New Film Tax Credit Rates give Industry Certainty and Protect Taxpayers

The government announced with Budget 2016 its intention to work with the film and television industry to address the rising cost of the province’s production services tax credit for film and television.

Under the current rates, the subsidy was forecast to cost nearly $500 million in 2015-16, up from an average of $313 million over the past three years, and an average of $182 million over the five years prior to 2012-13.

The Province announced in the February budget it would establish an industry-government working group with representatives from the film and television industry. These meetings helped the Province understand the industry’s perspectives and provided an opportunity to discuss potential options.

Subject to the approval of the legislature and the implementation of the necessary regulations, for principal photography beginning on or after Oct 1, 2016, the basic production services tax credit rate will be set at 28%, down from 33%, and the digital animation or visual effects (DAVE) tax credit rate will be set at 16%, down from 17.5%.

The Province is providing a transitional period to recognize the investments already planned for British Columbia. For example, the amendments will allow all episodes in one season of a television series to continue at the current tax credit rates if principal photography for the first episode begins prior to Oct 1, 2016.

To read the full press release.

For information on the transitional provisions regarding these tax credit changes, click here.