New proposal seeks $20 million annual tax relief for local studios
Pennsylvania is set to become the seventeenth US state to offer tax breaks to its games studios, if a new bill is approved.
State senator Daylin Leach has drafted a bill that offers a “25 percent tax credit for video game businesses”, likely targeted on production expenses.
Under the bill, each Pennsylvania-based studio can only apply for a tax relief for one project per year.
No applicant would be granted more than $1 million in tax breaks per year, and the full program would be annually capped at $20 million.
Leach’s bill, if passed, would be enacted in 60 days. Hurdles ahead include a preliminary vote at the Senate Finance Committee, followed by a full Senate vote.
“The bill would also need support from the Republican-controlled General Assembly and a signature from the governor before becoming law”, according to regional publication TechnicallyPhilly.
If passed, Pennsylvania would become the seventeenth US state to have a working games tax breaks model.
A list of US States employing tax breaks follows: