The low Canadian dollar attracts many foreign investors and businesses to Canada, primarily from South of our border; the U.S.A. With a current exchange rate of $1.40CAD to $1USD, film production has become more lucrative in Canada with production companies in the US having the ability to keep their costs low. Not only the dollar exchange impact, most provinces provide generous incentive tax credits to promote film production in the Province.
As the Film industry accounts for
approximately $5.81 billion in annual revenues in Canada, there are many
incentives that the federal and provincial governments make available to
production companies in an attempt to create jobs and employment. Here is a summary that outlines some of these tax credits and incentives for Ontario and British Columbia.
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FEDERAL FILM & VIDEO INCENTIVE |
|
|
Canadian Film
or Video Production Tax Credit |
Based on 25%
of qualified labour (capped at 15% of total cost of production) |
|
Canadian Film
or Video Production Services Tax Credit |
Based on 16%
of qualified Canadian labour (there is no maximum) |
|
|
|
|
BRITISH COLUMBIA FILM & VIDEO INCENTIVE |
|
|
Film
Incentive BC Tax Credit |
Based on 35%
of qualified BC labour (capped at 21% of total cost of production) |
|
PLUS |
|
|
(a) Regional Credit |
Based on
12.5% of the prorated qualified BC labour if more than 50% of the BC
principal photography days are outside the Vancouver area (capped at 7.5% of
total production) |
|
(b) Distant Location
Credit |
Based on 6%
of prorated qualified for principal photography in a prescribed area if
eligible for the regional credit. |
|
(c) Training Credit |
Based on 3%
of qualified BC labour (capped at 30% of trainees' salaries) |
|
British
Columbia Production Services Tax Credit |
33% of
qualified BC labour expenditure (not capped) |
|
PLUS |
|
|
(a) Regional Credit |
Based on 6%
of the prorated qualified BC labour if more than 50% of the BC principal
photography days are outside the Vancouver area |
|
(b) Distant Location
Credit |
Based on 6%
of prorated qualified for principal photography in a prescribed area if
eligible for the regional credit. |
|
|
|
|
ONTARIO FILM & VIDEO INCENTIVE |
|
|
Ontario Film and
Television Tax Credit |
Based on 35%
of qualified Ontario labour (not capped) |
|
PLUS |
|
|
(a) Regional Credit |
Based on 10%
of qualified Ontario labour if at least 85% of principal photography shot
outside of GTA |
|
(b) Enhancement for
first-time producers |
Based on 5%
of the first $240,000 of qualified Ontario labour |