Enhanced Tax Credits Will Help Retain And Attract Jobs

The McGuinty government is giving a boost to Ontario's film and television industry with an investment that would sustain and strengthen both the domestic and foreign production sectors.

"We are committed to creating a supportive business environment in which our film and television industry can not only survive, but thrive," said Culture Minister Madeleine Meilleur. "The sector generates $2 billion annually for Ontario's economy and is a major contributor to our quality of life. All Ontarians have a stake in the success and sustainability of this important industry."

If passed by the legislature, the government would invest $48 million in two tax credits that would be effective January 1, 2005. Specifically, the investment would:

Increase the Ontario Film and Television Tax Credit for domestic productions from 20 to 30 per cent for five years, and maintain the 10 per cent regional bonus credit
Increase the Ontario Production Services Tax Credit for foreign productions from 11 to 18 per cent, subject to review before the end of 2005.
"I applaud Minister Meilleur's hard work in building a more competitive tax credit to support this important industry," Finance Minister Greg Sorbara said. "We see this investment as a way to stimulate economic growth and job creation. Working with the industry, we have developed some performance measures that they will need to meet to maximize the value of this tax credit for their members."

"The more than 20,000 people who work in Ontario's film and television business were given their future back today," said Brian Topp, Executive Director of ACTRA Toronto and co-chair of Film Ontario. "We're very grateful that the McGuinty government is stepping up to reinvest in our industry. Today's announcement will pay off in greater stability; in strengthening and building Ontario's role as Canada's domestic film and television centre; and in greater competitiveness in the global production industry. That's excellent news for working people in the film and television industry."

The enhancements would be effective for labour expenditures incurred on or after January 1, 2005, and would be subject to performance reviews to ensure that they are meeting their objective of sustaining and strengthening film and television production activity in Ontario. The Ontario Production Services Tax Credit would be subject to an annual review and the Ontario Film and Television Tax Credit would be subject to a performance review before January 1, 2010.