Canada: Reduced film tax credits in British Columbia

Canada: Reduced film tax credits in British Columbia

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.

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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 

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