British Columbia Enhances Film Tax Credits for Hollywood Productions

British Columbia has provided a significant incentive for Hollywood filmmakers by increasing the foreign film tax credit for major studios and streaming services that film in the province.

The recent provincial budget has raised the production services tax credit for foreign projects filmed locally from 28% to 36%, effective January 1, 2025. Additionally, major projects with local spending exceeding $200 million will receive an extra 2% bonus.

This increase in film tax credits comes as B.C. has felt the repercussions of pandemic-related industry shutdowns and last year’s dual strikes in Los Angeles. “Our province is home to one of the busiest film and TV production centers in North America,” stated B.C. Premier David Eby, noting that Los Angeles productions are increasingly choosing to film outside California, including in Canada.

“However, film production in B.C. has faced significant challenges over the past few years due to the pandemic, labor disruptions, and shifts in industry practices. We are enhancing tax incentives and our competitive edge to ensure that our province remains a preferred destination for filmmakers from Canada and around the globe, employing skilled crews from British Columbia,” he added.

Currently, the westernmost Canadian province is hosting productions for the latest seasons of The CW’s Wild Cards, CBS’ Tracker and Fire Country, and SyFy’s Resident Alien.

B.C.’s increase in film tax credits follows California Governor Gavin Newsom’s announcement in October 2024 to significantly raise the cap on production tax credits from $330 million to $750 million annually. This initiative aims to retain productions that are increasingly opting to film outside California in states and countries with more favorable tax incentives.

Other regions are also enhancing their tax incentive programs. In June, Illinois Governor J.B. Pritzker signed legislation allowing game shows, national talk shows, and contest-based reality TV to qualify for tax credits when filmed in the state. Meanwhile, Japan introduced an incentive program offering reimbursement of up to 50% of qualifying expenses incurred in the country.

While B.C. remains the top choice for Los Angeles producers filming in Canada, foreign location and service production value dropped by 36.5% to $1.68 billion for the year ending March 31, 2024, according to a recent survey by the Canadian Media Producers Association, which represents local independent producers.

Foreign productions, primarily from Hollywood, account for over 80% of total production spending in B.C., as Los Angeles producers seek to capitalize on favorable currency exchange rates due to the declining value of the Canadian dollar against the U.S. dollar.

This sector faced significant challenges last year due to Hollywood strikes that halted industry operations for over six months, coupled with a global decline in production activity amid an industry contraction.

Person

David Eby, Gavin Newsom, J.B. Pritzker

Company Names

The CW, CBS, SyFy, Canadian Media Producers Association

Titles

Wild Cards, Tracker, Fire Country, Resident Alien

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