Film tax credit increase could benefit local economy
The film industry got a notable boost in benefits from the 2022-23 state budget — a boost that may impact the local economy outside of film production, Butler County officials said.
An update to the 2022-23 state tax code increased the cap for the film production tax credit in Pa. from $70 million to $100 million and provided a $5 million allocation to Pennsylvania film producers.
The film tax credit program provides a 25% tax credit to film productions if Pennsylvania production expenses make up at least 60% of the film’s budget. An additional 5% tax credit —for a total credit of 30% — is available for productions that meet the minimum state filming requirements at a qualified production facility.
Members of the film production industry in Pennsylvania previously had asked state lawmakers to increase the number of tax credits available in order to provide a larger incentive for companies to work in the state. A proposed increase to $125 million was introduced in Senate Bill 321, led by Sen. Camera Bartolotta, R-46th, last March.
“We are thrilled with the much-needed expansion of the Pennsylvania Film Tax Credit program,” said Dawn Keezer, director of the Pittsburgh Film Office, which serves a 10-county region that includes Butler County.
“The film industry is a viable economic generator for southwestern Pa., and the film tax credits are a crucial part of the process to attract film production to the region,” she said. “The film/TV industry wants to film in southwestern Pa., and we are happy to welcome them.”
The film office had a record-breaking year in 2021, Keezer said, and brought more than $300 million to the region’s economy.
“(We) fully expect 2022 to be another record-breaking year,” she said.
For local officials, a provision benefiting the film industry presents a chance for a wider boost.
“I think it’s great that they upped the numbers there. When they film movies in our community, that’s extra revenue that we see, because they have to stay somewhere, they have to eat somewhere and they all shop too,” said Butler County Tourism & Convention Bureau president Jack Cohen. “The extra revenues that come into our community are very good when they do movies.”
He cited an early 2022 movie project for the film “The Pale Blue Eye,” a Netflix thriller starring Christian Bale that filmed at Moraine State Park and the Portersville area.
“They take care of people when they come into town, and they appreciate what we do for them. It's always a great partnership,” Cohen said.
County commissioner Kevin Boozel recalled the filming in Zelienople that took place for Netflix’s “Mindhunter” in 2018.
“I see this as a form of tourism, or a driver of tourism,” Boozel said. “(Film crews) stay a lot of places, and they sometimes bring their families with them. If we can make accommodations for them in Butler County, I’d be more than happy to do that.”
He described the increase in tax credit as a “pretty significant chunk” of money.
“I do see it as a true investment into our state and into our county that will pay dividends,” Boozel said. “We have to let filmmakers know that we did this in Pennsylvania — someone has to reach out to them and say, look, we’re open for business, here’s what we did for you.”
Jordan Grady, president of the Butler County Chamber of Commerce, described the benefits that a film production company can bring to the area as “a domino effect.”
“They are bringing tons of people into the area, and those people need hotel rooms, they need to eat breakfast, lunch, and dinner, and they’re going to explore the area,” Grady said. “It's going to sell more hotel rooms, it’s going to potentially provide more customers to eateries, retailers are potentially going to get more customers, especially the unique ones of Butler County that a non-resident wouldn’t know about."
