Filmmaker M. Night Shyamalan first put Pennsylvania on Hollywood’s radar screen with his 1997 blockbuster ‘‘The Sixth Sense.” In recent months, a $75 million tax credit Pennsylvania passed last summer has attracted even more Hollywood big wigs to the area.

Act 55 of 2007, Creativity in Focus: the new Film Production Tax Credit Initiative provides a 25% Film Production Tax Credit for film production expenses incurred in the Commonwealth of Pennsylvania, the Philadelphia Film Office reports. First available in the summer of 2007, feature films, TV shows and series and commercials intended for national audiences are eligible for this tax break. In order to qualify for the tax credit, 60 percent of the total production expenses must be incurred in Pennsylvania. No more than $75 million per year can be awarded.

The Pennsylvania Film Production Tax Credit Program allows the Philadelphia Region to be “competitive in the film industry,” says Nicole Shiner, Director of Operations & Government Affairs at the Philadelphia Film Office. “It keeps us at the top of the heap and we can compete with the best.”

The Film Office is delighted to announce that the budget for the tax credit was renewed for 2009. “It was a very exciting day to hear that we will be renewing the funding for the next year. Movies go where the money is. This program is built to be sustainable, we are very proud of it,” Shiner says.

Productions that took advantage of the tax incentive since the launch in July 2007 include: M. Night Shyamalan’s “The Happening,” “The Lovely Bones,” staring Mark Wahlberg, “Happy Tears,” staring Demi Moore, Parker Posey and Rip Torn, and “The Dream of the Romans,” staring Lauren Graham and Jeff Daniels.

The tax credit has resulted in more than $300 million in direct economic activity in Pennsylvania, which has created an estimated 4,355 jobs and generated nearly $20 million of new tax revenue, the PA Department of Community and Economic Development reports.

Numerous industries benefit when productions film in the Philadelphia Region. Industries impacted include hotels, restaurants, car rentals, florists, travel agents, craft services, furniture rentals, just to name a few. “Fresh money comes into our economy because they are here,” Shiner says. In addition, productions often hire local behind-the-scenes talent as well.

Shooters Post & Transfer, an Academy Award-nominated production company based in Philadelphia, reports that their business “has soared” since the tax incentives were put in place, noting that they now handle six to eight projects at a time, which was their total number of projects the year before.

In addition, Hollywood directors have taken notice to the new incentive. “I’ve always believed the most talented people in the business are from Pennsylvania,” Lee Daniels, Producer/Director of "Shadow Boxers," "The Woodsman" and Academy Award Winning "Monster’s Ball." Daniels admits that he originally wanted to shoot Monster’s Ball in Pennsylvania but at the time it was too expensive. He applauds Governor Rendell for instituting the tax rebate in Pennsylvania. “It’s a no-brainer to invest in a film that’s made in Philadelphia.”

Additional Assets of Filming in the Region

The website of the Philadelphia Film Office details additional incentives of filming in the Philadelphia Region. Filmmakers may be able to use properties owned by the Commonwealth of Pennsylvania and the city of Philadelphia for locations filming for free if the property can be made available during the filmmaker’s schedule. Philadelphia also offers productions to use the Navy Yard Soundstage, the only municipally-owned sound stage in the country. In addition, visitors staying 30 days or more in a hotel are not obliged to pay the 14% hotel tax and the city of Philadelphia may provide up to two free police officers for traffic control and security as needed for filming activity.

The vast landscapes of the Philadelphia Region are a marketable asset for filmmakers. “Unless a movie is based in the desert or on the moon, we have all the neighborhoods to back up movie plots,” Shiner says. From the streets in Center City to the suburbs to historic landmarks, the Philadelphia Region has vast scenery to offer.

"When we field phone calls from producers, it's important that we sell the things we have that others don't: the vast landscapes, the cities, Lancaster County, the natural assets. You can do country, urban, suburban,” Jane Saul, Pennsylvania Film Office Director, told Variety in 2006.

These additional assets of the Philadelphia Region have lured big-studio productions, such as “Transformers: Revenge of the Fallen”, to the area. The Film Office reports that the production liked the scenery of the region and filmed scenes in Bethlehem, Philadelphia and Princeton. Blockbuster movies such as “Transformers” bring a buzz about the town and also allowed locals to audition as extras for the film.

As more productions are filmed in the Philadelphia Region, the film economy will continue to grow and creative more jobs for creative individuals. With the tax credit program continuing for a second year, this will aid in establishing Philadelphia's Creative Economy as a global hub for creative enterprises, services and talent.

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