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 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
- Budget 2022 proposes that the deadline to file a pre-certification form is extended from 60 to 120 days effective February 22, 2022. This impacts productions that first incur accredited BC labour expenditures on or after February 22, 2022
- Productions that first incurred accredited BC labour expenditures before February 22, 2022 but after June 30, 2020 have 60 days to file a precertification form (per Budget 2020)
- If a pre-certification form is not submitted within the specified number of days, production companies are unable to claim labour expenditures incurred prior to filing the form. This reduces the production services tax credit available to the production company
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
- 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.
We strongly recommend you submit your accreditation certificate application to Creative BC within 12 months of your corporation’s taxation year end.
For applications submitted later, Creative BC cannot guarantee it will be processed in time for you to file with the CRA before the deadline, which may result in denied claims.
For tax years beginning before February 19, 2020, you must claim the credit no later than 36 months after the end of your corporation’s tax year. For tax years beginning on or after February 19, 2020, you must claim the credit no later than 18 months after the end of your corporation’s tax year.
As part of our COVID-19 supports, the deadline to claim this tax credit for claims required to be made between March 13, 2020 and December 30, 2020 was extended to six months from the original due date or to December 31, 2020, whichever was earlier.
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: