Pennsylvania considering tax break

TIGA added that policy makers in the UK should invest in the video game development sector in order to ensure that the UK wins a growing share of the expanding international video games industry market.

Pennsylvania is set to become the seventeenth state in the USA to offer tax breaks to its games studios, if the new legislation is approved.  State senator Daylin Leach has drafted a bill that offers a 25 percent tax credit for video game businesses, probably targeted on production expenses. According to the Bill, each Pennsylvania-based studio can apply for a tax relief for one project per annum. No applicant would be granted more than $1 million in tax breaks each year. The full programme would be capped at $20 million per annum.

Dr. Richard Wilson, TIGA CEO, stated:

“The news from Pennsylvania confirms that many governments around the globe recognise the inherent value of video game development. The sector is characterised by high technology, high skilled employment, is typically export oriented and low carbon in output.

“The global market for video games is growing, yet the UK could miss out on this growth unless policy makers take steps to create a favourable tax environment for game development. The UK Government rightly improved the Small Firms R&D Tax Credit in the March 2011 Budget. Yet there is much more still to do. The Government should re-examine the case for Games Tax Relief or a similar measure to enable the UK to compete on a level playing field. The R&D Tax Credit should also be further enhanced. Policy makers should also look at TIGA’s idea of developing a Creative Content Fund to finance new content development.“

“Tiga will continue to refine and enhance our proposals for Games Tax Relief and better R and D Tax Credits and we look forward to liaising with Government about our proposals.”


Notes to editors:

About TIGA:

TIGA is the trade association representing the UK’s games industry. The majority of our members are either independent games developers or in-house publisher owned developers. We also have games publishers, outsourcing companies, technology businesses and universities amongst our membership. TIGA was awarded‘Trade Association of the Year’ and the‘Member Recruitment Award’ at the Trade Association Forum Best Practice Awards 2010. TIGA has also been named as a finalist in the 2010 Chartered Management Institute (CMI) National Management and Leadership Awards in the category of‘The Outstanding Organisation of the Year Award (SME)’. TIGA is an Investors in People organisation.

TIGA's vision is to make the UK the best place in the world to do games business.  We focus on three sets of activities: political representation, generating media coverage and developing services that enhance the competitiveness of our members.  This means that TIGA members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and improved commercial opportunities.

For further information, please contact Dr Richard Wilson, TIGA CEO on 07875939643: or email; or contact David Hodges on 02070911653


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