montreal: The Feb. 28 federal budget reaffirms government’s commitment to new support for Canadian movies as a follow-up to the ’99 Speech from the Throne promise of additional support for the production of Canadian stories and images.

While feature film was not mentioned in Finance Minister Paul Martin’s House of Commons speech, a passage on page 71 of the budget document (under the chapter heading ‘Maintaining Sound Financial Management’) reads as follows: ‘To this end, the Government will work over the course of the coming year to modernize its support for feature films to improve the diversity and quality of Canadian films and reward success. As well, the administration of the tax credits that support film and television production will be simplified and strengthened.’

The budget statement echoes recent comments by Heritage Minister Sheila Copps at the recent cftpa/apftq Prime Time rally in Ottawa. Copps told producers that private sector investment would be an essential component of additional public support of Canadian movies.

cftpa has led the fight for a simpler tax credit, says president Elizabeth McDonald.

‘We are very happy to see this and I think it will benefit the industry, that coupled with the commitment (that) within the year there will be a new program to support feature film,’ says McDonald. She says the commitment is ‘for this year, and that means next year when we’re talking to you this will be finished.’

The budget makes specific reference to the rules for the federal content tax credit, formally known as the Canadian Film or Video Production Tax Credit.

The consultation (in the budget speech appendix ‘Simplified Film Tax Incentives’) will be carried out with industry participation, and should:

* lead to a simplified calculation for the cfvptc, based more closely on Canadian labor content;

* reflect the original objectives of the existing eligibility requirements for film and video productions first announced in the 1995 budget;

* create no significant change in terms of the overall level of government support.

The federal government supports two tax-credit programs: cfvptc, generally equal to 25% of eligible labor expenses for certified Canadian film or video productions; and the Film or Video Production Services Tax Credit, applicable to foreign productions shot in Canada, generally equal to 11% of eligible Canadian labor.