Saskatchewan proposes 25% non-refundable location filming tax credit
Saskatchewan in central Canada has proposed a new location filming tax credit. Its 45% refundable programme was cancelled in March as a cost-saving exercise, but the provincial Government has said that a non-refundable 25% tax credit will be launched in July 2012.
The cancellation of the 45% scheme in Saskatchewan prompted uproar from producers and stars alike. Supporters claim the programme produced some CAD600 million from an investment of CAD100 million, although Government figures also suggest that production levels in the province have fallen 60% over the past five years.
It’s the non-refundable element of the new programme that the industry’s finding particularly hard to stomach as it makes the subsidy less bankable.
Ron Goetz is President of the Saskatchewan Media Production Industry Association: “In our proposal to the Government we recommended that the Government consider a refundable tax credit on all production expenses, including labour costs.
This new plan is based upon a non-refundable tax credit programme, which has not been successful in other jurisdictions.
Ron Goetz, Saskatchewan Media Production Industry Association
“This new plan is based upon a non-refundable tax credit programme, which has not been successful in other jurisdictions. In fact, Saskatchewan’s programme would be the only one in Canada that is not based on refundable tax credits.”
Bill Hutchinson, the Minister for Tourism, Parks, Culture and Sport in Saskatchewan, has defended the new programme, adding that it’s actually worth up to 43% with bonuses and will unite the province’s creative industries.
Not Logged in
You must be logged in to post a comment
There are no comments