Entertainment and Media Tax Clip: New Brunswick's multimedia funding initiative replaces the film tax credit (April 5, 2012)

In November 2011, New Brunswick introduced the Multimedia Initiative to support the province's film, television and new media industry, and replace its Film Tax Credit.

Commencing November 22, 2011, this new incentive provides funding to eligible corporations of 25% to 30% of eligible expenditures incurred in New Brunswick, depending on the project genre and company eligibility. To qualify, a corporation must hold assets under $25 million at any time during the taxation year.

Eligible expenditures
Eligible expenditures include salaries, goods and/or services incurred and paid in New Brunswick. Exceptions apply, such as for goods or services deemed essential, but are not available in New Brunswick.

Eligible corporation
Generally, an eligible corporation must meet the following conditions:

Public corporation Private corporation
Be incorporated and have a permanent establishment in New Brunswick
n/a Have its head office and principal place of business in New Brunswick
Demonstrate that its primary purpose is the domestic or collaborative production of film, television and interactive new-media products
Is effectively controlled by New Brunswick residents 51% or more of voting shares are owned by New Brunswick residents
51% or more of the Board of Directors and/or voting members of the Board are New Brunswick residents, and maintain their positions for the entire production Have directors that are New Brunswick residents
Hold assets under $25 million at any time during the taxation year

Co-productions (intra-provincial, inter-provincial and international) may qualify for funding if certain criteria are met.

New Brunswick film tax credit
New Brunswick's 2011 budget phased out its film tax credit. The credit continues to apply to:

  • pre-production applications that were:
    • approved before March 22, 2011; or
    • received before April 6, 2011, that receive pre-approval; and
  • productions that received a development loan or equity investment from the Wellness, Culture and Sport before March 22, 2011.

The film tax credit, a refundable tax credit available to corporations that produce film, television or video productions in the province, is summarized in the table below.

  Eligible New Brunswick labour incurred
Base tax credit rate 40% (1)
Regional bonus tax credit rate (2) 10%
Maximum tax credit rate 50%

(1) The maximum credit cannot exceed 20% of total production costs.
(2) To qualify for the regional bonus, the production must take place more than 50 km from the three largest cities (i.e., Fredericton, Moncton, Saint John).

PwC comments
The Multimedia Initiative is intended to support New Brunswick based production companies and encourage hiring and training of New Brunswick residents in the film, television and new media industry. This new incentive is limited to corporations that do not exceed an asset threshold. It effectively replaces the province's film tax credit.

For more information, see Film, Television and New Media - NB Multimedia Initiative - Funding Support .

For more film, video and digital media incentives, see PwC's: