VANCOUVER – British Columbia has proposed new tax credits for digital media and changes to provincial film tax credits in order to boost the province’s profile as a competitive production location.
Subject to approval by the legislature, the planned tax measures include:
– A new B.C. Interactive Digital Media tax credit for video game development of 17.5% of qualifying provincial 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% per cent; and
– Qualified B.C. labour expenditures cap increased to 60% from 48% of production costs.
“This is a made-in-B.C. incentive package that recognizes convergence is taking place within the film, television and the increasingly important video game and animation sectors,” said Finance Minister Colin Hansen, in the announcement. “We are responding to industry needs and recognize that film, television, animation, and visual effects companies contribute over a billion dollars annually to the B.C. economy and generate thousands of jobs.”
If approved, the film tax credit changes will be effective for productions with principal photography that begin after February 28, 2010. The B.C. Interactive Digital Media tax credit will be effective for qualifying video game development projects that begin after August 31, 2010.
B.C. is the third-largest film and television production centre in North America, after Los Angeles and New York.
