Pennsylvania HB 1775: An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in entertainment production tax credit, further providing for definitions and for limitations, providing for audits, further providing for limitations and providing for formal review by department, for creative professionals tax credit and for miscellaneous provisions.

Bill Text

PRINTER'S NO. 2183
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1775
Session of
2025
INTRODUCED BY CARROLL, RIVERA, HOHENSTEIN, HILL-EVANS, SANCHEZ,
MERSKI, CEPEDA-FREYTIZ, D. WILLIAMS AND FIEDLER,
JULY 30, 2025
REFERRED TO COMMITTEE ON FINANCE, AUGUST 4, 2025
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," in entertainment production tax credit, further
providing for definitions and for limitations, providing for
audits, further providing for limitations and providing for
formal review by department, for creative professionals tax
credit and for miscellaneous provisions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1711-D of the act of March 4, 1971
(P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
by adding a definition to read:
Section 1711-D. Definitions.
The following words and phrases when used in this subarticle
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
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* * *
"Digital media company." A business that primarily creates,
produces and distributes content in digital formats, consumed
and accessed online or through digital devices.
* * *
Section 2. Section 1716-D(a) introductory paragraph, (b) and
(f) of the act are amended and the section is amended by adding
subsections to read:
Section 1716-D. Limitations.
(a) Cap.--Except for tax credits reissued under section
1716.1-D, in no case shall the aggregate amount of tax credits
awarded in any fiscal year under this subarticle exceed
[$100,000,000] $400,000,000. The department may, in its
discretion, award in one fiscal year up to:
* * *
(b) Individual limitations.--The following shall apply:
(1) Except as set forth in paragraph (1.1) [or], (1.2)
or (1.3), the aggregate amount of film production tax credits
awarded by the department under section 1712-D(d) to a
taxpayer for a film may not exceed [25%]:
(i) 30% of the qualified film production expenses to
be incurred[.], if the qualified production expenses are
less than $50,000,000; or
(ii) 35% of the qualified film production expenses
to be incurred, if the qualified production expenses
equal or exceed $50,000,000.
(1.1) In addition to the tax credit under paragraph (1),
a taxpayer is eligible for a credit in the amount of 5% of
the qualified film production expenses incurred by the
taxpayer if the taxpayer:
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(i) films a feature film, television film or
television series, which is intended as programming for a
national audience; and
(ii) films in a qualified production facility which
meets the minimum stage filming requirements.
(1.2) A qualified postproduction expense shall qualify
for a 30% credit.
(1.3) In addition to the tax credit under paragraph (1),
a taxpayer is eligible for the following stackable credits,
which may be combined:
(i) In the amount of 5% of the qualified film
production expenses incurred by the taxpayer if the
taxpayer produces the film with employees, at least 60%
of whom are residents of this Commonwealth.
(ii) In the amount of 5% of the qualified film
production expenses incurred by the taxpayer if the
taxpayer displays the official Pennsylvania tourism logo
in the end credits of, or the promotional materials for,
the film.
(iii) In the amount of 5% of the qualified film
production expenses incurred by the taxpayer if the film
is shot on location in any of the following counties:
Armstrong County; Beaver County; Bedford County; Blair
County; Butler County; Cambria County; Centre County;
Clarion County; Clearfield County; Columbia County;
Crawford County; Erie County; Fayette County; Fulton
County; Greene County; Huntingdon County; Indiana County;
Jefferson County; Juniata County; Lawrence County; Mercer
County; Mifflin County; Montour County; Northumberland
County; Schuylkill County; Snyder County; Somerset
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County; Union County; Venango County; Washington County;
or Westmoreland County.
(2) A taxpayer that has received a grant under 12
Pa.C.S. § 4106 (relating to approval) shall not be eligible
for a film production tax credit under this act for the same
film.
( b.1 ) Base c redit i ncrease.--
(1) Projects with budgets under $50,000,000 shall
receive a 30% tax credit on qualified expenditures.
(2) Pr