British Columbia film incentive cut due to inflated costs
The Basic Film Incentive Tax Credit offered within the Canadian province of British Columbia will be cut from 33% to 28% over growing concerns regarding inflated Government spending. While proving to be a popular system amongst filmmakers, the maintenance of B.C.’s incentive programme cost the Government a considerable amount of money, with last year’s annual cost of USD313 million increasing to USD491 million in 2016.
Finance Minister Mike de Jong explains: "the feedback we have received from the industry itself is that this is a reasonable approach... we’ve settled on these numbers after working with the industry and believe they represent, for the short and medium term at least, a reasonable balance.”
Mr. Jong’s comments appear amidst concerns that cuts to the incentive programme would cause filmmakers to look elsewhere and result in a loss of local jobs.
The head of Vancouver Studios, Peter Mitchell adds: “are we super happy about a rollback on the tax credits? No. But as far as how much it goes toward meeting the twin goals of reducing the government expenditure and not having a serious impact on jobs, I think it’s about the best we could come to.”
With the new rate of 28% still being comparatively high to other incentive programmes, it is unlikely that this cut with have a drastic effect on B.C.’s film industry. It does however provide an opportunity for a different state or province to take the lead on incentives.
Global Filming Incentive - Canada (see more…)
- Newfoundland & Labrador: Tax Credit
- NWT Travel Rebate
- NWT Expenditure Rebate
- Cost-Of-Production Tax Credit
- Cost-Of-Salaries Tax Credit
- Canada: Film or Video Production Tax Credit (CPTC)
- Canada: The Film or Video Production Services Tax Credit (PSTC)
- The Manitoba Film and Video Production Tax Credit: Frequent Filming Bonus
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