Government Proposes to Maintain Film Tax Credits
Jan 20, 2006
VICTORIA – The government intends to
maintain film production tax credits at their enhanced rates until
2008, Finance Minister Carole Taylor announced today.
“Our government raised both its domestic and foreign film tax credit rates last year,” said Taylor. “Those higher rates were set to expire after March 31, 2006. Today, we’re announcing that we will introduce legislation to maintain those rates though 2008.”
The Production Services Tax Credit would remain at 18 per cent and the basic Film Incentive BC tax credit would remain at 30 per cent.
The government examined several factors in assessing whether to maintain the tax credits at the higher rate, including the InterVISTAS study commissioned in March 2005. That study noted the sensitivity of production location decisions to labour and other location costs.
“We appreciate BC’s film sector faces some stern challenges over the next year, including intense competition from other filmmaking locations,” said Taylor. “Extending the credits will help keep BC a competitive location for film production and allow the BC film industry to complete its internal work to increase efficiency. Ultimately, the industry needs to ensure its cost structure is in line with our key competitors.”
During 2007, the Province will undertake a further review, with input from the public and industry, on the progress made by industry to improve its competitiveness, whether to continue the credits beyond 2008 and, if so, at what rates.
Media contact:
Robert Pauliszyn
Public Affairs Bureau
Ministry of Finance
250.356.2821
For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca
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“Our government raised both its domestic and foreign film tax credit rates last year,” said Taylor. “Those higher rates were set to expire after March 31, 2006. Today, we’re announcing that we will introduce legislation to maintain those rates though 2008.”
The Production Services Tax Credit would remain at 18 per cent and the basic Film Incentive BC tax credit would remain at 30 per cent.
The government examined several factors in assessing whether to maintain the tax credits at the higher rate, including the InterVISTAS study commissioned in March 2005. That study noted the sensitivity of production location decisions to labour and other location costs.
“We appreciate BC’s film sector faces some stern challenges over the next year, including intense competition from other filmmaking locations,” said Taylor. “Extending the credits will help keep BC a competitive location for film production and allow the BC film industry to complete its internal work to increase efficiency. Ultimately, the industry needs to ensure its cost structure is in line with our key competitors.”
During 2007, the Province will undertake a further review, with input from the public and industry, on the progress made by industry to improve its competitiveness, whether to continue the credits beyond 2008 and, if so, at what rates.
Media contact:
Robert Pauliszyn
Public Affairs Bureau
Ministry of Finance
250.356.2821
For more information on government services or to subscribe to the Province’s news feeds using RSS, visit the Province’s website at www.gov.bc.ca
Download
