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The federal and provincial budgets tabled for 2003 brought some
changes to each of the federal and provincial tax credits.
The Federal Government increased the Federal Film and Video Production
Services Tax Credit by 5%. This is a labour based tax credit available
to both Canadian and foreign producers filming in Canada. Producers
can now receive a refundable tax credit of 16% of their eligible
labour expenditures.
Unfortunately for independent Canadian television producers, the
budget for the Canadian Television Fund has been slashed by $25
million dollars a year for the next two years- this represents a
25% reduction in the CTF budget.
The BC provincial government has added a new tax credit for digital
animation or visual effects and has re-organized the regional incentives
for both Film and Television Tax Credit (“FTTC”) and the
Production Services Tax Credit (“PSTC”).
The new digital animation or visual effects tax credit is available
to producers who qualify for either the FTTC or the PSTC. It is
a refundable tax credit that applies to 15% of labour expenses directly
related to the digital animation or visual effects activities for
principal photography that began after March 31, 2003. More information
is available on the digital animation credit at www.rev.gov.bc.ca/itb/filmcred/film.htm
.
The regional incentive has changed for both the FTTC and the PSTC.
In both cases the regional incentive can only be claimed if the
production has claimed the FTTC or the PSTC (as applicable) and
principal photography is outside of Vancouver (but still in BC)
for a minimum of 5 days and at least half of the total number of
days of principal photography take place in BC. The regional FTTC
remains at 12.5% of the qualified BC labour expenditure but is now
prorated by the proportion of days of principal photography outside
of Vancouver (but still in BC) to the total number of days of principal
photography in BC. The credit for the regional PSTC is 6%. More
information on the regional credits is available at www.rev.gov.bc.ca/itb/filmcred/film.htm
(FTTC) and www.rev.gov.bc.ca/itb/prodserv/prod.htm
(PSTC).
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