PA. Let QVC Cable Channel Avoid $4 Million in Taxes in One Year, with much more to come
Our illustrious Governor says he can't adequately fund public schools because "the money just isn't there." Well, it would be there if you didn't let QVC receive multiple millions in state tax credits to hawk cubic zirconium, if you actually adopted a gas extraction tax like Texas has, and if you really closed the Delaware Loophole that lets multi-nationals avoid tens of millions of PA. taxes on profits they made in PA.
http://www.philly.com/philly/business/QVC_signs_up_for_15_easy_payments__37M_in_taxpayer_money.html
The state has a tax credit program that was designed to attract the production of major movies into PA. Surprisingly, it is being mis-used by QVC cable channel to subsidize the costs of their TV shows, which are broadcast on a daily basis from their studios near West Chester, PA.
Excerpts:
"QVC got about $3.7 million worth of tax credits in fiscal 2011-12 for 15 different shows. The state awarded the credits the previous year, and QVC received them post-production, as part of the Film Production Tax Credit Program. Under the umbrella of the Department of Community and Economic Development, state officials promote the tax credit program as a way to create jobs.
Policy analysts from across the political spectrum see it a glitzy form of crony capitalism.
The QVC projects created a total of 227 full-time equivalent jobs and generated $976,312 in state and local taxes. That same year, QVC was authorized for an additional $2.5 million in tax credits for 48 productions, which had not been completed by the years end, according to state data."