Uncertain tax credits, movie projects leave

    Movie productions are leaving Philadelphia because the state has not decided whether to continue offering tax credits for the film industry.

    Movie productions are leaving Philadelphia because the state has not decided whether to continue offering tax credits for the film industry. Hollywood filmmaker M. Night Shyamalan has shot his last 9 films in the Philadelphia region, but will shoot his new film in Toronto where tax credits are guaranteed.
    Courtesy: Touchstone Pictures

    Listen:
    [audio: 090825pcfilmtax.mp3]

    The budget impasse in Harrisburg makes both filmmakers and investors unsure if Pennsylvania will offer credits, and they are not waiting to find out.

    In the last few weeks several productions have moved to Louisiana, New Mexico, or Toronto, all of which offer tax credits for feature films.

    Ray Carballada invested in state-of-the-art technology for his Philadelphia post-production studio to get feature film work. He says it attracts other clients, too.

    Carballada: the technology on the film business side are the cutting edge of our industry, having that technology here makes us able to compete better for commercial work. Losing that is going to be a blow to our future business in non-credit related work.

    A tax credit is supported by Governor Ed Rendell as a means to create jobs, but Republican state senator Pat Vance has called it a “Hollywood giveaway.”

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