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Nova Scotia film industry tax credit slashed by Liberal government
Thursday April 09th 2015Nova Scotia’s Liberal government presented its 2015-2016 budget on Thursday, lifting the curtain on important changes for the province’s film and television industry.
As of July 1, the Film Industry Tax Credit for productions of films and television shows will drop from 100 per cent refundable to 25 per cent refundable.
The credit is based on productions receiving a rebate of 50 to 60 per cent on their payroll and labour costs, dependent on whether the location is rural or urban.
That labour rebate continues, but how much the production will get back on an individual project will in the future depend on how much tax it pays to the province.
The Department of Finance says 99 per cent of all productions shot in Nova Scotia pay zero tax.
The change is designed to allow all productions to get a 25 per cent refund and up to 100 per cent depending on the amount of tax paid.
The province acknowledged film companies will have to restructure in order to reduce their costs as a result of this change.
The province says Nova Scotia’s Film Industry Tax Credit is the most generous in the country. It says companies receive about 35 cents for every $1 invested through the tax credit, while the government recovers about 25 cents on every $1 through taxes.
In 2013-2014, the Canadian Media Production Association said all film and TV productions in Nova Scotia generated $122 million including $39.4 in wages.
Industry members have said the government’s decision to restructure the film tax credit could destroy the industry in this province.
Productions already underway will qualify this year for 100 per cent of the tax credit; it costs the province $24 million a year. Next year, the province expects to pay out only $6 million.
In addition, the province is promising to invest in 2016 in a new Creative Economy Fund to boost film, music and publishing.
The agency that was previously responsible for the film industry will be absorbed and operated through Nova Scotia Business Inc.
Source: CBC
Front Page, Industry News
Nova Scotia film industry tax credit slashed by Liberal government
Thursday April 09th 2015Nova Scotia’s Liberal government presented its 2015-2016 budget on Thursday, lifting the curtain on important changes for the province’s film and television industry.
As of July 1, the Film Industry Tax Credit for productions of films and television shows will drop from 100 per cent refundable to 25 per cent refundable.
The credit is based on productions receiving a rebate of 50 to 60 per cent on their payroll and labour costs, dependent on whether the location is rural or urban.
That labour rebate continues, but how much the production will get back on an individual project will in the future depend on how much tax it pays to the province.
The Department of Finance says 99 per cent of all productions shot in Nova Scotia pay zero tax.
The change is designed to allow all productions to get a 25 per cent refund and up to 100 per cent depending on the amount of tax paid.
The province acknowledged film companies will have to restructure in order to reduce their costs as a result of this change.
The province says Nova Scotia’s Film Industry Tax Credit is the most generous in the country. It says companies receive about 35 cents for every $1 invested through the tax credit, while the government recovers about 25 cents on every $1 through taxes.
In 2013-2014, the Canadian Media Production Association said all film and TV productions in Nova Scotia generated $122 million including $39.4 in wages.
Industry members have said the government’s decision to restructure the film tax credit could destroy the industry in this province.
Productions already underway will qualify this year for 100 per cent of the tax credit; it costs the province $24 million a year. Next year, the province expects to pay out only $6 million.
In addition, the province is promising to invest in 2016 in a new Creative Economy Fund to boost film, music and publishing.
The agency that was previously responsible for the film industry will be absorbed and operated through Nova Scotia Business Inc.
Source: CBC
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Front Page, Industry News
Nova Scotia film industry tax credit slashed by Liberal government
Thursday April 09th 2015Nova Scotia’s Liberal government presented its 2015-2016 budget on Thursday, lifting the curtain on important changes for the province’s film and television industry.
As of July 1, the Film Industry Tax Credit for productions of films and television shows will drop from 100 per cent refundable to 25 per cent refundable.
The credit is based on productions receiving a rebate of 50 to 60 per cent on their payroll and labour costs, dependent on whether the location is rural or urban.
That labour rebate continues, but how much the production will get back on an individual project will in the future depend on how much tax it pays to the province.
The Department of Finance says 99 per cent of all productions shot in Nova Scotia pay zero tax.
The change is designed to allow all productions to get a 25 per cent refund and up to 100 per cent depending on the amount of tax paid.
The province acknowledged film companies will have to restructure in order to reduce their costs as a result of this change.
The province says Nova Scotia’s Film Industry Tax Credit is the most generous in the country. It says companies receive about 35 cents for every $1 invested through the tax credit, while the government recovers about 25 cents on every $1 through taxes.
In 2013-2014, the Canadian Media Production Association said all film and TV productions in Nova Scotia generated $122 million including $39.4 in wages.
Industry members have said the government’s decision to restructure the film tax credit could destroy the industry in this province.
Productions already underway will qualify this year for 100 per cent of the tax credit; it costs the province $24 million a year. Next year, the province expects to pay out only $6 million.
In addition, the province is promising to invest in 2016 in a new Creative Economy Fund to boost film, music and publishing.
The agency that was previously responsible for the film industry will be absorbed and operated through Nova Scotia Business Inc.
Source: CBC
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