BC Gov News
Increased tax incentives for British Columbia’s motion picture sector will help attract more major productions and ensure that good-paying film and TV industry jobs stay in B.C.
“Our province is home to one of the busiest film and TV production centres in North America,” said Premier David Eby. “But film production in B.C. has taken a big hit over the last few years, responding to significant impacts from the pandemic, multiple labour disruptions and changes to industry practices. We’re boosting tax incentives – and our competitive advantage – to ensure that our province remains a destination of choice for filmmakers in Canada and around the world, employing skilled British Columbian crews.”
Budget 2025 will include increases to the Film Incentive BC (FIBC) tax credit, which supports Canadian-content productions, and the production services tax credit (PSTC) that provides a tax incentive for international projects made in B.C.
With the approval of budget legislation, the FIBC will increase from 35% to 36%, and the PSTC will increase from 28% to 36% for productions with principal photography starting Jan. 1, 2025. To further give major productions incentives in the province, projects with B.C. production costs of greater than $200 million will receive a 2% bonus.
“We know that incentives and investments in B.C.’s film sector are generating significant returns for British Columbians, local film crews, and B.C. businesses,” said Brenda Bailey, Minister of Finance. “Today’s announcement solidifies B.C.’s competitive advantage as one of the world’s top filming destinations and our commitment to strengthening our economy all across B.C.”
Based on feedback from animated productions, the Province also intends to restore regional and distant location tax credits for companies with a bricks-and-mortar presence outside of Metro Vancouver, the Fraser Valley and Whistler/Squamish.
“B.C. is a motion-picture powerhouse with spectacular locations, world-class crews, studios and outstanding creative talent that major productions rely on,” said Spencer Chandra Herbert, Minister of Tourism, Arts, Culture and Sport. “I was recently in Los Angeles and heard directly from studio executives about the significant production increases in B.C. that would flow from changes like these. These changes will help us land more top-tier projects, fuel economic and job growth, and showcase everything we love about B.C. to the world.”
In 2023, strike action halted the industry for more than six months and a decrease in global productions have affected the province’s film industry. According to Creative BC, more than 37,000 jobs in the province were supported by the motion-picture industry in 2022, compared to 26,000 in 2023.
Other jurisdictions are increasing film incentives to attract productions in an already competitive market. Increasing the FIBC and PTSC is intended to support continued growth in B.C.’s motion-picture industry and meet market demands.
In B.C., foreign productions make up more than 80% of total production spending on average. Maintaining strong international relationships is critical for the film and TV industry to continue to thrive.
In November, Bailey, Chandra Herbert and Nina Krieger, parliamentary secretary for arts and film, went to Los Angeles to meet with studio decision-makers. The delegation discussed ways to enhance the Province’s competitiveness and highlight the benefits of filming in B.C. and understand the needs of the industry.
Quotes:
Gemma Martini, Screen BC chair and CEO, Martini Film Studios –
“This is an industry where B.C. excels and is known as a progressive and sophisticated leader on the world stage. With recent upheaval and sharp competition across the global industry, today our government is signalling a strong and strategic action plan to ensure that our collective investments continue to deliver thousands of quality, well-paying jobs, generous dividends across B.C.’s supply chain and ancillary businesses, and incremental cross-sector growth.”
Crystal Braunwarth, business representative, IATSE Local 891 –
“This announcement is yet another powerful demonstration of our government’s unwavering support, standing united with motion picture workers, labour leaders and the entire sector. As we look ahead to 2025, we can take comfort in knowing that our premier and his ministers are fully aware of the challenges we face and are dedicated to taking meaningful action for our industry and what it brings to the cultural fabric and economic success of our province.”
Quick Facts:
- According to Creative BC, the film industry generated $2.7 billion in GDP in 2022 – roughly 1% of B.C.’s GDP – and $2 billion in 2023, a year impacted by strike action and a decrease in global production.
- In 2023-24, B.C. provided $909 million in film and television tax credits.
- Both the FIBC and PSTC are based on B.C. labour expenditures and can be stacked with other credits that support productions to use locations outside the Lower Mainland, hire B.C.-based scriptwriters, use specialized digital animation and related labour or provide approved training.
Learn More:
Read about the recent delegation visit to L.A., visit: https://news.gov.bc.ca/releases/2024TACS0047-001594
Learn about the production services tax credit: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/production-services
Learn about the Film Incentive BC: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/film-tv