1Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2act relating to tax reform and State taxation by codifying
3and enumerating certain subjects of taxation and imposing
4taxes thereon; providing procedures for the payment,
5collection, administration and enforcement thereof; providing
6for tax credits in certain cases; conferring powers and
7imposing duties upon the Department of Revenue, certain
8employers, fiduciaries, individuals, persons, corporations
9and other entities; prescribing crimes, offenses and
10penalties," further providing for credit for qualified film 
11production expenses and for report to General Assembly; and 
12providing for diversity goals.

13The General Assembly of the Commonwealth of Pennsylvania
14hereby enacts as follows:

15Section 1. Section 1703-D(b) of the act of March 4, 1971
16(P.L.6, No.2), known as the Tax Reform Code of 1971, amended
17July 9, 2013 (P.L.270, No.52), is amended to read:

18Section 1703-D. Credit for qualified film production expenses.

19* * *

20(b) Review and approval.--The department shall establish 
21application periods not to exceed 90 days each. All applications 
22received during the application period shall be reviewed and
 

1evaluated by the department based on the following criteria:

2(1) The anticipated number of production days in a
3qualified production facility.

4(2) The anticipated number of Pennsylvania employees.

5(3) The number of preproduction days through
6postproduction days in Pennsylvania.

7(4) The anticipated number of days spent in Pennsylvania
8hotels.

9(5) The Pennsylvania production expenses in comparison
10to the production budget.

11(6) The use of studio resources.

12(6.1) The promotion and implementation of a diversity
13plan in order to ensure diversity and promote the
14participation of diverse groups by affording equal access to
15employment opportunities pursuant to section 1713-D.

16(7) Other criteria that the Director of the Pennsylvania
17Film Office deems appropriate to ensure maximum employment
18and benefit within this Commonwealth.

19Upon determining the taxpayer has incurred or will incur
20qualified film production expenses, the department may approve
21the taxpayer for a tax credit. Applications not approved may be 
22reviewed and considered in subsequent application periods. The 
23department may approve a taxpayer for a tax credit based on its 
24evaluation of the criteria under this subsection.

25* * *

26Section 2. Section 1711-D(a) of the act, added July 25, 2007
27(P.L.373, No.55), is amended to read:

28Section 1711-D. Report to General Assembly.

29(a) General rule.--No later than June 1, 2008, and September
301 of each year thereafter, the Secretary of Community and

1Economic Development shall submit a report to the General
2Assembly summarizing the effectiveness of the tax credit
3provided by this article. The report shall include the name of
4the film produced, the names of all taxpayers utilizing the
5credit as of the date of the report and the amount of credits
6approved for, utilized by or sold or assigned by each taxpayer.
7The report may also include any recommendations for changes in
8the calculation or administration of the tax credit. The report
9shall be submitted to the chairman and minority chairman of the
10Appropriations and Finance Committees of the Senate and the
11chairman and minority chairman of the Appropriations and Finance
12Committees of the House of Representatives. In addition to the
13information set forth above, the report shall include the
14following information, which shall be separated by geographic
15location within this Commonwealth:

16(1) The amount of credits claimed during the fiscal year
17by film.

18(2) The total amount spent in this Commonwealth during
19the fiscal year by film.

20(3) The total amount of tax revenues generated by this
21Commonwealth during the fiscal year by film.

22(4) The total number of jobs created during the fiscal
23year by film, including the duration of the jobs.

24(5) The total number of hires and employment offers
25made, including data relating to the race, gender and
26residence of those hired or offered employment.

27(6) All contracting and subcontracting data involving
28the taxpayer and minority-owned business enterprises and
29women-owned business enterprises.

30* * *

1Section 3. The act is amended by adding a section to read:

2Section 1713-D. Diversity goals.

3(a) Intent.--It is the intent and goal of the General
4Assembly that the Pennsylvania Film Office and the department
5promote and ensure diversity to enhance the representation of
6diverse groups in all aspects of the Film Production Tax Credit
7authorized under this section.

8(b) General rule.--The Pennsylvania Film Office and the
9department shall work with the taxpayer seeking a credit or a
10taxpayer under contract to enhance the representation of diverse
11groups, employees or business entities utilized under or
12associated with production expenses under this section.

13Section 4. This act shall take effect in 60 days.