# Pennsylvania Film Tax Credit

Source: https://storiara.com/incentives/us/pennsylvania
Last updated: 2026-09-14
Author: Charles Hirschhorn, Storiara

> Pennsylvania's Film Production Tax Credit is a transferable credit of 25% of qualified Pennsylvania production expenses, or 30% for productions meeting minimum filming requirements at a qualified production facility. At least 60% of total production expenses must be in Pennsylvania. The program awards up to $100 million per fiscal year, and applications open no sooner than 90 days before principal photography.

## The 60% test decides eligibility

Before any rate applies, Pennsylvania production expenses have to be at least 60% of the film's total production expenses. The guidelines work it out with pre-production, production, and post counted together: a $100,000 film with $60,000 spent in Pennsylvania passes; $59,000 doesn't. Post done in Pennsylvania counts toward the 60% even at a facility that isn't a Qualified Post-production Facility, but it earns 25% instead of 30%.

Then the credit is 25% of qualified Pennsylvania production expenses. It is a [transferable tax credit](https://storiara.com/glossary/transferable-tax-credit): use it against Pennsylvania tax in the year issued and carry it forward up to three more years, or sell or assign it with DCED approval during that same window.

## What qualifies and what doesn't

Qualified expenses are Pennsylvania production costs: wages and salaries subject to Pennsylvania withholding, and goods, services, and rentals from Pennsylvania residents or entities taxable in the state. Excluded:

- Development, financing, marketing, and advertising
- Costs of selling or transferring the credit
- Deferred, leveraged, or profit participation pay
- Principal actors' above-the-line payments beyond $15 million in aggregate
- Pass-through expenses from companies that don't normally rent or sell those goods

The 5% uplift is for a feature, TV film, or series intended for a national audience that meets DCED's minimum stage requirements at a Qualified Production Facility (QPF):

| PA production expense | Sets built at QPF | Days shot at QPF | Spend at QPF |
|---|---|---|---|
| Under $30,000,000 | At least 1 | At least 10 | At least $1,500,000 |
| $30,000,000 or more | At least 2 | At least 15 | At least $5,000,000 |

## Worked example: $1,000,000 feature in Pittsburgh

Pre-production spend is $120,000, production $680,000, and post $200,000, for $1,000,000 total. In Pennsylvania: $90,000 of prep, $560,000 of production, and $50,000 of post at a local edit house, totaling $700,000. That's 70%, so the film is eligible.

- Credit: $700,000 x 25% = $175,000
- Application fee: waived, since the total budget is $1 million or less

Moving the other $150,000 of post to Pennsylvania wouldn't change eligibility here, but it would add $150,000 x 25% = $37,500, or $45,000 at a Qualified Post-production Facility.

## Worked example: $5,000,000 feature with stage work

Pennsylvania expenses are $3,500,000 of the $5,000,000 total (70%).

- Standard credit: $3,500,000 x 25% = $875,000
- With QPF requirements met (one set built, 12 days, $1,600,000 spent at the facility): $3,500,000 x 30% = $1,050,000
- Application fee at 0.2% of the anticipated credit: $1,050,000 x 0.2% = $2,100 (maximum $10,000)

## Applying

1. Register the company to do business in Pennsylvania before principal photography (out-of-state companies file a Foreign Registration Statement).
2. Apply on the Enterprise eGrants System no sooner than 90 days before principal photography in Pennsylvania.
3. Show verifiable documentation that 70% of financing is secured and that the rest will be in place before photography.
4. DCED reviews applications in four periods (July to September, October to December, January to March, April to June) and scores them on stage days at a QPF, Pennsylvania hires, days in PA hotels, PA spend against total budget, and use of studio resources.
5. If approved, sign the contract and file monthly reports, then the final production and economic impact report, vendor list, and cast and crew form.

Section 1716-D of the Tax Reform Code caps awards at $100 million per fiscal year, with $5 million reserved for Pennsylvania film producers, and DCED can award some credits against future years. The guidelines say no single project receives more than 20% of the year's available credits. Productions shooting more than 12 months can ask for the credit to be issued annually.

## Other Pennsylvania savings

Cast and crew staying 30 or more consecutive days in a Pennsylvania hotel don't pay the state hotel tax. State agencies can't charge a location fee for commercial filming on state-owned property beyond their actual costs.

## Pennsylvania next to its neighbors

[New Jersey](https://storiara.com/incentives/us/new-jersey) pays 35% outside the New York City radius, and [New York](https://storiara.com/incentives/us/new-york) pays 30% with an extra 10% on labor upstate. [Ohio](https://storiara.com/incentives/us/ohio) pays a refundable 30% with only a $300,000 minimum. Check [Maryland](https://storiara.com/incentives/us/maryland), [Delaware](https://storiara.com/incentives/us/delaware), and [West Virginia](https://storiara.com/incentives/us/west-virginia) too, then compare on the [incentives hub](https://storiara.com/incentives) or in the [incentive calculator](https://storiara.com/tools/incentive-calculator). For what counts as [qualified spend](https://storiara.com/glossary/qualified-spend) and how credits turn into cash, see [how film tax credits work](https://storiara.com/blog/how-film-tax-credits-work).

Storiara's [budgeting feature](https://storiara.com/feature/budgeting) splits costs into above the line, below the line, post, and other, so you'll regroup them into the pre-production, production, and post phases Pennsylvania's application asks you to break out.

## Frequently asked questions

### What is the Pennsylvania film tax credit rate?

25% of qualified Pennsylvania production expenses, or 30% for a feature, TV film, or series that meets minimum stage filming requirements at a Qualified Production Facility. Post-production at a Qualified Post-production Facility also earns 30%.

### What is the 60% rule in Pennsylvania?

A film is eligible only if Pennsylvania production expenses make up at least 60% of its total production expenses. DCED can waive the test for productions with at least $30 million in PA expenses that meet the stage requirements at a qualified facility.

### How much film tax credit does Pennsylvania award each year?

Section 1716-D of the Tax Reform Code caps awards at $100 million per fiscal year, with $5 million reserved for Pennsylvania film producers. The guidelines say no single project gets more than 20% of the credits available in a year.

### Can I sell a Pennsylvania film tax credit?

Yes. With DCED approval of an assignment application signed by buyer and seller, you can sell or assign the credit in the year it is issued or the following three tax years. Buyers can't resell it.

## Sources

- [Pennsylvania Film Office, Film Tax Credit Guidelines](https://filminpa.com/incentives/tax-credit/)
- [PA DCED, Film Tax Credit Program](https://dced.pa.gov/programs/film-tax-credit-program/)
- [PA DCED, Film Production Tax Credit Program Guidelines](https://dced.pa.gov/download/film-production-tax-credit-guidelines/?wpdmdl=75431)
- [Pennsylvania General Assembly, Tax Reform Code of 1971 (Act 2), Article XVII-D](https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?txtType=HTM&SessYr=1971&ActNum=0002.&SessInd=0)