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Lily Pictures

BC and Canadian Tax Credits

Provincial Production Services Tax Credit (PSTC)

The provincially run PSTC is a labour-based incentive that provides a tax credit to Canadian and International film and television production corporations that have incurred eligible labour costs in British Columbia. This tax credit is not subject to Canadian content requirements and there is no limit that may be claimed. All eligible tax credits compound.

*Must apply within 120 days of first accredited BC labour expenditure

Basic PSTC                                                        28%

Regional PSTC                                                    6%

Distant Location Tax Credit                             6%

Maximum Production Tax Credit             40%      

Additional Tax Credits:

Digital Animation, Visual Effects + Post-Production (DAVE)    16%

FAQs: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/film-tv/faqs

Film Incentive BC Tax Credit (FIBC)

Film Incentive BC (FIBC) is a refundable labour-based corporate income tax credit available to Canadian owned and controlled production corporations that have a permanent establishment in BC. This tax credit is designed to encourage film, television, digital animation, and visual effects production in British Columbia. All eligible tax credits compound.

Basic FIBC                                                           35%

Regional Tax Credit                                        12.5%

Distant Location Tax Credit                                6%

Maximum Production Tax Credit            53.5%

Additional Tax Credits:

Digital Animation, Visual Effects + Post-Production (DAVE)      16%

Training Tax Credit                                                                           30%

Script writing Tax Credit                                                                  35%

Sample Calculator: https://www.creativebc.com/services/motion-picture-tax-credits/film-incentive-bc/sample-fibc-calculator/

FAQs: https://www.creativebc.com/services/motion-picture-tax-credits/film-incentive-bc/fibc-faqs/

Canadian Film or Video Production Services Tax Credit (PSTC/Canadian Tax Credit)

The federally run Film and Video Production Services Tax Credit is available to Canadian-based production companies or production service companies at a rate of 16% of the qualified Canadian labour expenditure for a production. Productions eligible for the PSTC generally feature non-Canadian creative control and non-Canadian copyright ownership.

Treaty Co-Productions

To qualify for an official treaty co-production with the Canadian regulatory body (CAVCO), we require Canadian distribution from a distributor and/or broadcaster. With this, a production can qualify for the higher tax credits, funding from Telefilm Canada, and/or the Canada Media Fund. Potential for public funding increases if your story inherently possesses Canadian elements and the writer or director are Canadian. Co-productions require shared copyrights and usually a minimum financial contribution of 20% from the minority partner.