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Front Page, Industry News
Ontario film tax credits reduced, a knock to industry’s tax stability
Thursday April 30th 2015“In Toronto, last year, we saw almost $700 million worth of domestic production. That’s something we always wished for – a robust domestic industry in this country. And now we have it.”
Those comments were made by the president of ACTRA Toronto, David Sparrow, in a recent BNN interview. ACTRA is the union representing professional performers working in Canada’s English media.
Just one day after Sparrow’s remarks, the Ontario government unveiled its 2015 budget, which included plans to reduce tax incentives for the film industry.
– Ontario Production Services Tax Credit (OPSTC) – reduced from 25% rate to 21.5%
– Ontario Computer Animation and Special Effects Tax Credit (OCASE) – reduced from 20% rate to 18%, affecting those contracted for visual effects on-set and in post-production.
– Ontario Film and Television Tax Credit (OFTTC) – Ontario will not treat government equity investment in a production in the same manner as other forms of assistance. The province estimates it will add roughly $7 million in 2016–17 for the industry.
Sparrow says ACTRA Toronto is “surprised” and “deeply concerned about the impact of these cuts on foreign productions currently shooting or planning to shoot in Ontario.”
He maintains that a critical component of Ontario’s success has been the predictable tax benefits system. “Stable tax credits, along with a healthy balance of domestic and foreign work, have helped turn Ontario into the third largest production centre in North America, creating thousands of good jobs in the process,” said Sparrow.
Peter Lyman, senior partner with Nordicity, echoed the importance of tax incentives in a BNN interview just before this latest decision: “The key to Canada, up until recently in some provinces, has been stability in the tax credit system.”
In the latest Ontario budget announcement, the government says, “there is a reduced need for government support of foreign productions” given that “a lower Canadian dollar is making Ontario an increasingly attractive location for productions and is increasing foreign investment in the film and television sector.”
Having studied the economic impact of the film and TV industry, Lyman says that while the drop in the loonie’s value is important “in large measure, it has not really affected the industry hugely” based on the most recent numbers up to early 2014.
The latest national report Nordicity put together for the industry says foreign production rose 4.9% to $86 million between 2013-14.
Meanwhile, the budget document outlines proposed rollbacks in three tax credit areas. The most notable is the Ontario Production Services Tax Credit (OPSTC), a rebate on total production spending used by film makers shooting both foreign and domestic films within Canada.
In reaction to the changes, Lyman says the move is “a knock to the perceived stability” of Canada’s production sector and the industry is “unhappy”. He notes that besides cutting rates on tax credits, eligibility restrictions are also changing.
“The changes make Ontario less attractive vis-a-vis other jurisdictions, B.C. being the biggest one.” British Columbia has modified its film tax credit regime in recent years and its film industry was outpaced by Ontario between 2010 and 2013 in attracting business. But spending was double that of Ontario even in that period, and industry analysts already expect 2015 could be one of B.C.’s best years for film and television production.
In a statement to BNN, the Ontario Media Development Corporation (OMDC), a government agency responsible for promoting investment in the film and television industry, says “We will be looking at how these changes will affect our stakeholders … but we are confident that Ontario’s toolkit of incentives and supports remains highly competitive.”
ACTRA Toronto is “currently working with our industry partners in FilmOntario [a lobby group for local industry players] to analyze the full impact of these cuts, before meeting with the Premier’s office next week in an effort to find a resolution that will protect those jobs and the industry in Ontario,” according to Sparrow. He says FilmOntario is expected to release a statement late Monday.
As the industry is trying to assess the full effects, Lyman says these changes “may be more harmful than the government thought.”
Source: BNN
Front Page, Industry News
Ontario film tax credits reduced, a knock to industry’s tax stability
Thursday April 30th 2015“In Toronto, last year, we saw almost $700 million worth of domestic production. That’s something we always wished for – a robust domestic industry in this country. And now we have it.”
Those comments were made by the president of ACTRA Toronto, David Sparrow, in a recent BNN interview. ACTRA is the union representing professional performers working in Canada’s English media.
Just one day after Sparrow’s remarks, the Ontario government unveiled its 2015 budget, which included plans to reduce tax incentives for the film industry.
– Ontario Production Services Tax Credit (OPSTC) – reduced from 25% rate to 21.5%
– Ontario Computer Animation and Special Effects Tax Credit (OCASE) – reduced from 20% rate to 18%, affecting those contracted for visual effects on-set and in post-production.
– Ontario Film and Television Tax Credit (OFTTC) – Ontario will not treat government equity investment in a production in the same manner as other forms of assistance. The province estimates it will add roughly $7 million in 2016–17 for the industry.
Sparrow says ACTRA Toronto is “surprised” and “deeply concerned about the impact of these cuts on foreign productions currently shooting or planning to shoot in Ontario.”
He maintains that a critical component of Ontario’s success has been the predictable tax benefits system. “Stable tax credits, along with a healthy balance of domestic and foreign work, have helped turn Ontario into the third largest production centre in North America, creating thousands of good jobs in the process,” said Sparrow.
Peter Lyman, senior partner with Nordicity, echoed the importance of tax incentives in a BNN interview just before this latest decision: “The key to Canada, up until recently in some provinces, has been stability in the tax credit system.”
In the latest Ontario budget announcement, the government says, “there is a reduced need for government support of foreign productions” given that “a lower Canadian dollar is making Ontario an increasingly attractive location for productions and is increasing foreign investment in the film and television sector.”
Having studied the economic impact of the film and TV industry, Lyman says that while the drop in the loonie’s value is important “in large measure, it has not really affected the industry hugely” based on the most recent numbers up to early 2014.
The latest national report Nordicity put together for the industry says foreign production rose 4.9% to $86 million between 2013-14.
Meanwhile, the budget document outlines proposed rollbacks in three tax credit areas. The most notable is the Ontario Production Services Tax Credit (OPSTC), a rebate on total production spending used by film makers shooting both foreign and domestic films within Canada.
In reaction to the changes, Lyman says the move is “a knock to the perceived stability” of Canada’s production sector and the industry is “unhappy”. He notes that besides cutting rates on tax credits, eligibility restrictions are also changing.
“The changes make Ontario less attractive vis-a-vis other jurisdictions, B.C. being the biggest one.” British Columbia has modified its film tax credit regime in recent years and its film industry was outpaced by Ontario between 2010 and 2013 in attracting business. But spending was double that of Ontario even in that period, and industry analysts already expect 2015 could be one of B.C.’s best years for film and television production.
In a statement to BNN, the Ontario Media Development Corporation (OMDC), a government agency responsible for promoting investment in the film and television industry, says “We will be looking at how these changes will affect our stakeholders … but we are confident that Ontario’s toolkit of incentives and supports remains highly competitive.”
ACTRA Toronto is “currently working with our industry partners in FilmOntario [a lobby group for local industry players] to analyze the full impact of these cuts, before meeting with the Premier’s office next week in an effort to find a resolution that will protect those jobs and the industry in Ontario,” according to Sparrow. He says FilmOntario is expected to release a statement late Monday.
As the industry is trying to assess the full effects, Lyman says these changes “may be more harmful than the government thought.”
Source: BNN
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Front Page, Industry News
Ontario film tax credits reduced, a knock to industry’s tax stability
Thursday April 30th 2015“In Toronto, last year, we saw almost $700 million worth of domestic production. That’s something we always wished for – a robust domestic industry in this country. And now we have it.”
Those comments were made by the president of ACTRA Toronto, David Sparrow, in a recent BNN interview. ACTRA is the union representing professional performers working in Canada’s English media.
Just one day after Sparrow’s remarks, the Ontario government unveiled its 2015 budget, which included plans to reduce tax incentives for the film industry.
– Ontario Production Services Tax Credit (OPSTC) – reduced from 25% rate to 21.5%
– Ontario Computer Animation and Special Effects Tax Credit (OCASE) – reduced from 20% rate to 18%, affecting those contracted for visual effects on-set and in post-production.
– Ontario Film and Television Tax Credit (OFTTC) – Ontario will not treat government equity investment in a production in the same manner as other forms of assistance. The province estimates it will add roughly $7 million in 2016–17 for the industry.
Sparrow says ACTRA Toronto is “surprised” and “deeply concerned about the impact of these cuts on foreign productions currently shooting or planning to shoot in Ontario.”
He maintains that a critical component of Ontario’s success has been the predictable tax benefits system. “Stable tax credits, along with a healthy balance of domestic and foreign work, have helped turn Ontario into the third largest production centre in North America, creating thousands of good jobs in the process,” said Sparrow.
Peter Lyman, senior partner with Nordicity, echoed the importance of tax incentives in a BNN interview just before this latest decision: “The key to Canada, up until recently in some provinces, has been stability in the tax credit system.”
In the latest Ontario budget announcement, the government says, “there is a reduced need for government support of foreign productions” given that “a lower Canadian dollar is making Ontario an increasingly attractive location for productions and is increasing foreign investment in the film and television sector.”
Having studied the economic impact of the film and TV industry, Lyman says that while the drop in the loonie’s value is important “in large measure, it has not really affected the industry hugely” based on the most recent numbers up to early 2014.
The latest national report Nordicity put together for the industry says foreign production rose 4.9% to $86 million between 2013-14.
Meanwhile, the budget document outlines proposed rollbacks in three tax credit areas. The most notable is the Ontario Production Services Tax Credit (OPSTC), a rebate on total production spending used by film makers shooting both foreign and domestic films within Canada.
In reaction to the changes, Lyman says the move is “a knock to the perceived stability” of Canada’s production sector and the industry is “unhappy”. He notes that besides cutting rates on tax credits, eligibility restrictions are also changing.
“The changes make Ontario less attractive vis-a-vis other jurisdictions, B.C. being the biggest one.” British Columbia has modified its film tax credit regime in recent years and its film industry was outpaced by Ontario between 2010 and 2013 in attracting business. But spending was double that of Ontario even in that period, and industry analysts already expect 2015 could be one of B.C.’s best years for film and television production.
In a statement to BNN, the Ontario Media Development Corporation (OMDC), a government agency responsible for promoting investment in the film and television industry, says “We will be looking at how these changes will affect our stakeholders … but we are confident that Ontario’s toolkit of incentives and supports remains highly competitive.”
ACTRA Toronto is “currently working with our industry partners in FilmOntario [a lobby group for local industry players] to analyze the full impact of these cuts, before meeting with the Premier’s office next week in an effort to find a resolution that will protect those jobs and the industry in Ontario,” according to Sparrow. He says FilmOntario is expected to release a statement late Monday.
As the industry is trying to assess the full effects, Lyman says these changes “may be more harmful than the government thought.”
Source: BNN
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