B.C. Government Extends Digital Media Tax Credit for BC Film and Interactive Digital MediaWednesday, February 18, 2015
Finance Minister Michael de Jong
Victoria, BC, February 18, 2015--(T-Net)--The British Columbia Government announced that it is expanding the Digital Animation or Visual Effects tax credit to post-production activities, and extending the Interactive Digital Media tax credit to 2018, Minister of Finance Michael de Jong announced today with the introduction of Balanced Budget 2015.
As promised, the Digital Animation or Visual Effects (DAVE) tax credit will apply to labour expenditures on eligible post-production activities for productions where principal photography begins on or after March 1, 2015.
The Interactive Digital Media tax credit was introduced in 2010 and set to expire in 2015, but Budget 2015 extends the credit to 2018 to continue providing support for the digital media industry. The Interactive Digital Media tax credit is a 17.5% refundable tax credit on eligible salary and wages for eligible companies that develop interactive digital media products in B.C.
British Columbia also supports filmmakers, actors and other industry participants through a suite of refundable tax credits designed to encourage film and television production activity in all areas of B.C. The credits serve to reduce the cost of wages for film and television companies, and make operating in B.C. more affordable.
The motion picture industry spends over $1.1 billion per year on production activity in British Columbia, generating an estimated 20,000 direct and indirect jobs. B.C.'s digital-media industry generates about $1.2 billion in revenue and employs approximately 14,000 British Columbians.
“The film, television and digital media industries are an important element in the diverse B.C. economy, attracting skilled workers to high-value jobs. Expanding and extending these credits helps support a successful film and interactive digital media sector.” said Minister of Finance Michael de Jong.
According to DigiBC, the non-profit association representing the digital media and wireless industry of B.C., the IDMTC was a catalyst that helped sustain the industry and minimize job losses during the global economic downturn prior to 2010. After the global economy rebounded, the IDMTC helped kick-start new digital and wireless companies in the province and jump-started hiring by companies.
Over the past five years, the IDMTC has helped grow B.C.'s digital and wireless workforce to 4,600 full-time employees at both large global and independent local companies, and helped drive a 36 per cent increase to the sector's GDP contribution to $705 million. Today, the industry provides more taxation revenue to the provincial treasury than it receives from the tax credit, according to the association.
"The Government of British Columbia recognizes the positive impact that a growing digital media sector is having on our economy," said Howard Donaldson, President of DigiBC. "The IDMTC encourages innovative technology companies to establish global and regional headquarters in B.C., bringing high-paying jobs that benefit the entire economy. The continuance of the tax credit will lead to continued success, a stronger industry sector, and a leadership position in one of the world's fastest growing industries.
"Today, British Columbia is a hotbed for digital innovation," continued Donaldson. "DigiBC and our members look forward to working with the provincial government to support and grow this sector by optimizing tax policy for the benefit of our home-grown industry, thousands of skilled workers here in B.C., and the communities where our members operate."
“British Columbia is one of the busiest jurisdictions for filmmaking in North America - and with good reason. We have exceptional talent and infrastructure; our tax credits for the film and digital-media industries are just another added incentive for production companies to call B.C. home. I am positive that the measures in Budget 2015 will result in increased investment in the Province, putting more of our talented British Columbians to work.” stated Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour Shirley Bond.
The B.C. government launched BC Creative Futures, a strategy to help foster a creative workforce and support the continued growth of creative industries in British Columbia. For details, visit: http://www.cscd.gov.bc.ca/arts_culture/bccf.htm
Director of Communications
Ministry of Finance
Ministry of Jobs, Tourism and Skills Training
and Responsible for Labour
Copyright © T-NET. All Rights Reserved. | http://www.bctechnology.com