The B.C. government has confirmed plans to increase both of B.C.’s tax credits to 36% as part of the 2025 budget.

The increase was announced in a news release from the government on Thursday (Dec. 12) and  will see the province’s production services tax credit (PSTC) increase to 36% from 28%. The Film Incentive BC (FIBC) tax credit will also increase to 36% from 35%. Additionally, productions with a cost greater than $200 million will receive a 2% bonus.

While the FIBC tax credit applies solely to Canadian productions, the PSTC is applicable to international productions filming in the province. B.C. accounted for 45% of foreign production in Canada in 2022-23, according to the Canadian Media Producers Association’s 2023 Profile report. Both credits are based on B.C. labour expenditures.

The upping of the tax credits, with the approval of the province’s 2025 budget legislation, will apply for productions with principal photography beginning on Jan. 1, according to the Thursday release.

The goal of increasing the credits is to attract major productions to the province and to ensure that industry jobs remain in B.C., said the release.

“Today our government is signalling a strong and strategic action plan to ensure that our collective investments continue to deliver thousands of quality, well-paying jobs, generous dividends across B.C.’s supply chain and ancillary businesses, and incremental cross-sector growth,” said Gemma Martini, founder and CEO of Langley-based Martini Film Studios in a statement.

When the potential changes to B.C.’s tax credits were proposed as part of Eby’s campaign promises in B.C. recent election, some local producers felt that even with these changes, the industry would need more stimulation.

“Eby’s promise to up the tax credit is comforting. I think that’s a baseline,” Arielle Boisvert, partner and EVP of production at Vancouver’s Brightlight Pictures told Playback Daily. “I think we need to do more. We need to do better.”

Boisvert said she would like to see the tax credit expand to encompass other eligible costs outside of labour expenditures. She would also like the province to develop the credits to be more competitive and aggressive to better align with the B.C. industry’s economic impact.

“It’s been a tough slog for the industry,” says Boisvert. “COVID, strikes and now just a general overhaul of the number of productions studios and streamers are making across the board.”

The confirmation of the tax credit increase follows a November B.C. delegation sent to California to promote and grow the province’s film and TV industry. The delegation, headed by Screen BC, included Minister of Tourism, Arts, Culture and Sport Spencer Chandra Herbert; Nina Krieger, parliamentary secretary for arts and film; and Minister of Finance Brenda Bailey.

In October, B.C.’s NDP won a tight race over the B.C. Conservative party with 47 seats, the minimum needed for a majority government, to the Conservatives’ 44.

B.C. is not the only film hub looking to increase its competitiveness. Earlier in October, California governor Gavin Newsom announced a proposal to increase the state’s Film & Television Tax Credit Program from an annual allocation of US$330 million to US$750 million.

Image courtesy of the Province of British Columbia; pictured (L-R): Crystal Braunwarth, Nina Krieger, Brenda Bailey, David Eby, Spencer Chandra Herbert, Gemma Martini