Major hike for SODEC, tax credits tightened

Montreal: Quebec Finance Minister Pauline Marois’ March 11 budget allocates an additional $20 million in discretionary program funding for the film and A/V sector – bringing total 2003-04 credits to an unprecedented $36.9 million.

The $20 million is sourced from $7.4 million in new credits and a tightening or reduction in the refundable production tax-credit program, evaluated at $12.6 million.

Most of the new funding, $16 million, will go to SODEC which will see its direct program budget increase from $15.5 million this year to $31.5 million in 2003-04.

The budgetary measures are in support of a new ‘Quebec Policy on Film and Audiovisual Production’ unveiled at the same time as the budget by Culture and Communications Minister Diane Lemieux.

The industry had lobbied hard for additional funding for SODEC at MCC hearings held last fall.

Lemieux’s policy allocates an additional $4 million for screenwriting and development, for a total program budget of $5.3 million; an additional $9 million for French-language feature film production (total $17.9 million); $1 million more for auteur documentaries and short films (total $3.4 million); $600,000 for international marketing (total $1.7 million), and an additional $1.4 million for marketing, festivals and alternative exhibition programs.

CALQ (the Quebec arts council) funding for media arts and grants to established filmmakers increases $700,000 to $2.1 million.

New credits of $3.3 million are also granted for a variety of programs including training, research, Quebec location promotion and A/V heritage.

Highlight modifications to the Quebec production tax-credit program include:

* a reduction in the minimum effective rate (cap) for French-language feature films and auteur documentaries, and giant-screen productions, from 22.5% of total production costs to 20.25%

* a decrease from 16.67% to 15% of total production costs for TV production and English-language features (33 1/3% of labour costs up to a maximum of 45% of total production costs).

The budget establishes the top-up credit for qualifying special F/X and computer-animation at 11.67% of labor costs, and at 10.5% of labour costs for regional productions.

The new province-wide regional bonus adds 3% to the 33 1/3% base rate, with the qualification that shooting takes place 25 km outside of Montreal.

Earlier, the government announced $5 million in additional credits for pubcaster Tele-Quebec.

-www.mcc.gouv.qc.ca

-www.finances.gouv.qc.ca