Christmas came early for the B.C. film industry, with the province announcing on Dec. 12 that it was increasing tax incentives in order to attract more major productions to B.C. and ensure that good-paying film and TV industry jobs stay here.
Budget 2025 will include increases to the Film Incentive BC (FIBC) tax credit, which supports Canadian-content productions, and the production services tax credit (PSTC), which provides a tax incentive for international projects made in B.C.
With the approval of budget legislation, the FIBC will increase from 35 to 36 per cent, and the PSTC will increase from 28 to 36 per cent for productions with principal photography. As a further incentive to attract major productions to the province, projects with B.C. production costs of $200 million or more will receive a two per cent bonus.
Terri Hadwin, film commissioner of the Thompson-Nicola Film Commission, says it’s good news for the industry, and might help attract more foreign productions to our area.
“One of the first questions asked by producers of projects looking to film outside the United States is ‘What are your film tax incentives?’” she says.
“In our region we probably see more domestic productions. Our domestic tax incentives were lucrative, but now with the one for outside productions it will make us that much more of a bright shining star, so maybe this will change things.”
Hadwin notes that a weakening Canadian dollar might also play a part in attracting more filmmakers here.
“The Canadian dollar went down drastically after the [U.S.] election. Not only is Canada ripe with fantastic locations, they can get every third day free, so along with the more lucrative tax incentives it will make us that much more of a destination. Productions are becoming more and more aware of watching every single dollar, and now we have that additional two per cent for anything over a $200 million budget.”
Based on feedback from animated productions, the province also intends to restore regional and distant location tax credits for companies with a bricks-and-mortar presence outside of Metro Vancouver, the Fraser Valley, and Whistler/Squamish. Hadwin says the province previously offered this incentive, then decided to remove it, because some productions were abusing the system.
“We said ‘Hold on, we have some bricks-and-mortar companies located outside these boundaries.’ It was taken away without consultation, so the province is listening to what the industry is telling them.”
"Our province is home to one of the busiest film and TV production centres in North America," says premier David Eby. "But film production in B.C. has taken a big hit over the last few years, responding to significant impacts from the pandemic, multiple labour disruptions, and changes to industry practices.
“We're boosting tax incentives — and our competitive advantage — to ensure that our province remains a destination of choice for filmmakers in Canada and around the world, employing skilled British Columbian crews."
Both the FIBC and PSTC are based on B.C. labour expenditures and can be stacked with other credits that support productions to use locations outside the Lower Mainland, hire B.C.-based scriptwriters, use specialized digital animation and related labour, or provide approved training.
“What’s great about our tax incentives is they’re all labour-based,” says Hadwin. “It means that the dollars the province is giving back are tied to a human being having a paycheque at the end of the day.”
According to Creative BC, more than 37,000 jobs in the province were supported by the motion-picture industry in 2022, compared to 26,000 in 2023. The province’s film industry generated $2.7 billion in GDP in 2022 — roughly one per cent of B.C.'s GDP — and $2 billion in 2023, a year impacted by strike action and a decrease in global production.
“Thanks to the province for recognizing the film industry as being worthy of their time and attention,” says Hadwin, “and for listening to our pleas and increasing the tax incentives so we become more attractive globally.”
