Canadian Film Tax Incentives – Still In The Game
Arts & Entertainment → Television / Movies
- Author Scatena & Rosner Films
- Published January 27, 2017
- Word count 561
As mentioned in The Importance of Film Tax Incentives Today, tax incentives are a key component to independent film budgets. This is a fact for all filmmakers. For those of us in the USA, we have the ability to rely on several state governments to secure portions of our films’ budgets. But we don’t have a monopoly on the idea, and our friendly neighbors above us bring competitive incentives. With nearly 100 productions currently shooting [at the time I write this] throughout Toronto and Vancouver, more and more production companies are looking north for their locations and services.
Canada offers one of the best tax incentives in North America by not only providing a great tax percentage, but factoring in the currency exchange rate allows both large and small productions to shoot for a reasonable price. Canada’s dollar usually steeps below $0.80 USD, allowing the hard earned American dollar to actually save you money in Canada. Most production companies utilize the weak Canadian dollar to increase the amount they can spend on their shoots. And depending on the province of choice (usually Ontario, B.C., or Quebec) and project requirements, you could qualify up to 40% tax incentives to cover your budget. Between Vancouver and Toronto, they have been known to be stand-ins for iconic cities like New York and Chicago. Although used for location services, Toronto, Montreal, and Vancouver also have professional sound stages, VFX studios, and other post-production houses you could take advantage of. The best part: Canada will give you an extra tax percentage for each and every one of those items!
In late 2015 to early 2016, British Columbia noticed that it was receiving an exponential amount of business from out-of-state productions that they couldn’t handle, causing a fluctuation in the provinces annual budget. In B.C., the Finance Minister publicly stated that they are "not prepared to see payouts grow at the rate they have. We have a balanced budget, but we have other priority areas that we feel we need to address on behalf of British Columbians." With these statements, the Minister was contemplating placing a cap on B.C.’s tax incentive. While this does not seem like a major problem on its face, this is concerning because much of the regions success in attracting large quantities of film productions has been predicated on the no-cap policy. Further, one province adopting such a startling policy shift could have been enough to encourage other provinces and states to follow suit; such a shift could easily cripple the northern filmmaker community.
Since the discussions were released back in February, an industry-government group of representatives from film and television reconstructed the tax credit to benefit both the film industry and the people of the province. Starting Oct 1, 2016, "the basic production services tax credit rate will be set at 28%, down from 33%, and the digital animation or visual effects (DAVE) tax credit rate will be set at 16%, down from 17.5%."– (news.gov.bc.ca). In other words, despite a slight decrease in credit rates, the province will continue to attract the filmmaking industry by standing by their no-cap policy. And of course, the low Canadian dollar is still an attractive added benefit that state-side territories cannot offer. At least for the time being, the no-cap policy paired with a favorable exchange rate should keep Canada at the top of you location list.
Rate article
Article comments
There are no posted comments.
Related articles
- Barbra Streisand: From Brooklyn to Hollywood Royalty.
- The Sting: A Cinematic Con of Masterful Deception.
- Charlie Chaplin: The Silent Genius Who Spoke to the World.
- Avatar: The Cinematic Revolution That Redefined Hollywood.
- Michael Mann: The Architect of Grit and Grandeur.
- Tyrone Power: The Dashing Leading Man Who Conquered Hollywood.
- The Relentless Passion of Al Pacino: From Stage Struggles to Cinematic Greatness.
- The Cutter
- Rocky: The Underdog Story That Redefined Cinema.
- From Mr Universe to Box Office Titan: The Hollywood Rise of Arnold Schwarzenegger.
- The Shining: A Descent into Madness and Cinematic Perfection.
- Cleopatra (1963): The Epic That Nearly Bankrupted Hollywood.
- Robert Taylor: From Small-Town Dreamer to Hollywood Icon.
- Elizabeth Taylor: A Star is Forged in Hollywood’s Golden Age.
- Brad Pitt and Angelina Jolie: A High-Profile Split That Shook Hollywood.
- Robert Redford: The Golden Boy Who Redefined Hollywood.
- Dr. Zhivago: A Cinematic Masterpiece of Love and Revolution.
- John Travolta: From Disco King to Hollywood Comeback King.
- Quentin Tarantino: The Auteur Who Redefined Cinema.
- Metamorphosis of the Soul: An In-Depth Exploration of ‘A Different Man.’
- Henry Fonda: The Reluctant Star Who Defined an Era.
- Tony Curtis: The Bronx Boy Who Became Hollywood Royalty.
- James Dean: The Rebel with a Hidden Life.
- Roman Polanski: The Genius and the Fugitive.
- A World Without Mercy: The Enduring Power of Bicycle Thieves
- Elisabeth Sparkle’s Descent: A Deep Dive into ‘The Substance.’
- Joaquin Phoenix: The Enigmatic Chameleon of Cinema.
- Richard Chamberlain: The Heartthrob Who Hid His Truth.
- La Grande Bouffe: A Cinematic Orgy of Excess and Self-Destruction.
- The Enigmatic Flame: Val Kilmer’s Luminous Journey Through Hollywood and Beyond.