British Columbia is stepping up its game in the competitive film and television production landscape by announcing a significant increase in its tax incentives. Premier David Eby revealed that the Production Services Tax Credit for international productions will rise from 28% to 36%, while the domestic credit will increase from 35% to 36%. This move, aimed at revitalizing the province’s struggling production sector, reflects a broader effort to attract major projects and counteract a decline in industry activity.
A Competitive Push Amid Global Challenges
“British Columbia must do more to compete with other jurisdictions,” Eby said at a press conference, citing the global downturn in production and stiff competition from other regions offering generous subsidies. The province has faced declining production volume due to budget cuts by major studios, labor disruptions, and competitive tax incentives in other areas like California and New York.
To sweeten the deal for big-budget projects, B.C. is introducing a 2% bonus for productions with budgets exceeding $140 million (CA$200 million). The increased incentives, retroactive to January 1, are expected to lift the province’s spending on film incentives from $640 million (CA$909 million) in the last fiscal year to $843 million (CA$1.2 billion).
A Long History of Film Success
British Columbia has been a hub for popular TV productions like Virgin River (Netflix), The Last of Us (HBO), and Shōgun (FX), as well as Hallmark movies. Its robust infrastructure, skilled crews, and diverse locations have made it a preferred destination for filmmakers. However, the recent labor strikes have hit the industry hard, reducing employment from 37,000 to 26,000 in 2023.
IATSE Local 891’s business representative, Crystal Braunwarth, welcomed the announcement as a “significant milestone” to help workers return to the industry. “It is not a race to the bottom,” she said. “It is job creation that benefits British Columbians and invests in the people.”
Global Competition and Trade Missions
B.C.’s move mirrors efforts by other jurisdictions to bolster their production sectors. California’s Governor Gavin Newsom recently proposed increasing the state’s annual film tax incentive from $330 million to $750 million, while New York raised its own to $700 million last year. British Columbia’s leaders, including Spencer Chandra Herbert, Minister for Tourism, Arts, Culture, and Sport, recently visited Los Angeles to reassure Hollywood studios that the province remains tax-competitive.
“The one thing they said to us was, ‘We want to make sure you’re tax competitive,’” Herbert said. “If you can make that happen, we will bring big productions here.”
What’s Next for British Columbia?
Premier Eby’s New Democratic Party, which won a narrow majority in the recent election, made increasing the filming incentive a key campaign promise. As the new tax rates go into effect, the province hopes to see a resurgence in large-scale productions, bringing jobs and economic benefits back to British Columbia.
