HB 1400 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in entertainment production tax credit, further providing for credit for qualified film production expenses and for penalty.

PRINTER'S NO.    1608

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1400
                                               Session of
                                                 2025

     INTRODUCED BY HANBIDGE, WAXMAN, GIRAL, SANCHEZ, CERRATO, HILL-
        EVANS, GUENST, RIVERA, FREEMAN, D. WILLIAMS, OTTEN, NEILSON,
        MALAGARI, CEPEDA-FREYTIZ AND SHUSTERMAN, MAY 5, 2025

     REFERRED TO COMMITTEE ON JUDICIARY, MAY 6, 2025


                                    AN ACT
 1   Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
 2      act relating to tax reform and State taxation by codifying
 3      and enumerating certain subjects of taxation and imposing
 4      taxes thereon; providing procedures for the payment,
 5      collection, administration and enforcement thereof; providing
 6      for tax credits in certain cases; conferring powers and
 7      imposing duties upon the Department of Revenue, certain
 8      employers, fiduciaries, individuals, persons, corporations
 9      and other entities; prescribing crimes, offenses and
10      penalties," in entertainment production tax credit, further
11      providing for credit for qualified film production expenses
12      and for penalty.
13      The General Assembly of the Commonwealth of Pennsylvania
14   hereby enacts as follows:
15      Section 1.    Section 1712-D(b) of the act of March 4, 1971
16   (P.L.6, No.2), known as the Tax Reform Code of 1971, is amended
17   by adding a paragraph and the section is amended by adding a
18   subsection to read:
19      Section 1712-D.    Credit for qualified film production
20   expenses.
21      * * *
22      (a.1)    Qualification.--To qualify for the credit under
 1   section 1712-D, any adult, paid or unpaid, reasonably expected
 2   to have direct contact with children during the production of a
 3   film, as defined in section 1711-D, shall submit materials
 4   consistent with 23 Pa.C.S. § 6344 (relating to employees having
 5   contact with children; adoptive and foster parents), if a child
 6   is among those individuals employed.
 7      (b)   Review and approval.--The department shall establish
 8   application periods not to exceed 90 days each. All applications
 9   received during the application period shall be reviewed and
10   evaluated by the department based on the following criteria:
11            * * *
12            (2.1)   The anticipated number of employees under 18 years
13      of age.
14            * * *
15      Section 2.     Section 1717-D of the act is amended to read:
16   Section 1717-D.    Penalty.
17      A taxpayer which claims a tax credit [and fails to incur the
18   amount of qualified film production expenses agreed to in
19   section 1712-D(c)(3) for a film in that taxable year] shall
20   repay to the Commonwealth the amount of the film production tax
21   credit claimed under this subarticle for the film[.] if:
22            (1)   the taxpayer fails to incur the amount of qualified
23      film production expenses agreed to in section 1712-D(c)(3)
24      for a film in that taxable year; or
25            (2)   the taxpayer fails to comply with the qualification
26      established in section 1712-D(a.1).
27      Section 3.     This act shall take effect in 180 days.




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