Throwing a life preserver to its drowning film industry, New Brunswick is developing a digital media tax credit while it scraps the province’s film tax credit.

In an April 14 memo to the New Brunswick film and TV industry, the provincial government confirmed that it was withdrawing the 40% film tax credit, which local producers could tap to help fund films they made.

Carolyn MacKay, deputy minister of wellness, culture and sport, also indicated the province was eliminating the development loan and equity investment program for the provincial film industry.

But New Brunswick is pledged not to leave its film industry entirely in the lurch.

“We recognize that as film industry stakeholders, you are concerned about the long-term viability of the industry and for that reason, over the coming year, the government will begin work on developing a digital media tax credit and will seek input from the industry,” the New Brunswick bureaucrat told the industry.

Rival Canadian provinces, including British Columbia, Ontario and Quebec, have introduced lucrative digital media tax credits of their own to complement existing film tax credits.