Netflix and other companies receive $9 million in tax credits. How do film tax credits work in Pennsylvania?A still from Mechanicsburg native Shane Gillis' Netflix comedy "Tires." Season two is currently being produced in Philadelphia and will premiere on Netflix in 2025.
For example, on a $1 million production, at least $600,000 must be spent on in-state expenses such as payroll, travel, or postproduction costs. The 25% tax break only applies to the in-state expenditures, not the total budget. “I have to sell the credit to a Pennsylvania taxpayer, mostly corporate but it could be in individual, who expects to get a slight discount,” Katz said. “If I’m a corporation and I have a $100,000 tax liability, I can give a filmmaker $93,000 for their $100,000 tax credit from the state, and save $7,000 on my corporate taxes.”
The IFO confirmed these findings and noted their most recent analysis lines up with other reports produced by state agencies.