British Columbia government introduces new tax credits for film and interactive digital media

A proposed new tax credit for digital media, combined with changes to provincial film tax credits, recognizes the convergence of these sectors and supports the continued growth, development and competitiveness of B.C.’s video game and film sectors and the related employment they provide, Finance Minister Colin Hansen announced on February 3.

BC is the third largest film and television production centre in North America, after Los Angeles and New York. In 2008, a total of 260 productions were shot in BC. This included 65 feature films, 56 television series, 102 television projects, and 37 animated series or projects.

Subject to approval by the legislature, the planned tax measures include:

• New BC Interactive Digital Media tax credit for video game development of 17.5% of qualifying BC labour costs.
• Production services tax credit on labour costs for foreign productions increased to 33% from 25%.
• Digital Animation or Visual Effects tax credit bonus increased to 17.5% from 15%.
• Qualified BC labour expenditures cap increased to 60% from 48% of production costs.

It is proposed that the film tax credit changes be effective for productions with principal photography that begin after Feb. 28, 2010. The BC Interactive Digital media tax credit will be effective for qualifying video game development projects that begin after Aug. 31, 2010.

 

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