British Columbia film and television tax credit

Important notice

Changes to the British Columbia film and television tax credit regarding animation productions have been announced. See what's new for British Columbia corporations.

The film and television tax credits are for domestic productions with qualifying levels of Canadian content.

To claim these credits, an eligible production corporation must meet the following criteria:

The film and television tax credits cannot be claimed if the British Columbia production services tax credit is claimed for that production.

These credits are fully refundable but must first be applied against total taxes payable.

These credits apply to BC labour expenditures. For determining BC labour expenditures, a BC-based individual is a person who is resident in the province on December 31 of the year preceding the end of the tax year for which the tax credit is claimed.

Credits

An eligible production corporation can claim these different credits:

Note

If you are not eligible for, or do not claim the basic tax credit, you cannot claim the scriptwriting, regional, distant location, film training, or the DAVE tax credits.

Basic tax credit

This credit is equal to 35% of the qualified BC labour expenditure for the tax year for the production.

Scriptwriting tax credit

This credit is equal to 35% of eligible scriptwriting expenditures directly attributable to developing script material for a production. This includes salary, wages, and other remuneration and reimbursements paid to scriptwriters who are BC-based individuals. The cost of buying a published or finished literary work, screenplay, script or script material is not eligible.

The expenses have to be incurred:

These amounts have to be paid no later than 60 days after the end of the tax year in which principal photography started.

Regional tax credit

This credit is equal to one of the following amounts:

The credit is prorated for the number of days of principal photography done in British Columbia outside the designated Vancouver area over the total number of days of principal photography done in British Columbia.

Animated productions

For animated productions, the regional tax credit is 12.5% of the qualified BC labour expenditure prorated by the BC labour expenditure incurred in BC outside of the designated Vancouver area over the total BC labour expenditure for the animated production incurred in the tax year.

There is no minimum number or percentage of principal photography days required, and there is no proration based on principal photography days.

Distant location regional tax credit

Note 

The distant location regional tax credit can only be claimed if the corporation is eligible for, and claiming the regional tax credit.

This credit is available when principal photography is done in British Columbia in a distant location.

The distant location is that part of British Columbia that is not included within the area that extends from the designated Vancouver area north, up to and including Whistler, and east to include Hope.

The credit is equal to one of the following amounts:

The credit is prorated for the number of days of principal photography done in a distant location, over the total number of days of principal photography done in British Columbia.

Animated productions 

For animated productions, the distant location regional tax credit is 6% of the qualified BC labour expenditure prorated by the BC labour expenditure incurred in a distant location over the total BC labour expenditure for the animated production incurred in the tax year.

There is no minimum number or percentage of principal photography days required, and there is no proration based on principal photography days.

Film training tax credit

This credit is equal to whichever is less:

Digital animation, visual effects and post-production (DAVE) tax credit

This credit is equal to 16% of BC labour expenditure directly attributable to prescribed digital animation or visual effects activities, including prescribed digital post-production activities.

Claiming the credits

File the following with your return for the year by the filing deadline:

You must file these documents with the CRA no later than 18 months after the end of the tax year. For tax years starting before February 19, 2020, the filing deadline is 36 months after the end of the tax year.

If you file your return electronically, see T2 Attach-a-doc.

If you file a paper return, send the return and required attachments to your tax centre.

On line 671 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the total amount you are claiming.

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