Pennsylvania state senator Daylin Leach wants to give the video game industry a substantial tax credit to do business in the state, and he’s pushing a bill that will provide the cash. Yesterday he introduced a bill that would give videogame companies in the state a 25 percent tax credit. Pennsylvania Senate Bill 700 calls for $20 million in tax benefits to be dedicated annually to videogame projects where at least 60 percent of the expenses are within the state. While Leach is the sponsor of the bill, the Senator has the support of seven other senators, who are all members of the minority Democratic party.
The bill is scheduled for a vote in the Senate Finance Committee, which would lead to a full vote on the Senate floor if approved. The bill would need support from Republicans in the state assembly because they control the majority there, as well as the governor’s signature. Republican Governor Tom Corbett has been supportive of tax breaks for the videogame industry in the past, so if it is passed he would probably sign it into law.
About $33 million was cut from tax breaks offered to the movie industry in 2011, so it’s difficult to gauge whether new tax breaks have a chance of getting approved in the state.