New proposal seeks $20 million annual tax relief for local studios

Tax break hopes for Pennsylvania state

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:

Alabama
Arkansas
Connecticut
Florida
Georgia
Hawaii
Kentucky
Maine
Massachusetts
New Mexico
North Carolina
Ohio
Rhode Island
Texas
Virginia
Wisconsin

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