Production Services Tax Credit

The production services tax credit is for accredited production corporations that produce accredited film or video productions in British Columbia (B.C.). The credits are available to both domestic and foreign producers and there is no Canadian content requirement.

  • Production services tax credit
  • Regional production services tax credit
  • Distant location production services tax credit
  • Digital animation, visual effects and post-production (DAVE) production services tax credit

Changes to the film tax credit rates were announced on May 2, 2016. For productions with principal photography starting on or after October 1, 2016, the proposed changes will decrease the basic production services tax credit rate from 33% to 28% and the digital animation, visual effects and post-production (DAVE) tax credit rate from 17.5% to 16%. These changes will be subject to transitional rules.

Changes have also been made to the calculation of the regional and distant location production services tax credits for animated productions that start principal photography after June 26, 2015.

For full details about the production services tax credit program, including eligibility requirements, and how and when to claim the tax credits, see the bulletins:

Claiming the Credits

You can claim the credit(s) by completing the British Columbia Production Services Tax Credit (T1197) form and attaching the accreditation certificate you receive from Creative BC and submitting it with your T2 Corporation Income Tax Return.

A separate form and accreditation certificate is required for each production. Enter the total amount of credits from all productions you're claiming on line 672 on Schedule 5, Tax Calculation Supplementary - Corporations.

You must claim the credit no later than 36 months after the end of your corporation’s tax year.

The credit is fully refundable, but must first be applied against total income tax payable. There are no carry-back or carry-forward provisions.

Legislation

The following legislation applies to the production services tax credit program:

Creative BC

Contact Creative BC with your questions about eligibility, applications and certificates.

Federal Tax Credits

For information about the federal tax credit for Canadian film or video production services, see the Canada Revenue Agency website.

Frequently Asked Questions

Get answers to your questions about the production services tax credit.

Useful Contacts

Contact us about policy and legislation questions for film tax credits:
 
Contact Canada Revenue Agency about B.C. or federal tax credit claims:
 
  • 1-866-317-0473, Ext. 5 (Vancouver)
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