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PENNSYLVANIA URGED TO WELCOME FILMMAKERS
Lawmakers focus on grants and tax breaks. Adviser sees Valley as a movie backdrop.

By Kari Andren Special to The Morning Call
Thursday, June 28, 2007

With his 1997 movie ‘‘The Sixth Sense,’‘ filmmaker M. Night Shyamalan put Pennsylvania on Hollywood’s radar screen.

But if state officials want it to stay there, they’ll have to make Pennsylvania more economically attractive to Tinseltown, the top official at the Greater Philadelphia Film Office said this week.

‘‘The film industry isn’t about big cigars and movie stars,’‘ said Sharon Pinkenson, the film office’s executive director. ‘‘It’s about employment for Pennsylvanians, attracting young people and getting them to stay.’‘

Pinkenson and other filmmakers were in Harrisburg on Tuesday to build support for legislation that would boost grants and provide tax cuts for movies and TV shows shot in Pennsylvania.

Bills before the General Assembly would attract productions of all sizes. Right now, blockbuster films tend to eat up the available grant money, said Rep. Michael Sturla, D-Lancaster, who is pursuing the plans in the House. Sen. Jim Ferlo, D-Allegheny, is sponsoring the proposals in the Senate.

The two lawmakers’ bills would provide varying means of funding for the various sizes of film and television productions.

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BEHIND THE SCENES TO PASS TWO NEW BILLS TO ENTICE FILMMAKERS.
by Mary F. Patel
Published: June 27, 2007

While the state budget crisis drags on, with the expectation that it won’t pass before the June 30 deadline, the Greater Philadelphia Film Office continues to lobby House members to pass two bills that would aid local filmmakers and entice bigger movie houses to film in this state [See “Director’s Cut,” p. 16].

While tax incentives and grants for filmmakers already exist, these new bills would increase the amount of grants and provide more money for independent filmmakers. Indie filmmakers with low budgets often have not gotten these benefits because the big movie houses eat them all up.

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Pennsylvania Legislative Services
LEGISLATORS, FILM INDUSTRY ADVOCATES RALLY FOR TAX BREAK

By Heather Hottle, PLS intern
Wednesday, June 27, 2007

Legislators and industry professionals gathered around the Capitol fountain to rally for current legislation that will support Pennsylvania’s film and television industry.

Sharon Pinkenson, executive director of the Greater Philadelphia Film Office, said that Pennsylvania’s Film industry has grown in the past five years and has the potential to be an economic engine. She said that in 2004 Pennsylvania was one of the first states in the nation to pass legislation to attract filmmakers and HB 1528, HB 1529, SB 1007 and SB 1008 would secure Pennsylvania’s place as the East Coast premier movie making destination.

Pinkenson said that the movie “Our Lady of Victory” is currently being filmed in the state, but after the movie, the producer will have to film in other states because of the costs of production. She also said that the producer M. Night Shyamalan has filmed all of his movies in the Philadelphia area, but might be forced to shoot where it is cheaper in the future.

Rep. Mike Sturla (D-Lancaster) said that filmmakers are expected to spend about $500 million in Pennsylvania by the end of the year and this number will be increased dramatically with tax incentives. He explained that many filmmakers will go to New Mexico or South Carolina where tax incentives exist if Pennsylvania does not enact this legislation.

Rep. Sturla said that Pennsylvania is diverse in its scenery and architecture, making it attractive to many filmmakers. He also explained that making the film industry strong in Pennsylvania will have a long-lasting effect on tourism.

“We need to expand and take advantage of the industry,” said Senator Jim Ferlo (D-Allegheny), adding that the existing industry already expends more than half a million dollars in Pennsylvania per year.

Senator Ferlo said that small independent filmmaking is an emerging industry than Pennsylvania should invest in.

Rep. Pete Daley (D-Fayette), House Commerce Committee chairman, voiced his support for the bills, saying that the committee received the house bills on a Thursday and reported them out by the next Tuesday.

Rep. Daley listed some of the more memorable films already produced in Pennsylvania, including “The Mothman Prophecies” and “Night of the Living Dead.”

Jay Ingram, commissioner of the Lancaster Film Office, said that his office has only been in existence for two years, but has already brought in 14 films. He added that since the office’s inception, five businesses have been started and more than 200 local residents have been employed by the industry.

Ingram said that money is the great dangler and Pennsylvania could be the northern South Carolina.

Russ Streiner, board chairman of the Pittsburgh Film Office and a writer/producer himself, said that film production supports many other industries and businesses, such as transportation, restaurants, hotels and hardware stores.

Streiner said that the grant program for smaller filmmakers will attract younger filmmakers who will eventually become seasoned and stay in the area.

He also noted that to receive tax incentives, filmmakers with budgets of more than $2 million must first spend at least 60 percent of their total budget in the state and employees working on the set must pay state and local taxes.

Michael Barnes, second vice president of the International Alliance of Theatrical Stage Employees, said that the film industry is the new manufacturing job of the twenty first century and that the industry is the leading provider of jobs in New York, California and Florida. Barnes said Pennsylvania needs to catch up by passing this tax legislation.

Diane Hanlon, regional corporate account manager for Enterprise Rent-a-Car, said that many outside businesses benefit from film production in their area, noting that her company rents production vehicles and vehicles to cast and crew when a movie is being filmed.

Hanlon concluded that this legislation is about economic development.



Lawmakers push for bills to lure, keep films in state
Wednesday, June 27, 2007
By Tom Barnes, Pittsburgh Post-Gazette

HARRISBURG — Southwestern Pennsylvania legislators joined executives from film offices in Pittsburgh, Philadelphia and Lancaster yesterday to urge speedy passage of bills that would increase financial grants and extend tax credits to movie companies that decide to make their movies in the state.
“Pennsylvania has a plethora of buildings and places where you can re-create any environment you want” for a movie scene, said state Sen. Jim Ferlo, D-Highland Park.
He recalled people from one Pittsburgh neighborhood being upset one day when they found some of their streets temporarily off limits to travel and parking. “But then they found out that a movie was being shot there and they were so excited that their neighborhood had been chosen for a film,’‘ he said.

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Filmmakers seek added Pa. incentives
By Alex Roarty
TRIBUNE-REVIEW
Wednesday, June 27, 2007

HARRISBURG — State filmmakers and legislators are trying to keep the cameras rolling in Pennsylvania.
Actors, producers and directors from across the state rallied Tuesday at the Capitol in support of legislation they say Pennsylvania needs to remain an attractive destination for those who make movies and television shows.

Sharon Pinkenson, the director of the Philadelphia Film Office, said many movie studios have threatened to stop filming in Pennsylvania because it offers them less money to film than other states.

Pennsylvania has been an attractive destination for films and TV shows, she said, because of the state’s many historical sites and the surplus of skilled workers needed for the construction of sets.

Legislators have introduced bills in the House and Senate to expand the state’s financial incentives. The bills would expand grants available to movies with less than a $2 million budget and would give a 25 percent tax credit to films with budgets greater than $2 million. The tax credit would be applied to corporate net income taxes.

State Sen. Jim Ferlo, D-Highland Park, said the increased incentives are a “prudent” investment because movies and TV shows add millions of dollars to the economy.

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Pennsylvania to Hollywood: We’re ready for our close-up
Wednesday, June 27, 2007
BY KIRA L. SCHLECHTER
Of The Patriot-News

State film professionals are convinced Pennsylvania can have a starring role in the film industry.
Chanting “Lights, camera, action!” and toting signs that read “Pa. knows film” and “Keep the cameras rolling,” about 25 actors, producers, directors, technicians, and union and business representatives rallied yesterday at the state Capitol.

Members of film offices in Lancaster, the Lehigh Valley, Pittsburgh, Philadelphia, the Poconos and Scranton also attended to voice their support of two bills before the state House that would provide grants and tax credits for filmmakers who film here.

Pennsylvania’s film industry generated $218 million in 2004 and $249 million in 2005. More than 5,600 state residents earned $168 million in wages working on films between 1992 and 2003.

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Sorvino pushes filmmaker tax credit
BY ROBERT SWIFT
HARRISBURG BUREAU CHIEF
06/27/2007

HARRISBURG — Hoping to influence state budget talks, filmmaker Paul Sorvino and industry professionals called on lawmakers Tuesday to support bills to expand state aid for Pennsylvania-based movie productions.
With theatrical flair, actors, directors and stagehands held a rally at the Capitol to push for companion bills in the House and Senate to provide an uncapped 25 percent film tax production credit to producers with budgets greater than $2 million and grants from a $15 million pool for small independent producers.

Supporters hope the bills can win final passage this week along with an appropriation in the 2007-08 budget. The current state budget for film aid is $10 million.

Interviewed later by phone, Mr. Sorvino said Pennsylvania needs to follow the lead of other states in providing tax credits to filmmakers. He said prompt passage of the legislation is important to his goal of building a film production studio in Lackawanna County.

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CENTRAL PENN BUSINESS JOURNAL
Bill would bolster film and television production

State Sen. Jim Ferlo (D-Allegheny County) introduced legislation designed to attract more film and television producers to the state.
The bill would increase grant funds available to small film producers from $10 million to $15 million.

The legislation would also reintroduce the 25 percent film production tax credit to large-budget producers, according to Ferlo’s office.
Ferlo spoke at a rally to support the bill at 11 a.m. today in front of the capitol fountain. – Eric Veronikis



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June 18, 2007
STATE SEEKS TO REEL IN MORE MOVIES
By Barbara Vancheri, Pittsburgh Post-Gazette

New Mexico went hog wild for movies and won “Wild Hogs” and 19 other film or TV projects for 2007—work on the next “Indiana Jones” movie also is reportedly being done there. Now, Pennsylvania is seeking to fight back for a larger slice of the production pie.

Two House bills that could head to the state Senate this week would boost incentives for TV and moviemakers, potentially luring $350 million to $500 million in new money for the state, said Dawn Keezer, director of the Pittsburgh Film Office.

“Over 30 states in this country have film incentive programs. We have one, but it hasn’t stayed competitive,” Keezer said in an interview last week. While other states are building their production business, Pennsylvania’s is already established and could “explode” with the right enticements, she added.

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June 12, 2007

THE BULLETIN: GPFO HOSTS EVENT TO SUPPORT MORE PA. FILM FUNDING
By: Jenny DeHuff, The Bulletin

The GPFO hosted an event last night and invited major movie moguls Sam Mercer, producer of many M. Night Shyamalan movies, and Mark Manuel, money manager of Lions Gate Entertainment, to the Water Works Restaurant nestled behind the Art Museum. Wine was poured, hors d’oeuvres were passed, and about 100 people listened to encouragement of state legislation that would keep the cameras rolling and film business booming in Pennsylvania.

Two state house bills are poised to be voted on this session and Pennsylvania filmmakers are chomping at the bit for their passage. H.B. 1528 targets major feature films, TV series and nationwide commercials, and H.B. 1529 would serve independent filmmakers by providing grants of up to 20 percent of costs for productions for those with smaller budgets. “The way these bills are written, Pennsylvania would be the mecca of the film industry in the nation, second to Los Angeles,” Sharon Pinkenson, executive director of the GPFO said.

Launched in 2004, Pennsylvania offers a grant program of $10 million annually, paying as much as 20 percent of filmmakers’ cost when they spend 60 percent of their total production budget within the state. But according to Pinkenson, the program has been a victim of its own successes. Last year, for example, the program ran out of money just as a high demand for filmmaking came to Pennsylvania.

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June 11, 2007

STURLA INTRODUCES LEGISLATION TO ATTRACT MORE
FILM BUSINESS TO PA.

HARRISBURG, June 11 — State Rep. Mike Sturla, D-Lancaster, has introduced legislation that would better attract the entertainment industry to Pennsylvania by providing a film production tax credit and expanding the state’s Film Production Grant Program.

“Having worked with independent filmmakers in Lancaster, I know firsthand how challenging it is for them to cover the production costs of a movie. My bills would help them and also larger film producers come to Pennsylvania so they can spotlight our state’s diverse scenery and seasons,” Sturla said. “I will work closely with Governor Rendell and his administration in making sure Pennsylvania is a more attractive option for the entertainment industry.”

Sturla’s H.B. 1528 would provide a film production tax credit of up to 25 percent of production expenses for films with a budget over $2 million. The credit would only apply to production expenses incurred in Pennsylvania.

“With $80 million being spent in the state last year on filmmaking, I believe we could increase that amount significantly with the aid of my film tax credit bill,” Sturla said. “The exact amount available for these credits will be negotiated in the state budget.”

Sturla’s legislative package also would dramatically increase funding available to independent films and help to define Pennsylvania as a new location for innovative film and media arts.

“All too often, bigger films eat up the $10 million currently available in the state’s Film Production Grant Program,” Sturla said. “By providing a tax credit for larger productions, we can work to ensure that a larger pool of grant funding is made available to independent films doing business here. In essence, my second bill would provide these indie films with their rightful share in state funding.”

Sturla’s H.B. 1529 would support the growing independent film industry by increasing the state’s Film Production Grant Program by 50 percent, from $10 million to $15 million. The program would be limited to productions with a budget of less than $2 million. The grants, which could not exceed 20 percent of the production costs, would cover certain expenses incurred in Pennsylvania, including transportation, music and story rights, food, lodging, and insurance coverage.

Under both bills, eligible films would have to submit an application to the state Department of Community and Economic Development.

Contact: James M. Dawes, 717-772-0036



June 8, 2007

HOUSE BILL SEEK TO LURE FILMMAKERS TO PA.

Two bills that would provide tax incentives for film producers were introduced yesterday in the state House.

Rep. Mike Sturla (D., Lancaster) sponsored the legislation, which would provide 20 percent grants to Pennsylvania-shot productions whose budgets are $2 million or less, as well as 25 percent tax credits to productions with higher budgets. The low-budget grants would be capped at $15 million a year, while there would be no cap on the big-budget credits.

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TAX BENEFITS WOULD LURE VISUAL ARTISTS
Philadelphia Business Journal
by Peter Van Allen
Staff Writer

Filmmakers are poised to spend up to $500 million in Pennsylvania by year’s end — with one catch. They’re watching what will happen with proposed legislation that would increase the tax benefits of filming feature movies, television shows and commercials in Pennsylvania. Two separate bills have been introduced that would offer greater tax credits and other rebates. Advocates of the bills are putting on the full-court press to pass the bills before the legislature adjourns June 30.

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June 7, 2007

RENDELL SAYS PHILA. READY FOR IT’S CLOSE-UP
By Michael Klein
Inquirer Staff Writer

In a bid to raise Pennsylvania’s profile in the entertainment industry as well as tax revenue, Gov. Rendell and entertainment executives are helping to script a plan to increase incentives for film and television producers who locate their projects in the state. If the incentives are approved – and they have yet to be introduced in Harrisburg – plans then will proceed for the construction of a privately owned studio facility in the Philadelphia area.

The sound stages, with an initial construction budget of about $75 million financed partly by union pension funds, would be among the largest on the East Coast and would employ hundreds of film-industry workers. A site in Delaware County near Philadelphia International Airport is a strong contender, said Hal Katersky of Pacifica Ventures of Santa Monica, Calif., which has built a similar project in the cinematic boom town of Albuquerque, N.M. Katersky said he was sold on the Philadelphia area because of its location – close enough to New York, the Shore and the mountains.

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