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B.C. urges Ontario to harmonize film tax credits

Hoping to end The Hunger Games-like competition among provinces seeking movie productions, British Columbia is pleading with Ontario to harmonize its film tax credits to save both provinces a bundle.

“Calling these things ‘tax credits’ is a bit misleading … they are subsidized incentives,” B.C. Finance Minister Mike de Jong told the Star on Tuesday.

“They’re playing the taxpayers off one against the other,” de Jong said after a meeting with Ontario Finance Minister Charles Sousa in Toronto.

“The first step is to stop being whipsawed for one another because that’s just crazy.”

It’s expected to cost B.C. around $330 million this year to help bankroll film production in the province; the tab for Ontario’s industry could ultimately be three times that when all factors are considered.

While Sousa said he had “a great session” with de Jong and confirmed the government would likely re-examine the system, nothing radical is imminent.

“I am not at this point looking at changing our investment tax credits for the film industry,” the treasurer said at Queen’s Park.

“Ontario has become very attractive for the film industry because of the investment tax credits we’ve provided.”

Sousa is tabling his first budget as finance minister next month.

But with roughly a third of the minority Liberal government’s seats in Toronto, home to the lion’s share of Ontario film production, it would be politically imprudent to reduce tax credits.

Since being elected in 2003, the Liberals have continually enriched tax credits to match or undercut other jurisdictions, such as Quebec and numerous American states.

Source: The Toronto Star