Surprise Ending?

State Rep. Rosita Youngblood fights to save her film bill.

by Mary F. Patel

State Rep. Rosita Youngblood began her fall agenda by fighting to pass legislation she proposed that would force film companies to give a percent to state charities before they can receive their tax credits.

Her bill, 1433, required production companies spending more than $1 million to raise or donate $25,000 to a state charity or a nonprofit before they can reap the 25 percent tax credit. In a press release, Youngblood said that members of the House adopted an amendment containing her proposal before the General Assembly recessed for the summer, but the Senate removed the provision from the final bill. She said that as part of the budget-crunch compromise, charities and nonprofits were left out of the legislation that was finally passed.

Last summer, two bills passed the House and Senate that gave tax incentives to film and TV productions [News, "Director's Cut," Doron Taussig; Political Notebook, "Indie Incentives," June 28, 2007]. State Rep. Mike Sturla introduced House Bill 1528 and State Sen. Jim Ferlo introduced Senate Bill 1008, both of which would benefit big box-office movies and TV shows filmed here, allowing a 25 percent tax credit to productions with budgets of more than $2 million.

House Bill 1529 and Senate Bill 1007, also introduced by Sturla and Ferlo, would benefit independent films with budgets of less than $2 million. On July 20, Gov. Ed Rendell signed the production tax credit bill into law.

With the Senate not including Youngblood's addition to the bill, she now plans to mount a fight to get it back in. (State Sen. Dominic Pileggi, chair of the Senate Rules Committee, did not return calls by press time as to why Youngblood's bill did not pass the Senate.)

"This provision has the potential to significantly impact charities and nonprofits in Pennsylvania, especially those organizations here in Philadelphia," Youngblood said. "When the Senate removed this language over the summer and the bill passed without any mention of charitable donations, I was livid. We are talking about pocket change for the production companies that would be receiving close to $250,000 in Pennsylvania tax breaks."

Youngblood isn't the only one who is livid. Sharon Pinkenson, executive director of the Greater Philadelphia Film Office, called Youngblood's bill "distressing." Pinkenson said that already, filmmakers have been very generous with in-kind donations and they should not be forced to make their donations public. Another concern she had was that production companies would not want to come to the state at all if forced to give donations, and plans to build production studios in the state would never happen.

Pinkenson has spent many years putting the city on the map as a destination for filmmakers and production companies. The additional tax incentives now provide an even greater reason for productions to choose Pennsylvania over places like New Mexico or Canada, thus creating jobs and additional revenue for the state. Michael Chapaloney, director of tourism and film communications at the Department of Community and Economic Development, said the office was reviewing Youngblood's bill and had no further comment.

If Youngblood's bill gets enough muster to pass the Senate, it could possibly dilute any tax incentives; Youngblood said she has modified the bill to include in-kind donations and disagreed with Pinkenson that her bill is distressing. "It could only be a win-win situation," she said. "Name one corporation that is allowed to carry over their tax credits to another year."

House Bill 147, which Rendell signed, stipulates that if the film company does not use the entire amount of the tax credit for the year in which it was approved, any excess may be carried over to the next three taxable years. David Ross, the head of the Pennsylvania Association of Non-Profit Organizations, applauds Youngblood's efforts as a great way to build relationships between the film industry and the community in a time where nonprofits are really struggling.

"Filmmaking can benefit everyone and what better way to get the community to see the film?" asked Ross.

He did not think that production companies would not come to the state to film because of the requirements to charities. In Youngblood's bill, if all $75 million in available tax credits are claimed, nonprofits would receive $7.5 million.

While Ross added that he would engage advocates for the cause, Pinkenson said she would come out publicly against Youngblood if necessary. She'd likely have the support of Rendell, who could very well veto Youngblood's legislation if it passed the Senate.

But Chuck Ardo, Rendell's press secretary, said the governor believes that charities are up to individual consensus. "Certainly, he will take a look at the bill," said Ardo, "and he will look at it with a wary eye."

(rcpatel@aol.com)