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 2020 proposed changes related to CreativeBC:
Effective February 19, 2020, the application fee for an accreditation certificate increases to $10,000. See the January 24, 2020 announcement on CreativeBC.
In most circumstances, productions that first incur accredited BC labour expenditures on or after July 1, 2020 must notify CreativeBC within 60 days of incurring the expense.
Related recent changes that have been made are:
Calculation of the regional and distant location production services tax credits for animated productions that start principal photography after June 26, 2015
Basic production services tax credit to reduce the rate from 33% to 28% and the DAVE services tax credit to reduce the rate from 17.5% to 16% for productions that start principal photography on or after October 1, 2016 (transitional rules apply to episodic productions)
Eastern boundary of the Designated Vancouver Area to align with the eastern boundary of the City of Surrey for productions that start principal photography on or after January 25, 2017
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. However, Budget 2020 proposes changing the filing period from 36 months to 18 months for tax years beginning on or after February 19, 2020.
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: