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VICTORIA – The government intends to maintain film
production tax credits at their enhanced rates until 2008, Finance Minister
Carole Taylor announced today.
“Our government raised both its domestic and foreign film tax credit
rates last year,” said Taylor. “Those higher rates were set to expire after
March 31, 2006. Today, we’re announcing that we will introduce legislation to
maintain those rates through 2008.”
The Production Services Tax Credit would remain at 18 per cent and the
basic Film Incentive B.C. tax credit would remain at 30 per cent.
The government
examined several factors in assessing whether to maintain the tax credits at
the higher rate, including the InterVISTAS study commissioned in March 2005.
That study noted the sensitivity of production location decisions to labour and
other location costs.
“We appreciate
B.C.’s film sector faces some stern challenges over the next year, including
intense competition from other filmmaking locations,” said Taylor. “Extending
the credits will help keep B.C. a competitive location for film production and
allow the B.C. film industry to complete its internal work to increase
efficiency. Ultimately, the industry needs to ensure its cost structure is in
line with our key competitors.”
During 2007, the Province will undertake a further review, with input
from the public and industry, on the progress made by industry to improve its
competitiveness, whether to continue the credits beyond 2008 and, if so, at
what rates.
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contact: |
Public Affairs Bureau Ministry of Finance 250 356-2821 |
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