budget and Finance Committee and Economics Research Associates, an AECOM company (ERA|AECOM); they wrote the report.

Why does this report show Fiscal Benefits of $62.7 million, if they are not relevant?
You took only the amounts "Associated with FTC program" from the report and isolated them without the Entire Industry revenues for Pennsylvania.
The entire "Industry Revenues" would not be generated for Pennsylvania, if productions did not "Film in PA"
Productions currently are not filming in PA because of the lack of Film Tax Credits.
Productions are currently not generating that "Industry Revenue" for Pennsylvania.
Fact - without Film Tax Credits, Productions do not "Film in PA"
Here is where we differ -
You believe PA is currently better off without the Film Tax Credits.
I know PA is better with them.

Chip, there is tons of production happening in PA for things that do not get the PA tax credit. A few examples, everything else QVC does that could not take advantage of the credit before the cap ran out. Ditto for Center City. Films like The Dark Knight Rises, which could not qualify but shot in Pittsburgh for creative reasons, any projects with budgets under $1 million and so on and so forth. That's where most of the spending happens, and where most of the jobs are. According to the report, of the 9,700 production industry jobs in PA, only about 1,000 are supported by the tax credit program year to year. Without the program, those jobs are still there and the state is not losing money on a program that only returns 24-cents for each $1 the PA taxpayers fork out. If you work on a tax credit film, YOU are better off, not the typical PA taxpayer who has nothing to do with the film industry.

Adrian, I see your concern is not solely for the PA taxpayer. You have a stake in the game because you are from Los Angeles, and work(ed) for "FilmLA" a pro-active group to keep film work in California. You are commenting on film tax credits in various other states, too.
I understand and agree with the idea of a level playing field. If you can convince everyone to eliminate film tax credits, then all states are attracting film production equally. Unfortunately, it is not the reality.
As a Business Representative, who has his entire membership unemployed, I do not see any film jobs in Pennsylvania. The blockbusters like "Dark Knight Rises" filmed a large percentage in Los Angeles and also New York City. PA only had them for 15 days of filming.
The jobs which are still here are mostly Second Unit. As you know, Second Unit Filming is the location shots without the actors. Again, a small fraction of the entire film, and usually out-of-state film crews currently employed by the production with permission to film for a few days - usually never hiring a PA resident.

Article about the Film Industry in Los Angeles:
http://scvnews.com/2013/02/27/dont-close-the-curtain-on-film-tax-credit-commentary-by-assemblyman-scott-wilk/