Pennsylvania Film Tax Credit Incentive Program Philadelphia Production: 25% to 30% Credits with $100 Million Annual Funding
Pennsylvania’s film tax credit program has evolved from its initial 2004 incarnation into one of the most stable and producer-friendly incentive structures on the East Coast, with $100 million in annual funding and a credit structure that scales from 25 to 30 percent of qualified production expenses. The Pennsylvania film tax credit incentive program Philadelphia production ecosystem authorized by Act 84 of 2016 and administered by the Department of Community and Economic Development (DCED) has injected over $3 billion into the state’s economy since its launch and attracted productions ranging from HBO’s “Mare of Easttown” and “Task” to M. Night Shyamalan’s extensive filmography. For anyone providing Philadelphia videographer services or evaluating Pennsylvania as a production destination, the credit’s combination of no minimum spend, transferable credits, and additional incentives for qualified production facilities creates a compelling financial framework.
The Core Credit: 25% with No Minimum Spend
Pennsylvania offers a 25 percent tax credit on a production’s total qualified Pennsylvania production expenses. Unlike many competing state programs that impose minimum spend thresholds Georgia’s $500,000, for example Pennsylvania bases eligibility on a spend ratio: at least 60 percent of the total production budget (including pre-production, production, and post-production) must be incurred in the Commonwealth. This ratio-based approach rather than a dollar threshold makes the program accessible to productions of all sizes, from micro-budget independent films to major studio features and television series.
The credit is transferable, meaning that if a production company does not have sufficient Pennsylvania tax liability, the credit can be sold, assigned, or transferred to another entity. This ensures that out-of-state productions and companies without Pennsylvania corporate tax obligations can still realize meaningful savings. Applications are accepted no sooner than 90 days prior to the start of principal photography, and applicants must demonstrate that 70 percent of the film’s financing has been secured with the remaining 30 percent to be secured before principal photography begins. Applications are reviewed in quarterly periods, and no single project can receive more than 20 percent of the program’s total available credits in any fiscal year.
The 30% Bonus: Qualified Production Facilities and Post-Production
An additional 5 percent tax credit bringing the total to 30 percent is available for productions that meet minimum stage filming requirements at a Qualified Production Facility. This bonus incentivizes the use of Pennsylvania’s studio infrastructure and encourages the development of permanent production facilities in the state. Films with eligible post-production expenses incurred at a Qualified Post-Production Facility are also eligible for the enhanced 30 percent credit, whether as part of a larger production’s activity or as a standalone post-production project. This post-production provision is particularly valuable for building Pennsylvania’s capacity in editing, visual effects, sound design, and color grading high-value activities that create skilled jobs and retain production spending that might otherwise flow to post-production hubs in New York or Los Angeles.
Additional Incentives and Support Structures
Beyond the core tax credit, Pennsylvania offers several additional production incentives. Film cast and crew staying 30 or more consecutive days in a Pennsylvania hotel are exempt from the state hotel occupancy tax, reducing below-the-line costs for extended productions. State-owned property is available fee-free for commercial motion picture filming, except for extraordinary activities involving costs exceeding $1 million a provision that gives Philadelphia productions access to iconic state buildings and public spaces without location fees. PIDC, Philadelphia’s public-private economic development corporation, offers specialized bridge financing for city and state grant receivables, helping productions manage cash flow during the gap between production spending and tax credit realization.
The Pennsylvania Film Industry Association has emphasized the program’s broader economic context, noting that the motion picture industry contributes more to the US economy than the total value added by automobile manufacturing. With productions like “Silver Linings Playbook,” the “Transformers” franchise, and HBO’s growing Philadelphia portfolio demonstrating the state’s versatility, the $100 million annual funding provides the long-term stability that producers need when planning multi-year projects or returning series.
