Vancouver: Indigenous producers unwrapped an early Christmas present from the b.c. government: the long-awaited B.C. Tax Credit that is hoped to stimulate a stronger homegrown industry.

Announced Oct. 10, the so-called Film Incentive b.c. rebates up to 20% of eligible labor costs. There are also bonuses for training opportunities and projects that shoot outside Greater Vancouver.

And unique among Canadian tax credits is that bctc is modular, in that producers can claim the base and bonus credits together or separately and u.s.-backed shows using Canadian taxable service companies are eligible to claim the job training and regional bonuses.

When it takes effect April 1, 1998, the bctc will break down like this:

* The base credit is 20% of labor costs (capped at 48% of total production budget). Based on the total budget, the base credit maxes out at 9.6%

* The regional bonus pays up to 12.5% of labor and, for the total budget, maxes out at 6%.

* The training bonus pays up to 3% of labor and, for the total budget, maxes out at 1.4%.

* Overall the bctc can rebate up to 17% of a production’s overall budget.

The bctc, announced on the set of Poltergeist at The Bridge Studios in Burnaby, is widely acclaimed in the industry as offering something for everyone: domestic and service producers alike.

‘It’s gratifying that the government has the courage of its convictions to make a strong statement about the industry,’ says entertainment lawyer Arthur Evrensel, one of two paid consultants who worked with the government and the film sector advisory committee to draft the bctc. ‘The entire industry is pleased. In particular, the tax credit leverages local producers so that they qualify for Telefilm money.’

Qualifying companies must be b.c.-based and owned, control copyright of the project and meet cavco criteria. A minimum of 75% of the production and post-production costs must be spent in b.c. And while out-of-province investors are permitted in projects, only the b.c. company will get the refunds.

For example, Vancouver’s Pacific Motion Pictures makes Poltergeist with backing from mgm. pmp, presumably, can apply for the regional and/or apprenticeship bonuses if they are applicable, recoup the rebate and flow it through to mgm if that is what has been arranged.

In making the announcement, b.c. Premier Glen Clark and Minister Responsible Jan Pullinger said the bctc will stimulate the creation of 2,500 new jobs and $100 million in new production in the first year.

‘This announcement is about jobs for b.c.,’ says Clark. ‘[The bctc] will help provide new training opportunities for young people. It will also provide a level playing field, allowing us to firmly establish a b.c.-owned and operated industry while continuing to attract foreign-owned production.’

How the apprenticeship bonus will be structured has yet to be determined, however, the original recommendation suggests that productions need to hire a certain number of apprentices in each department. The number of apprentices will be tied to the size of the production budget.

The legislative amendments will be introduced in the spring, but program guidelines will be made available prior to its implementation.

The good news about the tax credit and its applications for foreign producers comes at a critical time when relations with u.s. producers are starting to falter.

A letter from Dennis Brown, vp production at ABC Pictures in l.a., was widely circulated Oct. 9. His sentiments are being taken seriously by local insiders, but are tempered by cautions that problems are caused by ‘growing pains.’

After 15 years working with the Vancouver film community, Brown says: ‘The luster of Vancouver has worn off for me.

‘I have witnessed strikes, threats of strikes, lawsuits between competing unions, restricted areas of shooting, greatly increased wages for crew and especially cast, excessive ubcp administration fees, high municipality fees, unreasonable union and guild staffing requirements, lengthy negotiations of a master agreement, and in general, a lack of understanding of the industry and a diminished spirit of enthusiasm for filmmaking. It reflects a film community that has become spoiled and complacent and one that appears not to appreciate its good fortune.

‘Will I come back to Vancouver? I am not sure, but I will take a longer, harder look at other production areas as was the case of the two most recent projects that we are producing in Toronto and Calgary.’