Vancouver: Motion picture bwana Jack Valenti – himself – has told B.C. Film Commissioner Pete Mitchell that b.c. had better ante up or else.

‘And I leave that to people’s imaginations about what `else’ means,’ Mitchell told a crowded hotel ballroom of tax attorneys, accountants and producers attending a Dec. 4 Coopers & Lybrand seminar on federal and provincial tax credits.

The new Ontario tax credit for foreign producers, which dovetails with the new non-cavco 11% federal tax credit designed for foreign producers, has caught b.c. flatfooted. Just weeks after b.c. congratulated itself in announcing draft legislation for a Canadian-content limited provincial tax incentive that nodded to the u.s. service business here, Ontario announced an open incentive ready to service the u.s. studios and broadcasters right now.

The new competition – considered more threatening than the old ofip was to b.c. because of the tax credit’s allure for the u.s. business that makes up 90% of b.c. production budgets – has literally sucked the life out of boffo business predictions for next year.

And if b.c. policy writers aren’t looking at matching Ontario carrot-for-carrot in the drafting of film incentive legislation to be effective April 1, then b.c. will lose.

A case study prepared by c&l shows that u.s. producers of non-Cancon films will have a higher net return of taxes if they work in Ontario.

For example, a $2-million American film made by a Canadian service producer or American branch office nets $10,000 profit. Working out the federal and provincial tax credits for b.c. and Ontario, the refund for b.c. is $56,000 and the refund for Ontario is $110,000. The business case suggests producers ‘forget b.c. and go right to Ontario,’ says c&l tax partner Rod Johnston.

As for the total business in b.c. so far in 1997, total productions are up marginally from 102 to 104 (as of November). Final tallies on direct spending and production budgets, which were on track to beat the $1-billion threshold earlier this year, will be announced in the new year.