British Columbia production services tax credit

The production services tax credits are available to both domestic and foreign producers and there is no Canadian content requirement.

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

• have a permanent establishment in British Columbia during the tax year
• throughout the tax year, have primarily carried on a film or video production business or a film or video production services business

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

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

These credits apply to 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 accredited production corporation can claim these different credits:

• the basic production services tax credit (28%, increased to 36% for productions that start principal photography after December 31, 2024)
• the regional production services tax credit (6%)
• the distant location production services tax credit (6%)
• the digital animation, visual effects, and post-production (DAVE) services tax credit (16%)
• the major production tax credit (2%)

For more information about these credits, see Part 5 of the British Columbia Income Tax Act.

Basic production services tax credit

This credit is equal to 28% of the corporation's accredited qualified BC labour expenditure for the tax year. The credit is increased to 36% for productions that begin principal photography after December 31, 2024.

Regional production services tax credit

This credit is equal to 6% of the accredited qualified BC labour expenditure for the production for the tax year, where a minimum of five days and more than 50% of the total principal photography days in British Columbia are done outside of the designated Vancouver area.

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 

Animated productions that began key animation after May 31, 2024, and before January 1, 2025, are not eligible for the regional production services tax credit. The credit is reinstated for animation productions that begin key animation after December 31, 2024, if the corporation has a physical office in BC:

• outside the designated Vancouver area, and
• where BC‑based individuals spent at least 50% of their time rendering services

For animated productions that began key animation before June 1, 2024, the regional production services tax credit is 6% of the accredited qualified BC labour expenditure, prorated:

• by the accredited BC labour expenditure incurred in BC outside the designated Vancouver area
• over the total accredited BC labour expenditure for the animated production incurred in the tax year

If key animation begins after December 31, 2024, only include accredited BC labour expenditure for the tax year for BC‑based individuals who spent at least 50% of their time rendering services in a physical office described above.

Distant location production services 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 distant location production services tax credit is equal to 6% of the accredited qualified BC labour expenditure for the production for the tax year, where a minimum of one day of principal photography is done in a distant location.

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 

Animated productions that began key animation after May 31, 2024, and before January 1, 2025, are not eligible for the distant location production services tax credit. The credit is reinstated for animation productions that begin key animation after December 31, 2024, if the corporation has a physical office in BC:

• in a distant location, and
• where BC‑based individuals spent at least 50% of their time rendering services

For animated productions that began key animation before June 1, 2024, the distant location production services tax credit is 6% of the accredited qualified BC labour expenditure prorated:

• by the accredited BC labour expenditure incurred in a distant location
• over the total accredited BC labour expenditure for the animated production incurred in the tax year

If key animation begins after December 31, 2024, only include accredited BC labour expenditure for the tax year for BC‑based individuals who spent at least 50% of their time rendering services in a physical office described above.

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

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

Major production tax credit

A new major production tax credit was announced for completed productions with BC production costs greater than $200 million for a major production. The credit is equal to 2% of the production's accredited qualified BC labour expenditures and may be claimed once the production is completed. The credit is available for productions that begin principal photography after December 31, 2024.

Claiming the credit

For productions incurring their first accredited BC labour expenditure (ABCLE) on or after February 22, 2022, corporations must notify Creative BC of their intent to claim these credits within 120 days of first incurring an ABCLE for the production. Creative BC must receive this notice before issuing an accreditation certificate. You will be unable to claim ABCLE incurred before the date you filed the pre‑certification form if you miss the 120-day deadline. Late notice could result in denied or reduced claims.

For productions incurring their first ABCLE between July 1, 2020, and February 21, 2022, corporations will be allowed to claim ABCLE incurred up to 120 days before filing the pre‑certification notice, regardless of how many days after the first incurred ABCLE the pre-certification notice was filed. However, you will be unable to claim ABCLE incurred more than 120 days before filing the pre‑certification form. This may reduce the production services tax credit available to you.

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

• the accreditation certificate (or a copy) received from Creative BC
• the major production certificate (or a copy) from Creative BC, if the major production tax credit is being claimed
• Form T1197, British Columbia Production Services Tax Credit, for each accredited production

You must file these documents with the CRA no later than 18 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 672 of Schedule 5, Tax Calculation Supplementary – Corporations, enter the amount of credit you are claiming.

Forms and publications

• Form T1197, British Columbia Production Services Tax Credit
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• British Columbia (provincial site)