Resumption of tax credit means cameras can roll again in Pennsylvania

February 25, 2011|By Amy Worden and Carrie Rickey, Inquirer Staff Writers

HARRISBURG - After a week in an unnerving limbo - with thousands of jobs and multimillion-dollar movie productions at stake - the state's film industry is rolling again.

Film industry officials were notified last week that tax credit applications approved by former Gov. Ed Rendell were being held up for review by Gov. Corbett's administration.

On Thursday, Corbett spokeswoman Kelli Roberts told The Inquirer that roughly $49 million in tax credits for 60 film, television, and commercial productions will be granted.

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"All have been released," she said. "We will honor the tax credits."

A total of $60 million in tax credits for the industry was appropriated in the 2010-11 state budget, of which $11 million is left, Roberts said.

Final approvals of the applications were delayed as part of Corbett's examination of Rendell-approved expenditures, she said.

Roberts would not say whether Corbett will recommend continued funding for the Pennsylvania program in his budget address on March 8.

During the gubernatorial campaign last year, Corbett said he supported the film tax credit.

Filmmakers across the state Thursday breathed a sigh of relief with word that the $49 million in credits had been released.

"That's really good news. There is hundreds of millions in business at stake in an industry that is expanding because of the film tax credit," said Ray Carballada, cochair of the Pennsylvania Film Industry Association and president of Shooters Inc., a Philadelphia-based production house.

Sharon Pinkenson, executive director of the Greater Philadelphia Film Office, learned of Corbett's decision to reinstate the tax credits from a reporter Thursday. She said she was relieved and would begin calling film staff she said were temporarily out of work as a result.

She said the Corbett administration needed to start approving new applications as well.

"Honoring applications that have been approved by the Rendell administration is a relief," she said. "However, no new jobs can be created until new applications can be reviewed and accepted."

Philadelphia, for instance, could still lose big-budget pictures such as the Brad Pitt zombie movie, World War Z, and the next episode of the Bourne franchise, which have yet to be approved for tax-credit status. Pittsburgh could lose the next Batman film from Christopher Nolan, The Dark Knight Rises.

Still, for a nail-biting 10 days it looked as if current productions across the state would be halted.

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