Film scoops $130 million from B.C. pockets

Film tax credits, a provincial program designed to keep the film industry coming to B.C., cost this province's citizens $130 million in 2006, according to a report acquired by the Georgia Straight on November 23. That's in spite of the report's observation that B.C.'s ever-increasing tax credits have a questionable impact on the state of the industry.

"Although industry representatives claim that the increase in the credit rates in 2005 led to a significant growth in the British Columbia industry," reads the report, "the industry is generally volatile and such attributions are difficult to support."

The tax-policy branch in the finance ministry prepared the Film Tax Credit Review Final Report in advance of the expiry of B.C.'s film tax credit program in 2008. Despite the report's findings, on October 19, Premier Gordon Campbell announced the program's extension to 2013.

Under the program, a producer can apply to the province for a reimbursement of 18 percent of labour costs for foreign productions and 30 percent for local productions, along with other deductions.

The cost of tax credits has risen sharply since 1998, when the program was created. That year, they cost B.C. $800,000. Both the value of the industry and the percentage of labour costs eligible have grown since then, to the greatest cost of $130 million last year.

According to the October 19 press release, the film industry directly employs 20,000 British Columbians. According to the Ministry of Finance report, however, the industry directly employs fewer just 13,000.

Pieta Woolley
http://www.straight.com/article-120244/news-from-hollywood-north