Saving the B.C. film industry

There seems to be a lot of controversy lately around the B.C. film industry not making it into the Christy Clark BC Jobs plan. I don’t see the correlation.

As I understand the issue, in 2009 Ontario made a competitive bid for an all-spendĀ 25% tax break vs B.C’s 33% staff only tax breaks for the motion picture industry.
I realize this is a billion dollar industry, and I have many friends personally who have felt the impact. Is the argument we offer more of a break than Ontario, which seems like it would only be a race to the bottom?
Can anyone enlighten me as to what the proposed solution being offered is?

2 responses to this post.

  1. The proposed solution, as far as I know, is simply to MATCH others.

    Most specifically, the Quebec credit.

    A tax credit on LABOUR ONLY is a joke. Here’s Quebec’s, which is 25% against ALL EXPENSES.

    My post-production industry basically doesn’t exist in BC’s tax credit world.

    http://www.qftc.ca/tax-incentives/information/

    Reply

  2. Posted by Jack Harkniss on January 17, 2013 at 6:50 pm

    Just to be clear about what a tax incentive is, this is how the tax Rebate system works in our province. When a Production comes to town and spends money on Labour, the provincial government Rebates 33% of that amount to the company. In addition, the Federal Government Rebates another 16% on labour after you take off the British Columbia Rebate. In other words, $100 spent on labour … -$33 rebated from BC (33%) —- $67 no rebate – $10.72 rebated from the Federal government (16%) = $56.28 total cost to Production. Other than additional amounts offered for visual FX (17.% Rebate) and for filming a distant Location, our Province does not offer anything else.

    The goverment does not give away tax collected money, they simply collect less on NEW money that is attracted by the incentive. Meanwhile, we pay tax, buy products and services and invest in our Province and country.

    Where is the downside?

    Reply

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