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Film tax credit cut in Saskatchewan budget
Thursday March 22nd 2012REGINA – Saskatchewan’s government is cutting the Film Employment Tax Credit as part of its new budget, which was released Wednesday.
As of April 1, the government will no longer be accepting applications for the program, though it will honour productions already registered and issue the relevant tax credits, according to the Ministry of Tourism, Parks, Culture and Sport.
The credit – which, according to its website, is “one of the most comprehensive and competitive tax-incentive programs available in the world” – has cost $100 million since its introduction in 1998, a news release stated.
Eliminating the credit will save up to $3 million this year and $8 million annually once it is fully phased out by the end of 2014. In the release, Minister Bill Hutchinson says the cut is part of the government’s efforts to “ensure provincial finances remain sustainable.”
The Film Employment Tax Credit was introduced to encourage development of the province’s film industry. The FETC is a refundable corporation income tax credit equal to 45 per cent of eligible labour costs.
Those are limited to a maximum of 50 per cent of a film production’s total eligible budget. There are also bonuses for rural productions and using Saskatchewan labour in key positions.
Budget documents say the government decided to “wind down” the credit due to the current level of investment, an overall decline in industry activity and the need for more subsidization to stay competitive, which has been indicated by industry representatives.
Source: Vancouver Sun
Front Page, Industry News
Film tax credit cut in Saskatchewan budget
Thursday March 22nd 2012REGINA – Saskatchewan’s government is cutting the Film Employment Tax Credit as part of its new budget, which was released Wednesday.
As of April 1, the government will no longer be accepting applications for the program, though it will honour productions already registered and issue the relevant tax credits, according to the Ministry of Tourism, Parks, Culture and Sport.
The credit – which, according to its website, is “one of the most comprehensive and competitive tax-incentive programs available in the world” – has cost $100 million since its introduction in 1998, a news release stated.
Eliminating the credit will save up to $3 million this year and $8 million annually once it is fully phased out by the end of 2014. In the release, Minister Bill Hutchinson says the cut is part of the government’s efforts to “ensure provincial finances remain sustainable.”
The Film Employment Tax Credit was introduced to encourage development of the province’s film industry. The FETC is a refundable corporation income tax credit equal to 45 per cent of eligible labour costs.
Those are limited to a maximum of 50 per cent of a film production’s total eligible budget. There are also bonuses for rural productions and using Saskatchewan labour in key positions.
Budget documents say the government decided to “wind down” the credit due to the current level of investment, an overall decline in industry activity and the need for more subsidization to stay competitive, which has been indicated by industry representatives.
Source: Vancouver Sun
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Front Page, Industry News
Film tax credit cut in Saskatchewan budget
Thursday March 22nd 2012REGINA – Saskatchewan’s government is cutting the Film Employment Tax Credit as part of its new budget, which was released Wednesday.
As of April 1, the government will no longer be accepting applications for the program, though it will honour productions already registered and issue the relevant tax credits, according to the Ministry of Tourism, Parks, Culture and Sport.
The credit – which, according to its website, is “one of the most comprehensive and competitive tax-incentive programs available in the world” – has cost $100 million since its introduction in 1998, a news release stated.
Eliminating the credit will save up to $3 million this year and $8 million annually once it is fully phased out by the end of 2014. In the release, Minister Bill Hutchinson says the cut is part of the government’s efforts to “ensure provincial finances remain sustainable.”
The Film Employment Tax Credit was introduced to encourage development of the province’s film industry. The FETC is a refundable corporation income tax credit equal to 45 per cent of eligible labour costs.
Those are limited to a maximum of 50 per cent of a film production’s total eligible budget. There are also bonuses for rural productions and using Saskatchewan labour in key positions.
Budget documents say the government decided to “wind down” the credit due to the current level of investment, an overall decline in industry activity and the need for more subsidization to stay competitive, which has been indicated by industry representatives.
Source: Vancouver Sun
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