The British Columbia government is increasing tax incentives for both local and international film and TV projects in an effort to attract more major productions to the province.
Premier David Eby said the tax credit for international projects made in B.C. will jump from 28 to 36 per cent, and an incentive for Canadian-content productions will increase from 35 to 36 per cent.
Huge news from Premier @Dave_Eby today:
— Aileen Machell (@aileenmachell) December 12, 2024
BC gov increasing tax incentives to attract more film productions to BC, helping to strengthen economy and support the 10s of thousands of people who work in the industry here.
Great work @BrendaBailey, @SChandraHerbert and @NinaKriegerBC!
There's also a special bonus to attract blockbuster productions with budgets of $200 million.
Speaking on Thursday at the Martini Town studio, a New-York-themed backlot in Langley, B.C., Eby said tax incentives are the province's "competitive advantage" and increasing them will help the industry that has been battered by the pandemic, labour disruptions and changes to industry practices.
"This is a sector that's taken some hits. The decision by major studios to ... reduce some of their budgets on production, the impact of labour disruptions, other jurisdictions competing with British Columbia for these productions with significant subsidies for the industry, means that we need to respond," Eby said, the Manhattan street scene behind him decorated for Christmas.
"We need to make sure that we continue to be competitive."
Government numbers show the film industry generated $2.7 billion in GDP in 2022 — roughly one per cent of provincial GDP — and $2 billion in 2023, a year affected by strike action and a decrease in global production
A government statement says the incentives begin with productions that have principal photography starting Jan. 1, 2025, and projects with costs of greater than $200 million in B.C. will receive a two per cent bonus.
Gemma Martini, chair of industry organization Screen BC and CEO of Martini Film Studios, told the news conference that it has been a "tumultuous" year for film and television, which supports tens of thousands of jobs.
"It is clear that British Columbia is a well respected and preferred global production partner, but we must be able to compete at the bottom line," she said.
"We expect, we know, our government's announcement will put B.C. back in the game to earn our true 'Hollywood north' reputation."
Foreign film and TV work makes up an average of 80 per cent of total production spending in B.C., and the government says maintaining strong international relationships is critical for the industry to continue to thrive.
The government says it also intends to restore regional and distant-location tax credits that were cut last year for companies with a brick-and-mortar presence outside of Metro Vancouver, the Fraser Valley and Whistler and Squamish.
Eby first promised to increase the tax credits as part of his election campaign earlier this year.
Just days after the new B.C. cabinet was announced in November, a delegation that included Finance Minister Brenda Bailey and Arts and Culture Minister Spencer Chandra Herbert travelled to California to pitch B.C.'s film and TV industry.
Chandra Herbert told the news conference that during the trip they met industry representatives who are now looking at B.C. "in a bigger way" because of the new incentives.
He said the additional two per cent bonus for productions over $200 million is a way to encourage larger productions to come and stay in B.C.
"This is a way of making sure that the workers in this industry, and the companies, know that we're here for them for the long term. You can make these investments long term. You can grow the industry today, tomorrow and into the years ahead," he said.
