The Government of Quebec unveiled plans to increase the cap on its film and television production tax credits in the province’s 2024-25 budget.

Effective today, the cap on eligible labour expenditures under the film and TV tax credit for Quebec productions (CPCQ) will increase to 65% from 50%. The increase is to help Quebec producers contend with the rising costs of production, and encourage more original productions in the province.

Additionally, the base rate of its service production tax credit (CSPC) will increase to 25% from 20% in order to attract more foreign productions to Quebec.

The changes to the CPCQ and CSPC will bring an estimated $86.3 million in additional support for the local film industry, according to the budget.

The budget also includes modifications to the tax measure for visual effects and animation, with eligible labour expenditures capped at 65%. The tax measure previously covered total labour expenditures. The change is meant to “ensure consistency with the tax credits aimed at promoting culture,” read the budget.

The 2024-25 budget includes approximately $8.8 billion in spending for the province, including $4.9 billion on health, social services and education; $2 billion to support communities; and $1.9 billion to act on economic priorities.

The document includes $187.1 million in additional spending on Quebec’s cultural sector and promoting the French language.

As part of that funding, public broadcaster Télé-Québec will receive $20 million over two years to support the programming of original content, starting in 2024-25.

Another $21 million is being provided to the Société de développement des entreprises culturelles (SODEC) over four years, beginning in 2025-26, to help enhance its role as a funder for cultural businesses in Quebec. The allocation will be geared to new financing offers and programs aimed at “stimulating cultural entrepreneurship.”

The Conseil des arts et des lettres du Québec (CALQ) will also be receiving $28.2 million over four years, beginning in 2024-25, to help boost its support for cultural organizations.

Finally, the government has set aside $3.9 million for a review of its funding model for the audiovisual sector in the face of evolving technology. Further information on the consultations, including a timeline, will be announced by the Minister of Culture and Communications Mathieu Lacombe at a later date.

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