Entertainment and Media Tax Clip: British Columbia extends film tax credit to all Canadian-controlled corporations (January 30, 2009)

For productions with principal photography beginning after December 31, 2008, the Film Incentive B.C. Tax Credit will now be available to all Canadian-controlled corporations — not just to B.C.-controlled Canadian corporations.

All Canadian-controlled corporations that produce films and videos in British Columbia will be eligible for the Film Incentive B.C. Tax Credit, for productions that begin principal photography after December 31, 2008. Previously, only B.C.-controlled Canadian corporations qualified for this credit.

The refundable tax credit equals 35% of qualified B.C. labour, to a maximum of 16.8% of total production costs (30% and 14.4%, respectively, for productions with principal photography beginning after 2009. Unless renewed, it will expire on March 31, 2013).

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

Therefore, a production that qualifies for all four tax credits can earn a credit equal to 56.5% of qualified B.C. labour.

PricewaterhouseCoopers Comments:

Canadian film and video producers will welcome this change. It makes B.C.'s film tax credit program requirements consistent with those in other provinces and is intended to help the province's film and video industry remain competitive.

For additional film incentives, see our Big Table of Film and Video Incentives in Canada.