Fed tax credit scrap

Vancouver: The Canadian production industry will split along regional lines if Sheila Copps pushes Cabinet to scrap the year-old 11% Federal Production Services Tax Credit, b.c. interests warn.

Amending the tax credit to freeze out foreign producers is one of the top recomendations made by the advisory committee to the Feature Film Policy Review.

But many on the West Coast warn that if Copps pursues the recommendation, the ensuing political battle promises to divide eastern and western producers more readily than the stepped-up taxation on foreign actors has created coast-to-coast solidarity.