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 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%)
• 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%)

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.

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, 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

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 

For animated productions, 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.

Claiming the credit

File the following with your return for the year:

• the accreditation certificate (or a copy) received from Creative BC. For productions incurring their first accredited BC labour expenditure (ABCLE)
  •  on or after February 22, 2022: corporations intending to claim these credits must notify Creative BC of their intent within 120 days of first incurring an ABCLE for the production. Creative BC must receive this notice before issuing an accreditation certificate. Late notice could result in denied or reduced claims.
  • 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. If a corporation has already been denied a portion of its production services tax credit claim by the CRA due to the late filing of a pre-certification notice, the corporation can request an adjustment to its T2 return.

• Form T1197, British Columbia Production Services Tax Credit, for each accredited production

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 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.

Forms and publications

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

Government partners

• British Columbia (provincial site)