A cut in the Film Production Tax Credit in Pennsylvania’s budget
could result in the director of “Little Chicago” yelling “cut” on
the film’s production here.
As a result, people local and statewide are hoping the budget
includes the funding. However, some state lawmakers believe the
money could be used elsewhere.
“Without it, we probably won’t shoot here,” said “Little
Chicago” screenwriter and director Carl Veno on Monday. This year,
Veno is seeking about ,3 million for the new fiscal year.
“We would pump it right back into the area,” Veno said. The
benefit to the local economy is apparent, he added.
“We’ve put about ,10 million in McKean County,” he said. “That’s
an instant economy. Nothing raises an economy more than a movie
coming in.”
If the state doesn’t keep the money in the budget, there are
plenty of other places for film crews to go.
New York state raised its film incentive to 30 percent;
Michigan’s is 40 percent.
This underscores the importance of filming to a state, Veno
said.
“McKean County needs that kind of money,” he said. “We’ve
already spent a million in McKean County in preproduction,”
including hotels and merchandise.
The budget for “Little Chicago” is ,12 to ,15 million.
Pennsylvania established a 25 percent tax credit with a ,75
million cap to bring films to the state.
Gov. Ed Rendell’s press secretary Chuck Ardo explained the
legislation is renewed each year and has been good for
Pennsylvania.
“The initiative has been a tremendous success with films being
shot across the width and breadth of the Commonwealth,” Ardo
said.
The measure is renewed automatically unless something is done
affirmatively to stop the funding.
“There’s always somebody who is trying to prevent something,” he
said, adding that if there was legislation to strip the funding,
“it is unlikely to gain traction and wouldn’t have the support of
the governor.”
“There’s probably something in the hopper, but nothing currently
threatens” the funding.
Two state lawmakers who represent this region both say there’s
more important things to be worried about.
“We put the film tax credit in at the governor’s request in the
budget at the last minute last year,” Senate President Pro Tempore
Joe Scarnati, R-Brockway, said, adding the topic hasn’t come up in
conversations with the governor in the past few weeks.
“As we move through the issue of tax credits, we need to look
back and see exactly what benefits the film tax credit has had,”
said Scarnati. “As we look at tax relief in the Commonwealth,
there’s plenty of small businesses and working class people that
could also use tax relief.”
In the end, Scarnati believes the money could be spent
elsewhere.
“I have a hard time justifying the film tax credit when we’re
not even giving job-creators the capital stock and franchise tax
phase out that we have promised them,” Scarnati said. “I want to
get a handle on what it means to residents in my district. Shooting
“Little Chicago” certainly has had some positive impact, but what
will that be going forward? I have a lot of questions that need
answered.”
State Rep. Martin Causer, R-Turtlepoint, who wrote a letter in
support of the film and tax credit last year, said if it’s in the
budget, he will push for “Little Chicago” to get some money.
However, there’s plenty of other programs that need funding,
too.
“I have to say that film tax credits have some economic
benefits, but it’s not a priority with me with this budget,” Causer
said. “I am working very hard on supporting a fiscally responsible
state budget.”
Causer said there’s a lot of budgetary issues to be ironed out
before the budget is passed.
“The film tax credit, in the big picture, is not really a top
priority. There’s a lot of major issues, a lot of good programs the
governor has cut funding for.
“These are taxpayer dollars. I want to make sure they are spent
wisely.”
Bradford City Mayor Tom Riel has spoken with both Scarnati and
Causer about his desire to keep “Little Chicago” filming, as well
as bring other filming to Bradford.
“If the tax credit is not included, Bradford could lose millions
of dollars,” Riel said. He added he understands that Scarnati and
Causer have a broader constituent base.
“My concern is the City of Bradford,” Riel said. “There’s no
question that the film being in Bradford brings a lot of money and
exposure to the city. That most likely won’t happen without the
film tax credit money … this is very positive for the city. This is
good for Bradford.”
Riel said that in six to eight weeks, the city could make more
money than the entire budget for a year.
“,8 to 10 million could be spent locally over a six-to-eight
week period,” Riel said. “For Bradford, this is a huge
concern.”
J. Mickey Rowley, deputy secretary for tourism in the
Pennsylvania Department of Community and Economic Development,
echoed Riel’s sentiments.
The filming of “Little Chicago” in McKean County “wouldn’t be
happening if not for the tax credit.”
Rowley said it is particularly significant for Pennsylvania to
keep the tax incentive since nearby New York state has one,
too.
“This is a mobile industry,” he said. “Productions will leave
the state if not given the appropriate incentive to make it viable
to be in that state.”
He said it makes good economic sense, too.
“It costs us nothing, zero, to have a tax incentive
program.”
Another thing Pennsylvania has going for it is the “crew base,”
meaning there are people here that can do the jobs needed for a
film production.
“Their business is all about people. They employ people. Besides
people in front of the camera, there’s people behind the
camera.”
He said that 4,000 jobs have been created through this tax
credit program.
“That’s huge,” he said, adding if Pennsylvania doesn’t stay
competitive, the films will leave.
Specifically in this area, Rowley said he can see films shot at
the Kinzua Viaduct as well as automobile ads on U.S. Route 6.
“We have a lot of small towns,” he said. “Bradford is unique,
charming.”
There’s also an extensive elk herd in nearby Elk County as well
as the entire Pennsylvania Wilds region.
Veno said he hopes to start filming in August.
“Everything is just about in place,” he said. “The first thing
is the budget. Everybody is sitting here seeing what the lawmakers
are going to do.”
He said he would be “absolutely dumbfounded” if the funding is
not included in the budget.
“This is an investment for Pennsylvania,” Veno said. “I am
hoping that it gets passed. If not, we are going back to the
drawing board.”
(Era Associate Editor Mike Schreiber contributed to this
story.)
