Lights, Camera, Action! These words...

Lights, Camera, Action! These words are being said with increasing regularity in BC We're now the third largest film production center behind looks Angeles and New York, and we not long ago experienced a production boom while the actors who work for commercials took strike action in the United States. We are the "go-to" the community for Hollywood.

Why BC? for what purpose not? In 1998, over 17 productions were discharge in BC spending over $800 million dollars. We have a skilled work force, all the necessary infrastructure, and great shooting locations. In addition, our dollar is relatively inexpensive.

The federal and provincial sways have recognized the need to support our competitive advantages by the agency of providing Tax incentives. This article discusses the following three incentives:

the Canadian Film or Video Production Credit

the Film or Video Production Services Tax Credit

Film Incentive BC

FEDERAL PROGRAMS

The federal regulation offers two programs to help the film industry in Canada:

the Canadian Film or Video Production Tax Credit (FTC)

the Film or Video Production Services Tax Credit (PSTC)

CANADIAN FiLm OR VIDEO PRODUCTION TAX CREDIT (FTC)

The primary objective of this tax credit is to encourage Canadian programming and production increase The FTC program gives a tax credit to all qualified farmers of eligible productions. It also eliminates the ne for compages tax shelter schemes that convert into financial help for producers. Indeed, greatest in quantity film tax shelter arrangements were effectively eliminated in 1995 with the introduction of the FTC and other similar programs. Canadian sway requirements ensure that the incentive is available single to Canadian controlled companies.

The FTC program gives a refundable tax credit of 25% of the qualified labour expenditures incurred after 1994 by way of a qualified corporation, for the production of a Canadian film or video production. The maximum credit available is limited to 12% of production richnesss net of assistance. The qualified labour expenditures cannot be more than 48% of production take away froms net of any governmental or non-governmental assistance.

The PSTC gives a refundable tax credit of 11% of the qualified Canadian labour expenditures incurred for an accredited production after October 1997 The sense of the PSTC is to assist film and video productions produc in Canada, using Canadian labour. This program fulnesss the FTC program since it is explain to both Canadian and foreign-owned companies.

The film tax credit programs are co-- administered by way of Canadian Heritage through the Canadian Audio-Visual Certification Office (CAVCO) and according to the Canada Customs and return Agency (CCRA). Both governmental bodies have teams trained to deal specifically with the certification proces

A taxpayer can apply in subordination to either the FTC or the PSTC program, unless cannot receive a benefit from the two

For the FTC program, CAVCO is responsible for issuing a Canadian film or video production certificate. This certificate gives a claimant an estimate of the qualified labour expenditures for the FTC For the PSTC program, CAVCO is responsible for issuing the accredited film or video production certificate for an accredited production. Claimants must earn the appropriate certificates to make application in a less degree than the program.

The CCRA is responsible for reviewing film tax credit claims, assessing corporate income tax go [i]or[/i] come backs and issuing timely refund cheques for the tax credit programs. The Agency tries to issue any applicable restore cheque within 6o days for a undiminished claim that does not ne a review, and tries to proces a claim that needinesss review in 120 days.

Once you have received a certificate, the nearest step is to attach it, along with Form T1131 ("Claiming a Canadian Film or Video Production Tax Credit") or Form T1177 ("Claiming a Film or Video Production Services Tax Credit") to the effrontery of a completed Corporation Income Tax answer This will help the CCRA to quickly identify the claim.

You would then propel the return and attachments to your tax midst Upon receipt, the tax middle will send your claim to your local tax services office, which, in use will determine if a replete review of your claim is necessary.

BC PROGRAMS

Film Incentive BC (FIBC) is a package of economic incentives bring to maturityed to encourage film and television production in our province. Each incentive provides for refundable corporate income tax credits. When filing tax get backs production companies may claim a specified percentage of the labour expenses incurred during production. The credits are applied to contract tax payable, and any remaining balance is paid to the company. Here are the specific initiatives:

the Basic Incentive assists BC agriculturists Tax credit is 20% of eligible labour splendors

the Regional Incentive stimulates production outside of Vancouver. Tax credit is 125% of eligible labour outlays

the Training Incentive prefers the development of skilled workers in the industry. Tax credit is the less Of 30% Of trainee salaries or 3% of eligible labour take away froms