Nearly two years after VGI Philly first urged state officials to consider supporting the state’s burgeoning video game community, State Senator Daylin Leach (D-17) has introduced the video game tax credit bill to the state legislature [PDF link].
State Senate Bill #700 proposes a 25 percent tax credit for video game businesses based in Philadelphia. According to VGI Philly director Patrick DiFerdinando a similar bill was passed in Montreal that created 1200 jobs in 12 months.
Senator Leach’s office offered these details to Technically Philly in April:
The tax incentives would work just like the film production tax credit. A company would apply to the Department of Revenue for a qualifying production expense (or group of expenses such as physical space or computers, music or employees) and after approval and incursion of the expense in producing a video game in PA they would be awarded a tax credit. This tax credit can be used by the company that incurred it or it can be transferred to someone else. This helps the small companies be able to use the credit if they maybe dont have the tax liability of a larger production company and therefore dont have the income to offset with a credit.
The caps apply per production so each company can only apply for $1 million per production per year. The full program (or the dollars available as tax credits across PA) would be capped at $20 million. Once $20 million worth of productions had claimed credits the program would be done until the next fiscal year without a further appropriation of credit.
If passed, the resolution takes effect in 60 days.
h/t Ben Gilbert & VGI Philly
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