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Tom is a filmmaker, producer, and marketing specialist based in Los Angeles.
At Wrapbook, we pride ourselves on providing outstanding free resources to producers and their crews, but this post is for informational purposes only as of the date above. The content on our website is not intended to provide and should not be relied on for legal, accounting, or tax advice. You should consult with your own legal, accounting, or tax advisors to determine how this general information may apply to your specific circumstances.
Pennsylvania has emerged as a go-to destination for film and television production, thanks to its remarkable versatility and production-friendly infrastructure.
From the wooded slopes of the Poconos to the farmland of Lancaster County, and from the quiet suburbs to the bustling energy of cities like Pittsburgh and Philadelphia, the Commonwealth offers a wide range of locations that can double for almost anywhere in the world—or serve as distinctive backdrops in their own right.
But it’s not just about the scenery. Pennsylvania’s proximity to major East Coast hubs like New York and Washington, D.C., combined with highly skilled local crews and competitive labor costs, gives producers the flexibility they need to scale efficiently.
That’s why award-winning films like Silver Linings Playbook, Creed, and A Beautiful Day in the Neighborhood all chose to shoot in the Keystone State.
More recently, Netflix’s Tires and Sight & Sound’s A Great Awakening have brought renewed attention to the region—together generating over $32 million in economic activity while supporting hundreds of local jobs.
And then of course there’s filmmaker and Pennsylvania-native M. Night Shyamalan. Alongside his production company Blinding Edge Pictures, Shyamalan has filmed a number of modern classics in the Commonwealth, including The Sixth Sense, Unbreakable, and Signs.
With perks like waived fees for state-owned locations and a hotel occupancy tax exemption for extended stays, Pennsylvania doesn’t just welcome productions—it invests in them. The result is a state that’s both creatively rich and financially competitive, making it a standout choice for projects of any size.
At the heart of Pennsylvania’s thriving production ecosystem is the Pennsylvania film tax credit. This powerful production incentive was signed into law in 2007 to stimulate economic development and grow the state’s entertainment industry.
Since its launch, the Pennsylvania film tax credit has injected over $3 billion into the state’s economy and supported thousands of jobs. From national television series to indie features, the incentive has played a defining role in keeping cameras rolling throughout the Commonwealth.
Recognizing the return on investment, Pennsylvania lawmakers have consistently reaffirmed their support for the program. Today, the film tax credit Pennsylvania offers is funded at $100 million annually, providing long-term stability for producers considering multi-year projects or returning series.
At the core of Pennsylvania’s production incentive is a 25% to 30% transferable tax credit for qualified in-state production and post-production expenses.
Unlike refundable incentives, the film tax credit Pennsylvania offers is transferable—meaning that if your company doesn’t have sufficient Pennsylvania tax liability, the credit can be sold to another taxpayer. This ensures that producers can still realize meaningful savings even without an in-state corporate footprint.
One of the most producer-friendly aspects of the Pennsylvania film tax credit is the lack of a minimum spend threshold. Instead, the program bases eligibility on spend ratio: at least 60% of your total production budget (including pre-production, production, and post) must be incurred in Pennsylvania.
That flexibility makes the Pennsylvania film tax credit accessible to productions of all sizes—from big-budget features to web series and pilots. However, there is one limitation producers should be aware of: no single project can be awarded more than 20% of the program’s total available funding at the time of application.
Still, with a funding pool of $100 million annually, the program remains one of the most generous and stable in the country—especially for producers who understand how to align their budget structure with the state’s incentive guidelines.
The Pennsylvania film tax credit covers a wide array of content types, including:
Productions featuring news, current events, weather and market reports, public programming, sports events, awards shows or other gala events, and content intended for private, political, or industrial purposes are not eligible for Pennsylvania film tax credits.
You’re in luck—the Pennsylvania film tax credit is designed with producers in mind. With a generous base credit of 25%, most in-state production and post-production expenses qualify, making the program one of the most accessible and flexible incentives in the country.
The credit is rooted in local, verifiable spend. That means payroll for cast and crew, location rentals, set construction, equipment, editorial services, and even VFX work can all count toward your credit—as long as the work is done in Pennsylvania.
There is one key caveat for above-the-line talent: the program includes a $15 million aggregate cap on compensation for principal performers. Whether those payments are made directly or through a loan-out, only the first $15 million paid to lead talent is eligible for the credit.
Additionally, if you’re hiring cast or crew from Indiana, Maryland, New Jersey, Ohio, Virginia, and West Virginia, those individuals are not required to have Pennsylvania personal income tax withheld. It is critical, however, that workers claiming this reciprocity status complete a REV-419 form as part of their start paperwork to remain compliant.
Don’t underestimate the value of Pennsylvania for post. Even if principal photography happens elsewhere, post-production services performed in-state—like editing, sound design, and VFX—are fully eligible for the base 25% credit.
Better yet, projects that conduct post at a Qualified Post-Production Facility (QPPF) may receive a 30% credit on post expenditures. That includes stand-alone post-production projects, which don’t need to be bundled with principal photography to qualify.
If your post work doesn’t take place at a QPPF, no problem—those expenses can still qualify for the 25% base credit when bundled with your pre-production and production costs. For post-heavy genres like animation, reality TV, or documentary, this can mean substantial savings.
The savings don’t stop at 25%. Productions that shoot at a Qualified Production Facility (QPF) and meet certain criteria can receive an additional 5% uplift, pushing their total Pennsylvania film tax credit to 30%.
To qualify, productions with less than $30 million in in-state expenses must:
Productions with $30 million or more in Pennsylvania expenses must:
A list of Qualified Production Facilities can be found here.
In order to qualify for Pennsylvania film tax credits, productions must meet a few important requirements.
As previously mentioned, at least 60% of total production spending (including pre-production, production, and post) must be incurred in Pennsylvania. This spend requirement is relative, not absolute, which means projects of any size can qualify, provided they allocate a majority of their budget locally.
In addition to meeting the in-state spend threshold, productions must demonstrate financial readiness. That means at least 70% of the production’s total financing must be secured at the time of application, with the remaining 30% expected to be in place before cameras roll.
Importantly, the film tax credit Pennsylvania offers is not first-come, first-served. Applications are reviewed quarterly and evaluated based on a variety of factors, including the project’s economic impact, workforce development, and the likelihood of completion.
If approved, applicants must submit final documentation, including a CPA audit, to receive the credit.
Applying for the Pennsylvania film tax credit is a multi-step process, but one that’s designed to be transparent and organized.
Start by creating an account on the state’s eGrants portal, which serves as the central hub for submitting your application. You may apply no sooner than 90 days before the start of principal photography.
Your application package should include:
Applications are reviewed during one of four quarterly cycles:
If your application is approved, you’ll enter into a contract with the DCED, formalizing your participation in the program.
After production wraps, submit your final cost report and CPA audit to validate all qualified in-state expenses. Upon approval, the DCED will issue your tax credit certificate, which can be used to offset Pennsylvania tax liability—or transferred (sold) to another party if your company doesn’t have in-state obligations.
By leveraging Pennsylvania film tax credits, you can keep your production on budget, access talented local crews, and tap into a network of post-production professionals—all while telling your story against one of the most visually diverse backdrops in the country.
To see how the Pennsylvania film tax credit compares with other incentives nationwide, visit Wrapbook’s Production Incentive Center. Whether you're just exploring or ready to roll cameras in the Keystone State, the film tax credit Pennsylvania offers is ready to work for you.
From the historic, cobblestoned streets of Philadelphia to the shores of Lake Erie, Pennsylvania offers filmmakers a diverse backdrop of urban grit and natural grandeur.
Thanks to the Pennsylvania film tax credit, producers can take advantage of the Keystone State’s versatility while significantly reducing their bottom line.
In this guide, we’ll walk through the ins and outs of the Pennsylvania film tax credit—what it entails, who qualifies, and how to apply—so you and your team can maximize savings on your next Pennsylvania film shoot.
Before we get into the nitty gritty of the Pennsylvania film tax credit, we invite you to visit Wrapbook’s Production Incentive Center—your one-stop shop for researching film tax credits, grants, and rebate programs across the country.
With an interactive state-by-state map and a powerful comparison tool, Wrapbook makes it easy to find out how production incentives like Pennsylvania’s stack up against others offered in states like California, Georgia, New York, and New Mexico.
Whether you’re chasing above-the-line savings or looking to boost your post-production budget, Wrapbook’s Production Incentive Center is an essential resource that can help you plan smarter and spend more effectively wherever you film.
