Entertainment and Media Tax Clip: British Columbia introduces an interactive digital media tax credit and enhances film and digital animation tax credits (Feb. 8, 2010)
British Columbia introduces an interactive digital media tax credit and enhances film and digital animation tax credits.
British Columbia proposes to:
- introduce a 17.5% B.C. Interactive Digital Media Tax Credit for video game development for projects that begin after August 31, 2010;
- enhance:
- the Film Incentive B.C. Tax Credit by increasing the maximum basic tax credit claim to 21% (from 16.8%) of total production costs;
- the B.C. Production Services Tax Credit by increasing the tax credit rate to 33% (from 25%) of qualified B.C. labour; and
- the B.C. Digital Animation or Visual Effects Tax Credit by increasing the tax credit rate to 17.5% (from 15%) of qualified B.C. labour,
for qualifying productions with principal photography that begin after February 28, 2010.
Details will be released in the March 2, 2010 budget.
On February 3, 2010, British Columbia announced the following tax measures to help the province's film, digital media and video game sectors remain competitive.
B.C. Interactive Digital Media Tax Credit – New
A B.C. Interactive Digital Media Tax Credit will be available for qualifying video game development projects that begin after August 31, 2010. The credit will equal 17.5% of qualifying B.C. labour costs. The province's March 2, 2010 budget will provide details.
Film Incentive B.C. Tax Credit
The Film Incentive B.C. Tax Credit provides Canadian-controlled corporations that produce films and videos in British Columbia a refundable tax credit equal to 35% of qualified B.C. labour. Effective for productions with principal photography that begin after February 28, 2010, the maximum credit will increase to 21% (from 16.8%) of total production costs.
Qualifying corporations may also be eligible for the:
- Regional tax credit: 12.5% of pro-rated qualified B.C. labour, to a maximum of 6% of total production costs, if a minimum of five principal photography days and more than 50% of the B.C. principal photography days are outside the designated Vancouver area;
- Distance location tax credit: 6% of pro-rated qualified B.C. labour for principal photography in a prescribed area that is outside Vancouver; and
- Training tax credit: 3% of qualified B.C. labour on an approved training program, to a maximum of 30% of the trainees' salaries.
B.C. Production Services Tax Credit
The B.C. Production Services Tax Credit is a refundable tax credit that is available to domestic and foreign-based production companies that produce film and television productions in British Columbia. Effective for productions with principal photography that begin after February 28, 2010, this credit will increase to 33% (from 25%) of qualified B.C. labour.
Qualifying corporations may also be eligible for the:
- Regional tax credit: 6% of pro-rated qualified B.C. labour, if a minimum of five principal photography days and more than 50% of the B.C. principal photography days are outside the designated Vancouver area; and
- Distance location tax credit: 6% of pro-rated qualified B.C. labour for principal photography in a prescribed area that is outside Vancouver.
B.C. Digital Animation or Visual Effects Tax Credit
For productions with principal photography that begin after February 28, 2010, the B.C. Digital Animation or Visual Effects Tax Credit rate will increase to 17.5% (from 15%) of qualified B.C. labour directly attributable to digital animation or visual effects activities. This credit is available only to companies that claim the basic Film Incentive B.C. Tax Credit or the B.C. Production Services Tax Credit.
