This bill amends the Tax Reform Code of 1971 to enhance tax credits related to entertainment production, specifically for film, television, and digital media projects in Pennsylvania. Key changes include increasing the cap on the aggregate amount of tax credits awarded in a fiscal year from $100 million to $400 million, and adjusting the individual limitations on film production tax credits. The bill introduces a new definition for "Digital media company" and establishes a small production reserve, ensuring that 15% of the annual allocation is reserved for Pennsylvania-based production and digital media companies with budgets of $5 million or less. Additionally, it creates a retention credit pilot program for creative professionals, providing tax credits for those committing to Pennsylvania-based projects.

The bill also mandates annual audits by the Auditor General to ensure compliance with tax credit provisions and includes a formal review process for assessing the scalability of tax credits for gaming and immersive media. New sections are added to define creative professionals and outline the application process for creative professional tax credits, which will be available starting July 1, 2026. The bill sets a cap of $20 million for the aggregate amount of creative professional tax credits awarded in a fiscal year and limits individual credits to $150,000 per taxpayer annually. Overall, the legislation aims to stimulate the entertainment industry in Pennsylvania by providing more substantial financial incentives for production and creative professionals.

Statutes/Laws affected:
Printer's No. 2183 (Aug 04, 2025): P.L.6, No.2