Vancouver: The b.c. government removed project caps and shrunk the definition of the Lower Mainland in its April 14 announcement of Film Incentive b.c., the new provincial tax credit for domestic producers.

Ian Waddell, the minister in charge of the film industry, called the new refundable income tax credit ‘the best in Canada’ because of the scope of the incentives and the flexibility of the credit. He says Film Incentive b.c. ‘nails down’ the domestic industry and will stimulate $115 million in new production and create 2,500 new jobs in the province.

Applicable to any production expenses incurred after April 1, Film Incentive b.c. offers a basic tax credit of 20% of eligible labor costs, a bonus regional credit for 12.5% of labor costs for productions working outside Vancouver and a bonus training credit of 3% of labor costs (or 30% of trainee salaries, whichever is less) for the development of new skilled workers.

For producers claiming all the credits, about 17% of the overall production budget will be covered.

New to Film Incentive b.c. is the lifting of project and corporate caps, allowing b.c. producers to produce as much applicable programming as they can.

Helena Cynamon, a partner at Forefront Entertainment in Vancouver, was a member of the ad hoc tax credit committee struck to work with the government in the design of Film Incentive b.c. and was one industry crusader who pushed for a no-cap structure.

‘This allows producers to do more than cycles of 22 episodes,’ says Cynamon, adding the cap discriminates against producers who want to take on, for example, a daily drama. ‘We don’t have to pick and choose projects because we are reaching our limit. We can take on a huge order without penalty.’

The regional bonus – which originally was to apply to productions outside the Metro Vancouver area – now includes parts of what is known as the Lower Mainland to match what the technical unions consider the area boundaries in their rate cards. The regional bonus now starts at 168th Street in Surrey and includes the often-used Bordertown sets and Virtue Ranch (once used by Neon Rider) in Maple Ridge, which is considered a municipality within the Lower Mainland.

The basic incentive is for b.c.-controlled production companies that have controlling ownership of the copyright in qualifying productions and the producer must be a b.c. resident and Canadian.

The production must rate six out of 10 for Canadian content, and at least 75% of total production, and post-production costs must be paid to b.c. suppliers. At least 75% of principal photography, as measured in numbers of days of shooting, must occur in b.c. and the project must be aired or exhibited within two years.

Both the regional and training bonuses can be used by foreign productions.

At least 85% of principal photography must take place outside the designated Vancouver boundaries to qualify. The training incentive must be accessed through either the basic or regional incentive.

Film Incentive b.c., which will cost b.c. taxpayers about $15 million in the first year and grow from there, has yet to be passed by the legislature this year, but is expected to be endorsed. B.C. Film, the provincial funding body, will issue the Eligibility Certificates for the new tax credit (which involves new money outside of B.C. Film’s annual budget of $3.5 million).

Guidelines are available by phone at (604) 736-7997 or online at www.bcfilm.bc.ca/fibc.

Waddell says an announcement about provincial incentives for foreign producers is expected within a month’s time.