Entertainment and Media Tax Clip: Quebec enhances film and television tax credits (November 25, 2009)

Quebec Bill 64, which implements the province's January 2009 economic statement, enhanced the province’s film and television tax credits for qualified labour expenditures incurred after 2008. The enhancements:

• Increase the Film and Television Production Tax Credit (FTPTC) base rates
• Introduce an additional 10% FTPTC for a fiction feature film or single documentary made without public financial assistance
• Eliminate the FTPTC cap of $2,187,500 per film or series
• Increase the maximum FTPTC and Computer Animation and Special Effects Tax Credit (CASETC) rate for a production from 48.5625% to 65%Rounds the FTPTC regional bonus rates and the CASETC rate

Quebec enhances its film industry refundable tax credits as follows:

See chart: Changes in Quebec Bill 64

The per film or television series tax credit cap of $2,187,500 that applies to the FTPTC will also be eliminated for qualified labour expenditures incurred after 2008. Transitional rules will apply to productions in which the qualified labour expenditures are incurred both before January 1, 2009 and after December 31, 2008.

PricewaterhouseCoopers Comments

Quebec film and video productions will welcome these changes as they intend to help the province's film and video industry remain competitive.