General FAQ
Are Screenwriters Eligible?
The Film Incentive BC Tax Credit has been expanded to add a 35% Scriptwriting Tax Credit for expenditures incurred on or after February 21, 2018. The expansion will include BC labour for scriptwriting expenditures incurred by a corporation prior to the completion of the final script stage of the production and must be claimed in the taxation year in which principal photography of the production begins. The cost of purchasing a script is not an eligible scriptwriting expense.
How is FIBC administered?
Creative BC processes the eligibility and completion applications and issues the certificates. The certifying authority is the Ministry of Tourism, Arts and Culture. The Canada Revenue Agency reviews and audits claims and issues refund cheques where appropriate.
Who can claim FIBC?
The FIBC credit may be claimed by an eligible production corporation. Please see the Ministry of Finance website for more information on the eligibility requirements: British Columbia Film and Television Tax Credit.
Is the credit refundable?
Yes, the credit is refundable to the extent it exceeds the corporation’s income tax payable.
How do I claim FIBC?
The credit is claimed when filing the T2 Corporation Income Tax Return. A completed claim form (T1196) and eligibility certificate for each production should be attached to the top of the T2 form.
We haven't set the fiscal year end for the production corporation yet. Is this a problem?
Yes. We need to have the production corporation’s fiscal year-end before we can issue the eligibility certificate since completion and filing deadlines are set from this date. If the corporate fiscal year-end changes, please notify us.
When should I apply for an eligibility certificate?
Production companies are encouraged to apply for an eligibility certificate as early as possible in the pre-production or production stage. This allows time to address any issues that may put a production offside prior to the start of the production. Documents required when submitting an application are set out in the FIBC Checklist. Please note that the eligibility certificate will not be issued until principal photography has commenced.
Is there a time limit to apply for and receive a completion certificate?
Yes. A completion certificate must be issued by Creative BC within 30 months from the end of the corporation’s tax year in which principal photography began.
However, if the production is started and completed in a single tax year, corporations only have 18 months from the end of the tax year in which the production is completed to receive the completion certificate and submit it to CRA along with the T2 corporate income tax return. This 18-month CRA filing deadline will be sooner than the 30-month completion certificate deadline for these shorter production cycles. Learn more about CRA filing deadlines here and about completion certificate required in the final tax year of production here.
Documents required at the time of application are set out in the FIBC Checklist. If you fail to submit your application and documents on time, or do not allow Creative BC sufficient time to issue the completion certificate (standard processing time for a completion application is up to 4 months), your eligibility certificate may be revoked and your tax credit claim(s) denied. If the eligibility certificate is revoked, the production corporation is not entitled to FIBC and must repay any FIBC tax credits received for that production. If you do not provide your completion certificate to CRA by the filing deadline for your final year of production, your tax credit claim for that tax year may be denied.
Refer to the recent updates on the FIBC claim deadline extensions and completion certificate requirements in the proposed changes in the Budget 2026 announcement, effective upon royal assent.
| Production | Production 1 | Production 2 | Production 3 |
|---|---|---|---|
| Principal photography / Key animation (PP/KA) start date | Jan 01, 2021 | Jan 01, 2021 | Jan 01, 2021 |
| Production Completion Date | Dec 30, 2021 | Dec 30, 2022 | Dec 30, 2023 |
| Time between PP/KA Start and Production Completion | 1 Year | 2 Years | 3 Years |
| Taxation Year End (TYE) | Dec 31 | Dec 31 | Dec 31 |
| First TYE after PP/KA start date | Dec 31, 2021 | Dec 31, 2021 | Dec 31, 2021 |
| Final Taxation Year-end of Production | Dec 31, 2021 | Dec 31, 2022 | Dec 31, 2023 |
| 24-month deadline – Production must complete before this date | Dec 31, 2023 | Dec 31, 2023 | Dec 31, 2023 |
| 30-month deadline – ProdCo must receive Completion Certificate before this date | Jun 30, 2024 | Jun 30, 2024 | Jun 30, 2024 |
Production 1
Production 2
Production 3
| CRA filing deadline for the following Taxation Year: | Production 1 | Production 2 | Production 3 |
|---|---|---|---|
| 1st Taxation Year (Ending Dec 31, 2021) Eligibility Certificate required. |
Jun 30, 2023 (Eligibility + Completion) |
Jun 30, 2023 (Eligibility) |
Jun 30, 2023 (Eligibility) |
| 2nd Taxation Year (Ending Dec 31, 2022) | N/A | Jun 30, 2024 (Completion) |
Jun 30, 2024 (Eligibility) |
| 3rd Taxation Year (Ending Dec 31, 2023) | N/A | N/A | Jun 30, 2025 (Completion) |
| Final Taxation Year Completion Certificate required. |
Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2025 |
| Date Completion Certificate Must Be Submitted to the CRA | Jun 30, 2023 | Jun 30, 2024 | Jun 30, 2024 |
Production 1
Eligibility Cert. required Jun 30, 2023
(Eligibility + Completion)
Completion Cert. required Jun 30, 2023
Production 2
Eligibility Cert. required Jun 30, 2023
(Eligibility)
(Completion)
Completion Cert. required Jun 30, 2024
Production 3
Eligibility Cert. required Jun 30, 2023
(Eligibility)
(Eligibility)
(Completion)
Completion Cert. required Jun 30, 2025
What is the time limit for making a claim with CRA for the FIBC?
For taxation years beginning on or after February 19, 2020, the claim form (T1196), eligibility certificate and T2 must be filed with the Canada Revenue Agency (CRA) within 18 months from the end of the tax year in which the FIBC is being claimed. The CRA will not process claims that are filed late or that are missing the required documents by the deadline.
For example, a production company’s taxation year starts on April 1, 2020. The company’s fiscal year end is March 31, 2021. The production company has until September 30, 2022, to claim the tax credits with CRA related to BC labour expenditures incurred in that fiscal year. This would be Claim 1.
If the production company continued to incur qualified BC labour expenditures for a production until May 31, 2021, the tax credits for the fiscal year ending March 31, 2022 must be claimed with CRA by September 30, 2023. This would be Claim 2.
Refer to the recent updates on the FIBC claim deadline extensions and completion certificate requirements in the proposed changes in the Budget 2026 announcement, effective upon royal assent.
** Please note that for taxation years beginning before February 19, 2020, the filing period with CRA is 36 months from the fiscal year end of the production corporation.
How long does it take to get an eligibility or completion certificate?
Our service standard is to process applications within 120 days from the date we receive a complete application, 90% of the time. Incomplete applications, outstanding information or missing documents will delay the issuing of certificates.
How long does it take to get a refund?
The Canada Revenue Agency Film Services Units try to complete their work on a claim within 60 days for a complete claim that is not selected for an audit, or within 120 days when an audit is performed. The complete file is then forwarded to your tax centre for assessment. A refund cheque is issued within a few days where applicable.
We need to have the eligibility or completion certificate amended. What is the procedure?
Please email your request to Creative BC at attachments@creativebc.com, referencing the name of the production and the application number. Please note that we will likely need additional back-up supporting the amendment request.
There is a fee of $200 + GST for an amended certificate when the application to amend is being assessed separately from the completion application.
What is "Principal Photography"?
For Live Action Productions:
“Principal photography”, for scripted productions, is the filming of the main unit of the production, with principals and majority key creatives present on set, distinct from second unit, splinter unit, development filming or similar.
“Principal photography”, for unscripted productions, such as documentaries, factual and lifestyle, is the filming of the main unit of the production, with subjects (if applicable) and majority key creatives present on set during which the primary footage of the production is filmed, distinct from the second unit, development filming or similar.
For Animated Productions:
Principal photography is the beginning of key animation.
“Key animation” is the pivotal moment in the animation process that defines/encapsulates the movement/emotion and provides key frames/ poses, setting the timing, life and expression of the character(s) in the sequence. The key animator’s work is part of the final print.
Principal Photography Start Date:
When the production begins filming of the main unit.
When is the production considered "Complete"?
“Complete”, in relation to a film or video production, means that the production has been finished and is commercially exploitable.
Production Completion Date is when the production exists in a final form and is ready for exploitation or delivery to a distributor, broadcaster or purchaser.
What are the requirements for a person to be considered B.C. labour?
The individual must be resident in B.C. and ordinarily resident in Canada as of December 31 of the year preceding the end of the fiscal year for which the tax credit is being claimed. For example, if the production corporation’s fiscal year end is March 31, 2013, the person must be resident in B.C. as of December 31, 2012, to be part of the corporation’s B.C. labour for that tax year.
Note that it must be established that the individual is also a resident of Canada when they have recently moved to Canada. This is assessed by the Canada Revenue Agency based on a number of factors indicating that the individual is not in Canada temporarily. Paying tax in BC in the previous calendar year is a good indicator, but is not necessarily the determining factor that the individual is a resident of B.C. for the purposes of the tax credit. To determine if the individual is a resident of Canada, refer to the CRA’s guidelines on Resident Status and Tax Obligations.
For further information, please refer to the CRA residency guidelines or contact the CRA Film Services Unit at 1-866-317-0473.
What documents are considered proof of B.C. residency?
The Canada Revenue Agency (CRA) requires a copy of any one of the following documents to support residency status:
- Notice of assessment (T1) showing that the individual is a resident of Canada/province for the relevant tax year;
- Letter from the CRA giving an opinion of the individual’s residency status in Canada for the relevant year(s)*;
- Long-term (one year or more) lease or purchase of a Canadian dwelling with utility and/or cell phone bills showing the individual is living at that Canadian address.
*After completing Form NR74, Determination of Residency Status (Entering Canada) or NR73, Determination of residency status (leaving Canada).
OR if none of the above documents are available, the CRA requires a copy of three of the following documents to support residency status.
- Copy of the last income tax return filed in the country of origin and/or any document filed with the foreign tax authority in which the individual has declared that they are no longer a resident.
- Short-term (less than a year) lease agreement or letter from a landlord supporting a rental agreement.
- Provincial/territorial health or services card for the individual, their spouse and/or dependant.
- Driver’s licence or vehicle registration from the relevant province/territory**.
- Professional association or union membership in Canada.
- Statements of accounts (ex. bank accounts, retirement savings plan, credit cards, securities accounts) from a Canadian branch of a financial institution.
**A provincial or territorial services card that includes health care and a driver’s licence will count as two documents.
For further information on residency status determination, refer to the CRA’s Residency Guidelines or contact the CRA Film Services Unit at 1-866-317-0473.
What are the requirements for a person to be considered a B.C. producer?
The individual must be a Canadian citizen or permanent resident of Canada who is subject to tax in B.C. on December 31 of the year before principal photography starts on the production.
Are kit rentals considered eligible labour expenditures?
The Film Incentive B.C. Tax Credit is calculated on labour expenditures paid to B.C.-based individuals. Kit rental charges are not direct labour expenditures as they are paid for the rental of the equipment or tools and not for the individual’s labour. If an individual is being paid as a contractor, the kit rentals are not permitted as eligible labour expenditures.
However, if the kit rental is paid to an employee and is included as a taxable benefit to the employee on his/her T4 and the relevant source deductions have been taken, kit rentals will be allowed to be included as an eligible labour expenditure. CRA’s Application Policy FIS 2006-01 provides further information on the inclusion of taxable benefits as labour expenditures.
Are fringes considered eligible labour expenditures?
Only if they are paid to an employee of the corporation and included as a taxable benefit on his or her T4. Fringes paid to contractors are not eligible. CRA’s Application Policy FIS 2006-01 provides further information on the inclusion of taxable benefits as labour expenditures.
Do you have a form that we need to use to show B.C. labour / Non-B.C. costs?
You can provide this information in your own format or, if you prefer, you can use our Schedule of B.C. / Non-B.C. Costs Template.
What are the rules for interprovincial co-productions?
An interprovincial co-production under the B.C. legislation is a production that is jointly produced in more than one province by corporations from each jurisdiction. Please refer to Program Summary for Interprovincial Co-Productions under the FIBC Tax Credits Overview FIBC Tax Credits Overview for further detailed information.
What are the rules for international treaty co-productions?
An international treaty co-production is a production that is jointly produced by two or more production companies under the terms of a co-production treaty between Canada and another country. Telefilm Canada is the certifying authority for treaty co-productions. Please contact Telefilm for further information and guidelines. Creative BC requires a Telefilm Preliminary Recommendation with the eligibility application and a Final Recommendation with the completion application.
Please refer to the Program Summary for International Treaty Co-Productions for further detailed information.
When the production is an interprovincial co-production or an international treaty co-production, what amount is used as the production cost limit when determining the labour cap calculation?
The production cost limit (i.e. the B.C. labour cap) may be calculated on the total global production costs net of assistance provided to all copyright owners in the production.
How is a production treated when it is both an interprovincial co-production and an international treaty co-production?
Creative BC treats these productions as international treaty co-productions and defers to Telefilm’s requirements. Note, however, that the B.C. production company must hold over 50% of the copyright between the other Canadian co-producers and other Canadian copyright holders.
For example, if 80% of the copyright in the production was held by the non-Canadian co-producer, then the B.C. company would have to hold over 50% of the remaining 20% Canadian-held copyright.
How does Creative BC define "reality" programs?
Reality programming consists of scenes recorded on private or public authority surveillance equipment. This category also includes programming currently known as court television and similar formats (e.g. “Cops”).
How do you verify that a company is "Canadian-controlled"?
For privately held companies, over 50% of the voting shares need to be held by Canadians. We do a look-through to the individual shareholders of the production corporation and any parent corporations (including parent corporations of parent corporations!).
To do this, we need the Schedule B (Certificate of an Officer), Corporate Share Register and Certificate of Incorporation for the production corporation and all parent corporations. For publicly-held corporations, please use our Public Corporation Affidavit.
What is a “permanent establishment” in a province for a production corporation?
A permanent establishment is usually a fixed place of business of the production corporation, which includes an office or studio.
If the corporation carries on business through an employee or an agent established in a particular place, it is considered to have a permanent establishment in that place if the employee or agent has general authority to contract for the corporation. A corporation that has a permanent establishment in British Columbia is considered a “B.C.-based corporation”.
An eligible production corporation claiming FIBC must be a Canadian-controlled taxable corporation primarily engaged in a film and video production business with a permanent establishment in BC during the taxation year.
Does an agreement with a sales agent meet the legislative requirement that there is a written agreement at fair market value with a Canadian-controlled distributor or arms-length Canadian broadcaster to have the production shown in Canada within 24 months
No. Agreements with sales agents are not accepted in lieu of agreements with Canadian distributors or broadcasters at fair market value.
I have private investors helping to finance my production. Is this OK?
It depends on the nature of the investment. A tax shelter investment will put the production offside. Note that investment by way of share purchase in the production corporation itself is usually acceptable. We recommend that you get independent legal advice on this issue.
Please contact CRA Film Services Unit if you have further questions.
What if I use crowdsourcing? Will this affect my tax credits?
The Canada Revenue Agency currently considers crowdsourcing (a.k.a. crowdfunding) assistance and therefore it may reduce the federal and provincial tax credits but it does not appear to put a production offside for tax credits. Please see the CRA’s application policy on this issue.
What "grinds" the tax credits? What does this mean?
When a financing source “grinds” the tax credits, it means that it is deducted from the total cost of production when calculating the B.C. labour cap. The following is a non-exhaustive list of ineligible costs that grind the B.C. tax credits:
- Website costs
- Promotional / marketing costs incurred after the production is complete
- 50% of craft services
- Tax credit application fees
- Crowdsourcing
- Grants
- Deferrals
- Non-recoupable advances
- Other provincial tax credits (not federal tax credits)
- Non-bona fide loans (please refer to CRA’s application policy on this issue and additional types of assistance)
Note that bona fide loans, equity financing and CAVCO (federal) tax credits do not grind the BC tax credits.
Is there an on-screen credit requirement for the tax credits?
Please see our FIBC on-screen credit request here.
If principal photography occurs within the designated Vancouver area (DVA) and outside the DVA on the same day, can the day be considered a regional day for the regional tax credit?
Yes, but only if principal photography (first unit shooting) on that day takes place substantially outside of the designated Vancouver area. For tax purposes, “substantially” is interpreted as 90% or more. Second unit shooting is not counted as principal photography.
We’re hiring a trainee for our production. Can we access the Film Training Tax Credit?
Our trainees are enrolled in an approved training program and their salary, wages or remuneration are partially covered by the program. Can I claim their total salary, wages, or remuneration under the Film Training Tax Credit?
Is the B.C. trainee labour expenditure eligible for the Film Training Tax Credit if financed by a grant or other source considered assistance?
No. Assistance in respect of B.C. trainee expenditure must be deducted from the amount claimed under the Film Training Tax Credit.
What documents are required to apply for the Film Training Tax Credit?
An eligible production corporation applying for the Film Training Tax Credit should provide a breakdown of eligible labour paid to each trainee on the production as well as evidence of training commitments in relation to the production (e.g., a letter or agreement with the institution or organization offering the approved training program).
What can prospective applicants provide to Creative BC to help Certifying authority assess if a program is an approved training program?
An eligible production corporation applying for the Film Training Tax Credit and/or an organization offering the training program in film and television production can provide the curriculum of the program, including terms and conditions, and examples of the trainee’s role(s) directly attributable to the production.
Which training roles are eligible for the Film Training Tax Credit?
All trainee roles performing work in relation to the production, provided the trainee is enrolled in an approved training program. Distribution and marketing trainees’ labour would not qualify for this bonus. Examples of trainee roles are Trainee Assistant Director, Camera Trainee, Trainee Assistant Location Manager, Trainee Grip, Trainee Production Sound.
More questions?
They may be answered elsewhere on our website or on the BC Ministry of Finance and CRA websites:
Disclaimer
PLEASE BE ADVISED that where there is a discrepancy between these FAQs and the Income Tax Act (BC) and Regulation (“The Act”, the provisions of The Act prevail. Creative BC cannot confirm whether a production will be eligible for tax credits until we have received a complete application and all corresponding documentation.
FIBC Rate Changes
How does the FIBC rate increase apply to an episodic production when production straddles January 1, 2025?
All episodes comprising one cycle of a series are considered a single production under the FIBC. The date principal photography started on the first episode produced for the entire cycle of the series will determine the basic tax credit rate applicable for the entire production.
For example: If an episodic production started principal photography on November 1, 2024 and completed on June 30, 2025, the basic tax credit rate for the entire episodic production would be 35%. Any episodes of that cycle that start principal photography on or after January 1, 2025 would not be eligible for the higher rate.
If principal photography starts outside B.C. prior to January 1, 2025 but production work in B.C. does not start until after January 1, 2025, is the production eligible for the higher FIBC rate?
No, the FIBC rate increase is based on the principal photography start date for the production, regardless of where principal photography started or when production work began in B.C.
For example: A co-production begins principal photography on December 1, 2024 in Ontario and production work begins in B.C. on February 1, 2025. Since principal photography of the production began on December 1, 2024, the production is not eligible for the higher rate.
FIBC Tax Credit Regional and Distant Location Tax Credits for Animation Productions
Who is eligible for the regional tax credit for animation productions that start principal photography on or after January 1, 2025?
The regional tax credit is available to corporations that produce animation productions that meet the following criteria:
- Principal photography of the production began on or after January 1, 2025
- The production is in a physical office in B.C. outside of the designated Vancouver area
- The production corporation incurs B.C. labour expenditures in respect of services provided by B.C.-based individuals working in the physical office for at least 50% of their time spent working on the animation production for the taxation year
- The production must be eligible for the basic tax credit and have received a valid eligibility certificate for the basic and the respective tax credits
- The production must have claimed or be making an application for the basic tax credits
What is a physical office?
A physical office means a building or part of a building, which is used to produce an animation production, that is not a dwelling unit, and that is owned or leased by either the corporation producing the animation production or a taxable Canadian corporation that controls that corporation. The physical office must be owned or leased for twelve consecutive months, or from the principal photography start date of the animation production until the date the animation production is completed, whichever is longer.
How is the regional tax credit calculated for animation productions that start principal photography on or after January 1, 2025?
The regional tax credit is a refundable credit, which will be available to animation productions with qualified B.C. labour expenditure in relation to services rendered by B.C.-based individuals in a physical office located outside of the designated Vancouver area. The credit is 12.5% of the qualified B.C. labour expenditure for the production for the taxation year that is attributable to the portion of the corporation’s B.C. labour expenditure that is for services provided by B.C.-based individuals working in the physical office for at least 50% of their time spent working on the animation production for the taxation year.
Who is eligible for the distant location regional tax credit for animation productions that start principal photography on or after January 1, 2025?
The distant location regional tax credit is available to corporations that produce animation productions that meet the following criteria:
- The production is in a physical office in B.C. in a distant location
- The production corporation incurs accredited B.C. labour expenditures in respect of services rendered by B.C.-based individuals who spend at least 50% of their time working on the production in the corporation’s physical office
- Principal photography for the production begins on or after January 1, 2025
- The production must be eligible for the basic and regional tax credits and have received a valid eligibility certificate
- The production must have claimed or be making an application for the basic and the regional tax credits
How is the distant location regional tax credit calculated for animation productions that start principal photography on or after January 1, 2025?
The distant location regional tax credit is a refundable credit, which will be available to animation productions with qualified BC labour expenditure in relation to services rendered by B.C.-based individuals in a physical office in a distant location. The credit is 6% of the qualified BC labour expenditure for the animation production for the taxation year that is attributable to the portion of the corporation’s B.C. labour expenditure that is for services provided by B.C.-based individuals working in the physical office for at least 50% of their time spent working on the animation production for the taxation year.
When does principal photography for animation productions begin?
Principal photography for animation productions begins when key animation begins.
If a production company hires a subcontractor to complete a project, and that company is also in a distant or regional location, do their employees also have to work at least 50% of the time in their physical office?
The employees of the subcontractor must also spend at least 50% of the time that they spend providing services related to the production in the physical office of the animation production corporation that is claiming the tax credit. This office must be located in a regional or distant location.
How will the certifying authority verify that a corporation meets the requirements for these credits?
An inspector for the certifying authority may enter any place used by a corporation to carry on business or keep records at any reasonable time to review the records and make copies. The certifying authority may require that further information or records be provided.
What happens if the certifying authority determines that the requirements for the credits have not been met or records have been falsified?
Non-compliance with the requirements may result in the denial or revocation of the production corporation’s eligibility certificate. If an eligibility certificate is denied or revoked, any film and television tax credits received for the animation production must be repaid.