Legislation introduced in British Columbia would reduce the provincial film tax credit rates. If enacted as proposed, the basic production services tax credit rate would be reduced to 28% (from 33%) and the digital animation or visual effects tax credit would be reduced to 16% (from 17.5%), when principal photography begins on or after 1 October 2016.
The proposed measures include a transitional period to recognize investments that have already been planned in the province. For example, the amendments would allow all episodes in one season of a television series to continue at the current tax credit rates if principal photography for the first episode of the series begins before 1 October 2016. The B.C. film credit reduction is included in Bill 25, which received first reading on 2 May 2016 (British Columbia has a majority government). Bill 25 contains no other income tax measures.
Read a May 2016 report [PDF 48 KB] prepared by the KPMG member firm in Canada: British Columbia Moves to Reduce Film Tax Credits
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.