7/29/2019 Myths about the tax incentives

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BCs Motion Picture Production IndustryDispelling the Myths

MYTH: BCS motion picture production industry is subsidized by BC taxpayers:

FACT: British Columbias tax incentive program for motion picture

production does not provide subsidies. It provides a tax credit or rebate

on labour based production coststhat is, productions spend new money

in the province and subsequently (12-30 months later) claim a rebate on

the labour costs; no production dollars spent, no credit received.

MYTH: British Columbias motion picture industry is a special interest groupreceiving preferential support from the public purse:

FACT: The tax incentive program that encourages production in British

Columbia is a common economic development tool used across a range of

BC business sectors (i.e. in BC, logging, mining, book publishing, small

business); this mechanism is widely used around the world.

Tax incentives specifically designed for motion picture production were

pioneered in Canada and were so effective at industry building that the

model has been widely emulated across the US and Europe.

MYTH: British Columbias motion picture industry is largely a foreignenterprise with limited benefits for British Columbians and BC owned

production companies:

FACT: Robust foreign motion picture production in British Columbia bringson average $1 billion in new money to the BC economy and employs

25,000+ tax paying BC residents.

In addition, a healthy infusion of foreign production dollars helps to

sustain a $1 billion infrastructure investment in BCwhich in turn enables

BC owned production to develop by taking advantage of the talent,

infrastructure and supply chain that is widely supported by the former.