Alberta eyeing tax credit

Alberta could have a tax-credit program in place by spring, according to the province’s minister of culture and community spirit, Lindsay Blackett, who tells Playback Daily he is pushing to get ‘on a level playing field’ with the rest of Canada.

‘I am in the process of working through our government committees to develop a tax-credit program to get Alberta on a level playing field with other provinces,’ says Blackett. ‘The time frame is tight, but we hope to have something available by April 1 in terms of a tax credit, or some other model of funding.

Blackett says not everyone within the Tory government is sold on a tax credit as the best model for a new production incentive, but Premier Ed Stelmach is committed to some form of new funding system for the industry.

If Blackett can’t get approval on a tax credit, which is his first choice, then he expects the government will support some other financing structure that ensures long-term and stable money is in place.

He did not say what percentage might be put in place if Alberta enters the competitive game of provincial tax credits. Ontario and B.C. earlier this year hiked their tax breaks to 35% for domestic producers and 18% for foreign, while Manitoba’s credit can go well above 45% depending on circumstances.

The province needs a new funding program as soon as possible or it could lose future installments of its current productions – including the CBC series Heartland and Wild Roses, as well as the big-budget Lionsgate/NBC anthology Fear Itself, which shot last winter in Edmonton.

‘We have talked to CBC and assured them we will have some sort of funding model in place that involves increased money and long-term funding, so they can look three years out on their shows and know there is consistent financing available,’ says Blackett. ‘The same with Lionsgate and NBC’s Fear Itself. They are interested in coming back but they want to know we are committed.’

The problem with the current grant system is that, unlike a tax credit, it provides a limited pot of money available on an annual basis, previously $20 million. Productions starting later in the fiscal year may be out of luck if funding has run dry. As well, with a per project cap of $750,000 on movies and $1.5 million for series, Alberta isn’t competitive in attracting big-budget features and series.

Until a new funding program is in place, Blackett has increased the Alberta Film Development Program’s annual allotment by $14 million to $34 million for this fiscal year ending March 31, 2009. He also plans to double the per project caps from $1.5 million to $3 million in the coming weeks.

The minister adds that he wants to implement a development funding program at the script stage, which the grant system currently does not offer.