On May 2, 2016 the government of British Columbia announced significant changes to the province’s film, television and digital media tax credit programs. While the changes remain to be approved by the provincial legislature, they will involve the following:
- the Basic Production Services tax credit (PTSC) will drop from 33% to 28% of eligible expenditures
- the Digital Animation or Visual Effects tax credit (DAVE) will drop from 17.5% to 16% of eligible expenditures
Note that the Film Incentive British Columbia tax credit (the “Canadian content” credit) will not be altered by the changes.
The changes will become effective on September 30, 2016, thereby allowing a significant transition period.
For a full run-down of the specifics of the announced changes, see this detailed Dentons client alert.