Q. How do I apply for a Film Tax Credit?

A. To be eligible for a Film Tax Credit at least 60% of your total production budget must be spent in Pennsylvania. Review the Applications & Forms section for step-by-step instructions on how to apply for a Film Tax Credit.

Q. I have submitted my application, now what?

A. After you have submitted your application and all related materials, it will be reviewed by the Pennsylvania Film Office. If the application is approved (typically within 30 days of receipt) you will receive an award letter in the mail. The award letter (contract) will detail the amount of the award and the terms under which a Film Tax Credit will be issued. Acceptance of the contract must be made by returning an original signed copy of the contract to the Pennsylvania Film Office within 14 days of the date it is issued by certified mail or other traceable form. Keep a copy for your files. Be sure to start filing Monthly Reports with the Pennsylvania Film Office once you have signed the award letter.

Q. When do I receive my Film Tax Credit?

A. After you have completed your production (including post) you must submit your audit and economic impact report. Once approved, you will receive your Film Tax Credit certificate.

Q. What can I do with a Film Tax Credit?

A. If you have a tax liability in Pennsylvania, you must first apply it to that. After you have filed your tax return, you may sell it or assign it.

Q. How do I sell my Film Tax Credit?

A. You can find a buyer yourself or there are many Tax Credit brokers available whose business is to assist you with the sale for a fee. Rates vary.

Q. Do employees have to be Pennsylvania residents in order for their salaries to be Qualified Pennsylvania Production Expenses?

A. No, the salaries qualify as long as their compensation is subject to Pennsylvania income tax.

Q. Are audit expenses Qualified Pennsylvania Production Expenses?

A. Yes, if they are included in the budget and the work is done in Pennsylvania.

Q. Must the production company open a bank account in Pennsylvania or use a Pennsylvania auditor?

A. No, a production company does not need to open a bank account in Pennsylvania or use a Pennsylvania auditor.

Q. Is a production for web-only distribution covered by the Film Tax Credit?

A. The terms of the current statute do not include productions solely intended for web distribution.

Q. What are Pennsylvania’s child labor laws?

A. The Pennsylvania Department of Labor and Industry is responsible for the monitoring and enforcement of child labor activity. If you are employing actors under the age of 18 years old in any type of project and you are paying any actors in your production (no matter their age), the project is subject to the Child Labor Laws of Pennsylvania. Contact Bob Kuzynski at the Bureau of Labor Law Compliance (412.565.5301) or the Pennsylvania Film Office for guidance. Refer to the Child Labor law by clicking here.