Tax Credits – Production Services Tax Credit
On March 12, 2009, the government passed legislation to remove the requirements that principal photography of a production must start before June 1, 2013 to claim any of the production services tax credits and before January 1, 2010 to claim the 7% additional production services tax credit.
The Production Services Tax Credit Program provides refundable tax credits to accredited production corporations who produce accredited film or video productions in British Columbia. These credits are available to both domestic and foreign producers and there is no Canadian content requirement.
The program consists of four distinct credits:
- the production services tax credit
- the regional production services tax credit
- the distant location production services tax credit
- the digital animation or visual effects production services tax credit
For more information on the PSTC, please see bulletins CIT 010, British Columbia Production Services Tax Credit, CIT 011, British Columbia Digital Animation or Visual Effects Tax Credit and our frequently asked questions.
The credit is fully refundable, but must first be applied against total income tax payable. There are no carry-back or carry-forward provisions.
For information about the federal tax credit, please see the Canada Revenue Agency website.
Production corporations may qualify for the Film and Television Tax Credit (FTTC) program. To find out more about the FTTC click here.
Claiming the Credits
To claim the credit, complete form T1197, British Columbia Production Services Tax Credit, attach the accreditation certificate issued by British Columbia Film and file them along with your T2 Corporation Income Tax Return.
A separate form T1197, British Columbia Production Services Tax Credit and accreditation certificate are required for each production. Enter the total amount of credits from all productions you are claiming on line 672 on Schedule 5, Tax Calculation Supplementary - Corporations.
You must claim these credits no later than 36 months after the end of the tax year.
Legislation
Please see Part 5 of the British Columbia Income Tax Act and the Film and Television Tax Credit Regulation.
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