British Columbia film and television tax credit

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:

• it must be a Canadian-controlled taxable corporation
• it must have a permanent establishment in British Columbia
• its activities must primarily be carrying on a film or video production business through a permanent establishment in Canada

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 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:

• basic tax credit (35%)
• regional tax credit (12.5%)
• distant location regional tax credit (6%)
• film training tax credit (3% – see other option)
• digital animation, visual effects, and post-production (DAVE) tax credit (17.5%—16% after September 30, 2016)

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

Basic tax credit

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

For an interprovincial co-production that started principal photography before January 1, 2012, the 35% basic tax credit is multiplied by the percentage of copyright that the corporation owns.

Regional tax credit

This credit is equal to one of the following amounts:

• 12.5% of the 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 outside of the designated Vancouver area
• for a production that is intended for television broadcast as a series and that comprises a cycle of at least three episodes, where principal photography of at least three episodes is done in British Columbia outside of the designated Vancouver area, the credit is 12.5% of the qualified BC labour expenditure for the tax year for the qualified episodes done in British Columbia, where a minimum of five days and more than 50% of the total principal photography days in British Columbia are 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.

Distant location 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.

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

The credit is equal to one of the following amounts:

• 6% of the qualified BC labour expenditure for the production for the tax year, where a minimum of one day of principal photography is in a distant location
• for a production that is intended for television broadcast as a series and that comprises a cycle of at least three episodes, where principal photography of at least three episodes is done in a distant location, the credit is 6% of the qualified BC labour expenditure for the tax year for the qualified episodes determined for the regional tax credit, where a minimum of one day of principal photography is 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.

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

Film training tax credit

This credit is equal to whichever is less:

• 3% of the qualified BC labour expenditure for the production for the tax year
• 30% of the payments (net of assistance) made to the trainees in the tax year while they are participating in the approved training program on the production

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

For productions that start principal photography on or after October 1, 2016, this credit is equal to 16% of BC labour expenditure incurred, directly attributable to prescribed digital animation or visual effects activities.

If a production or the first episode in a cycle of a television series started principal photography before October 1, 2016, the previous 17.5% rate still applies to the production and to all episodes in that cycle.

Expenditures attributable to post-production activities incurred before February 29, 2015, are excluded.

Claiming the credits

File the following with your return for the year:

• the eligibility certificate (or a copy) requested from Creative BC
• if it applies, the completion certificate (or a copy), and a copy of the audited statement of production costs and notes provided to Creative BC
• a completed copy of Form T1196, British Columbia Film and Television Tax Credit, for each eligible production

If you file your return electronically, send a paper copy of the eligibility certificate requested from Creative BC or, if it applies, of the completion certificate, and a copy of the audited statement of production costs and notes provided to Creative BC, to the appropriate Film Services Unit (FSU). The location of the production corporation’s books and records usually determines which FSU will handle the review of your claim.

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.

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

Forms and publications

• Form T1196, British Columbia Film and Television Tax Credit
• Schedule 5, Tax Calculation Supplementary – Corporations

Government partners

• Bulletin CIT 009, British Columbia Film and Television Tax Credit
• Bulletin CIT 011, British Columbia Digital Animation or Visual Effects Tax Credit
• British Columbia (provincial site)

Date modified:

2017-04-20