It is no secret that it is a tumultuous time in the video game industry. With 35,000 layoffs in the last couple of years, video game studios and developers need all the help they can get. This is why we’re disappointed in Governor Shapiro’s proposal to cut the video game production tax credit from the Pennsylvania state budget.

Since 2017, the Video Game Production Tax Credit has given game studios the financial support necessary to find new clients between projects or create full-time jobs. By removing this credit, Pennsylvania will significantly harm businesses currently operating within the state. Meanwhile, other states that have shown continued support to the video game industry will draw new business that may have considered Pennsylvania instead. Georgia, for example, has generated nearly one billion dollars in revenue and supported hundreds of jobs within the games industry.

Despite recent setbacks, the video game industry remains the most profitable entertainment industry, estimated to have generated 184 billion dollars in 2024 by games data platform Newzoo. This is why IGDA Philadelphia strongly believes that Pennsylvania should invest more in our industry, its studios and developers, not less. We call upon the state to maintain the current tax credit, as well as consider expanding the credit cap to make Pennsylvania a more desirable choice for new businesses in our industry. If you are a resident of Pennsylvania, consider sending a letter of support to maintain the production tax credit to your elected officials and Governor Shapiro by using this form from the Pittsburgh Technology Council. If you are the head of a studio who may be impacted by the loss of the production tax credit, you may use this form.