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 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:

• basic production services tax credit (33%—28% after September 30, 2016)
• regional production services tax credit (6%)
• distant location production services tax credit (6%)
• digital animation, visual effects, and post-production (DAVE) services 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 production services tax credit

For productions that start principal photography on or after October 1, 2016, this credit is equal to 28% of the corporation's accredited qualified BC labour expenditure for the tax year.

If a production or the first episode in a cycle of a television series started principal photography before October 1, 2016, the previous 33% rate still applies to the production and 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.

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.

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

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

For productions that start principal photography on or after October 1, 2016, this credit is equal to 16% of accredited qualified 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 credit

File the following with your return for the year:

• the accreditation certificate (or a copy) requested from Creative BC
• a completed Form T1197, British Columbia Production Services Tax Credit, for each accredited production

If you file your return electronically, send a paper copy of the accreditation certificate requested from 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 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.

Forms and publications

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

Government partners

• Bulletin CIT 010, British Columbia Production Services Tax Credit
• Bulletin CIT 011, British Columbia Digital Animation or Visual Effects Tax Credit
• British Columbia (provincial site)

Date modified:

2017-04-20