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.
The production services tax credit program consists of four distinct tax credits:
- Production services tax credit
- Regional production services tax credit
- Distant location production services tax credit
- Digital animation, visual effects and post-production (DAVE) 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 basic production services tax credit rate decreased from 33% to 28% and the DAVE tax credit rate decreased from 17.5% to 16%. Transitional rules apply to episodic productions.
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
- Eastern boundary of the Designated Vancouver Area to align with the eastern boundary of the City of Surrey, effective for productions with principal photography starting on or after January 25, 2017
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:
- British Columbia Production Services Tax Credit (CIT 010) (PDF)
- British Columbia Digital Animation or Visual Effects (DAVE) Tax Credit (CIT 011) (PDF)
Claiming the Credits
You can claim the credit(s) by completing the British Columbia Production Services Tax Credit (T1197) form, 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.
The following legislation applies to the production services tax credit program: