I'm definitely sensitive to the value of these to film industry workers and filmmakers in PA - if PA wants to support a film industry, I wish incentives were structured to benefit only/ mainly local productions so at least profits stayed in the state
Cool video, but I don't think it explains the issue in a simple enough manner. A $ amount example from an actual production would be clearer.The reason people are starting to line up against tax credits is because they think their tax dollars are going into the pockets of Hollywood. The masses hear 25% tax credit and they think PA is paying for 25% of the film's budget (even the graphics in the video seem to imply this). Equity? Third Party Broker? Most people don't know what that all means.
@bausermedia The state is, in fact, paying for 25% of the films budget. Actually only 75% of that 25%, and some lucky third party broker gets the remaining 25% of that 25% for doing nothing. But if that is indeed what 'the masses' think, 'the masses' are correct. Their tax credits are, in fact, directly subsidizing the production of Hollywood movies.
@pimentomori Um, no. The state is not paying any portion of the film's budget. They're reducing the production's tax liability to the state of PA for money spent there. I don't think you understand what a tax credit is. Thank you for proving my point.
@bausermedia Whether the production uses the tax credit themselves or, more commonly, sells it to a 3rd party for 75% of its value, PA's overall tax revenues are reduced by the amount of the credit. Whether PA loses $1 million in revenue (which is what happens) or pays $1 million directly to the producers out of state coffers, the effect is the same. PA is out $1 million it otherwise would have for other things. And a movie with a $4 million budget only has to find $3(.25) million in financing.
@bausermedia Additionally, these tax credits are not going just towards taxes being incurred by the film production. The credits may be higher than the film's tax liability. Since they are allowed to be cashed out and sold to third parties, they can easily directly subsidize the film's budget above and beyond the tax liability of that production.
Well, obviously you've spent a great deal of time thinking about this. But my original point still stands, the video doesn't really explain how tax credits work. There are a lot of people who think PA hands a check to producers equal to 25% of their film's budget just for making a movie in PA. Not how it works.
This video is spot on and only very slightly dated- but the dating is OK because in the last year the positive story of film production in PA has only gotten better. I know the real fact and the real about the positive story of the NEW MONEY that movies bring into PA. I'm the Chair of the Pittsburgh Film Office. It will be a major political blunder to allow these Film Tax Credits to be eliminated.
"Devil" & "Destination Home", two films planned for this fall, have already left the state. The effect of tax credits is felt immediately - for good or bad.
Louisiana has made it's credits permanent and will buy them back at 85% thus giving them a guaranteed value. Louisiana wants a film industry - does Pennsylvania?
I'm definitely sensitive to the value of these to film industry workers and filmmakers in PA - if PA wants to support a film industry, I wish incentives were structured to benefit only/ mainly local productions so at least profits stayed in the state
pimentomori 3 months ago
Cool video, but I don't think it explains the issue in a simple enough manner. A $ amount example from an actual production would be clearer.The reason people are starting to line up against tax credits is because they think their tax dollars are going into the pockets of Hollywood. The masses hear 25% tax credit and they think PA is paying for 25% of the film's budget (even the graphics in the video seem to imply this). Equity? Third Party Broker? Most people don't know what that all means.
bausermedia 1 year ago
@bausermedia The state is, in fact, paying for 25% of the films budget. Actually only 75% of that 25%, and some lucky third party broker gets the remaining 25% of that 25% for doing nothing. But if that is indeed what 'the masses' think, 'the masses' are correct. Their tax credits are, in fact, directly subsidizing the production of Hollywood movies.
pimentomori 3 months ago
@pimentomori Um, no. The state is not paying any portion of the film's budget. They're reducing the production's tax liability to the state of PA for money spent there. I don't think you understand what a tax credit is. Thank you for proving my point.
bausermedia 3 months ago
@bausermedia Whether the production uses the tax credit themselves or, more commonly, sells it to a 3rd party for 75% of its value, PA's overall tax revenues are reduced by the amount of the credit. Whether PA loses $1 million in revenue (which is what happens) or pays $1 million directly to the producers out of state coffers, the effect is the same. PA is out $1 million it otherwise would have for other things. And a movie with a $4 million budget only has to find $3(.25) million in financing.
pimentomori 3 months ago
@bausermedia Additionally, these tax credits are not going just towards taxes being incurred by the film production. The credits may be higher than the film's tax liability. Since they are allowed to be cashed out and sold to third parties, they can easily directly subsidize the film's budget above and beyond the tax liability of that production.
pimentomori 3 months ago
Well, obviously you've spent a great deal of time thinking about this. But my original point still stands, the video doesn't really explain how tax credits work. There are a lot of people who think PA hands a check to producers equal to 25% of their film's budget just for making a movie in PA. Not how it works.
bausermedia 3 months ago
This video is spot on and only very slightly dated- but the dating is OK because in the last year the positive story of film production in PA has only gotten better. I know the real fact and the real about the positive story of the NEW MONEY that movies bring into PA. I'm the Chair of the Pittsburgh Film Office. It will be a major political blunder to allow these Film Tax Credits to be eliminated.
TheRussflix 1 year ago
"Devil" & "Destination Home", two films planned for this fall, have already left the state. The effect of tax credits is felt immediately - for good or bad.
Louisiana has made it's credits permanent and will buy them back at 85% thus giving them a guaranteed value. Louisiana wants a film industry - does Pennsylvania?
ralcarbo 2 years ago
Toll-free: 877-728-8262 Pat Vance, the York Sen. who is holding up this bill. Let her know we vote!
elvisbus 2 years ago
Fantastic! I'm hyperlinking this everywhere I can, we NEED the tax credit in PA
EatSleepBreathMovies 2 years ago
Yea for real. Let's pass this. My dog needs food. . .
amishjim 2 years ago