Entertainment and Media Tax Clip: Saskatchewan Film Employment Tax Credit enhanced and refined (February 25, 2009)

The Saskatchewan government will extend the deeming provision of the film employment tax credit by three years to December 31, 2011. The provision treats out-of-province professionals as Saskatchewan residents if they train local film production employees while working in the province.

Other regulatory amendments to the Saskatchewan Film Employment Tax Credit (SFETC) will:

  • Update the list1 of positions that qualify for the key position bonus credit
  • Ensure that employment statistics for each production are included in the final application for the SFETC

SFETC is a refundable tax credit available to Saskatchewan-controlled Canadian taxable corporations that produce film or television productions in the province. The credit equals 45% of eligible Saskatchewan labour, to a maximum of 22.5% of total production costs, and requires that a minimum of 25% of salaries and wages are paid to Saskatchewan residents. Qualifying corporations may also be eligible for:

  • The Rural Credit: 5% of total Saskatchewan productions costs for operations 40 kilometres outside Saskatoon or Regina
  • The Key Position Bonus Credit: 5% of eligible labour

Therefore, a production that qualifies for all three tax credits can earn a credit equal to 55% of qualified Saskatchewan labour.

PricewaterhouseCoopers Comments:

Saskatchewan film productions will welcome the extension to the deeming provision. The credit will help the province continue to attract film and television productions.

1 The updated list is: costume designer, first assistant director, property master, dolly grip, key grip, locations manager, production coordinator, production designer, construction coordinator and sound recordist.