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:

  • 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 taxes 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:

Note

If you are not eligible for, and do not claim the basic production services tax credit, you cannot claim the regional, distant location, or DAVE production services tax credits.

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.

For productions that started principal photography before October 1, 2016, the rate is 33%. If the first episode in a cycle of a television series started principal photography before October 1, 2016, the 33% rate applies to all episodes in that cycle. 

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 

For animated productions that start key animation after June 26, 2015, 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.

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

Distant location production services tax credit

Note 

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

For a production with principal photography done in the Capital Regional District, the distant location production services tax credit is only available if principal photography started after February 18, 2014.

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 

For animated productions that start key animation after June 26, 2015, 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.

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

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 for productions that start principal photography after February 28, 2015.

For productions that started principal photography before October 1, 2016, the rate is 17.5%. If the first episode in a cycle of a television series started principal photography before October 1, 2016, the 17.5% rate applies to all episodes in that cycle.

Claiming the credit

File the following with your return for the 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.

You must claim these credits no later than 36 months after the end of the tax year.

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