As a long-time resident of British Columbia, I can’t help but feel a sense of excitement and relief at the recent boost to the foreign film tax credit for Hollywood producers who shoot locally. As someone who has witnessed the ebb and flow of the local film industry over the years, I’ve seen firsthand the impact that industry shutdowns, strikes, and changes in practices can have on our province.
As a movie enthusiast, I’m thrilled to share that I’ve just received an early holiday gift from British Columbia – a significant increase in the foreign film tax credit for major Hollywood studios and streaming platforms who choose to film there! This is fantastic news for film lovers like me!
Starting January 1, 2025, the production services tax credit for foreign projects filmed domestically will increase from 28% to 36%. Furthermore, significant productions (tentpole projects) with local spending exceeding $200 million will qualify for an extra 2% bonus.
In response to the effects of industry shutdowns during the pandemic and last year’s strikes in Los Angeles on local film and TV production, British Columbia (BC), a region heavily reliant on Hollywood production, is implementing a boost to its film tax credit. BC Premier David Eby stated that the province hosts one of the most active film and TV production hubs in North America, with many productions now choosing to shoot outside California, including Canada, as an alternative location.
However, film production in B.C. has faced significant challenges over the past few years due to factors such as the pandemic, labor disputes, and shifts within the industry. To maintain our province’s appeal for both Canadian and international filmmakers, we are increasing tax incentives and thereby enhancing our competitive edge. This move will ensure that we continue to utilize the talents of skilled British Columbian crews.
Currently, the westernmost Canadian province is playing host to filming for the latest seasons of The CW’s “Wild Cards”, CBS’ “Tracker” and “Fire Country” series, as well as “Resident Alien” on SyFy.
British Columbia increases its film tax credit limit after Governor Gavin Newsom of California raises the production tax credit ceiling from $330 million to $750 million annually in October 2024. The goal is to counteract productions choosing to film elsewhere due to more attractive tax incentives offered by other states and countries.
Other regions and nations are also enhancing their tax breaks for production. In June, Governor J.B. Pritzker of Illinois approved a bill that enables game shows, talk shows, contests, and other reality TV formats, among others, to claim tax credits when filming within the state. This move was preceded by Japan announcing an incentive program that refunds up to half of eligible expenses incurred within the country.
In the previous year, Canada, which is the largest filming location for Los Angeles producers in Canada, experienced a decline of 36.5% in the total value of foreign production (both on-location and service) to approximately $1.68 billion, as per the latest survey conducted by the Canadian Media Producers Association, an organization that represents independent local producers.
Approximately 80% of film production spending in British Columbia comes from foreign, primarily Hollywood productions. This is due to the fact that producers based in Los Angeles are drawn by the significant currency savings offered in the province, as the Canadian dollar’s value continues to decrease relative to the US dollar.
Last year, the sector experienced significant setbacks due to prolonged Hollywood strikes, which essentially halted operations for more than half a year, and ongoing declines in international film production as the industry faces a contraction.
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2024-12-19 20:25