Entertainment and Media Tax Clip: British Columbia eliminates expiry dates for film tax credits (March 24, 2009)

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British Columbia's Bill 2, Budget Measures Implementation Act, 2009, which received royal assent on March 12, 2009:

  • Eliminates the March 31, 2013 expiry date for the Film Incentive B.C. Tax Credit and the May 31, 2013 expiry date for the B.C. Productions Services Tax Credit
  • Makes permanent the enhanced rates of 35% for the Film Incentive B.C. Tax Credit and 25% for the B.C. Production Services Tax Credit.

British Columbia's Bill 2, Budget Measures Implementation Act, 2009 implements 2009 budget measures that enhance the Film Incentive B.C. Tax Credit and the B.C. Production Services Tax Credit.

Film Incentive B.C. Tax Credit

The Film Incentive B.C. Tax Credit is available to Canadian-controlled corporations that produce films and videos in British Columbia. It is refundable tax credit that equals 35% of qualified B.C. labour, to a maximum of 16.8% of total production costs. Qualifying corporations may also be eligible for the:

  • Regional tax credit: 12.5% of qualified B.C. labour, to a maximum of 6% of total production costs, if more than 50% of the B.C. principal photography is outside the Vancouver area
  • Distance location tax credit: 6% of a portion of qualified B.C. labour for productions in a prescribed area that is outside Vancouver
  • Training tax credit: 3% of qualified B.C. labour on an approved training program, to a maximum of 30% of the trainees' salaries

Bill 2 eliminates the March 31, 2013 expiry date for this credit and makes permanent the 35% rate (it was to drop to 30% for productions with principal photography beginning after 2009). Bill 2 also extends the credit to all Canadian-controlled corporations (see Entertainment and Media Tax Clip: British Columbia extends film tax credit to all Canadian-controlled corporations (January 30, 2009)).

B.C. Production Services Tax Credit

The British Columbia Production Services Tax Credit provides domestic and foreign-based production companies that produce film and television productions in British Columbia a refundable tax credit equal to 25% of qualified B.C. labour. Qualifying corporations may also be eligible for the:

  • Regional tax credit: 6% of qualified B.C. labour, if more than 50% of the B.C. principal photography is outside the Vancouver area; and
  • Distance location tax credit: 6% of a portion of qualified B.C. labour for productions in a prescribed area that is outside Vancouver.

Bill 2 eliminates the May 31, 2013 expiry date for this credit and makes permanent the 25% rate (it was to drop to 18% for productions with principal photography beginning after 2009).

PricewaterhouseCoopers Comments

Film and video producers will welcome these changes. They are intended to help British Columbia continue to attract film and television productions.

See Budget 2009 — Budget and Fiscal Plan.