FIBC Tax Credits: Initial Licensing

Are you planning your next Canadian content film? Be sure to know the initial licensing rule.

Under Film Incentive BC, for productions that are not treaty co-productions or interprovincial co-productions, the initial licensing of the commercial exploitation of the production must be controlled by

• the BC-based eligible production corporation that controls more than 50% of the copyright; or
• an eligible production corporation related to the above-stated corporation.

See Section 80(1)(g) of Income Tax Act (BC) which requires that the production corporation, or a related eligible production corporation, controls the initial licensing of the commercial exploitation of the production and Section 79 (1) for definitions “eligible production corporation” and “BC-based corporation”.

Joanne Chow
Senior Business Analyst, Motion Picture Tax Credits
jchow(at)creativebc.com

This post is intended as a general overview. It is not exhaustive and should not be relied upon to determine eligibility or the final amount of an anticipated tax credit. In case of any discrepancies between this post and the Income Tax Act (BC) and Regulations (the “Act”), the provisions of the Act prevail.