Province Increases Competitive Advantage with Tax Credit Changes

first_imgChanges to the Film Industry Tax Credit and Digital Media Tax Credit announced today, Dec. 6, by Premier Darrell Dexter, will ensure the province’s film, television and new media industry continues to be one of the most competitive in Canada. “Innovative and competitive sectors such as this, play a significant role in the economic future of our province,” said Premier Dexter. “These changes will help increase the local industry’s competitive advantage, by providing more incentives to produce in Nova Scotia. More production means more high-value job opportunities for Nova Scotians.” Residency requirements for both credits were changed so that someone only has to so be a resident in the province during the production period. The total production cap for the Film Industry Tax Credit was also removed. These changes will be effective for productions starting on or after Dec. 1, 2010. “Eliminating the cap on labour for the Film Industry Tax Credit will, I believe, be beneficial for animation because of the disproportionately labour intensive nature of this part of the industry,” said Michael Donovan, executive producer and CEO of DHX Media Ltd. “Our animation studio in Halifax has 65 employees. Because of this change, we expect that to more than double, over the next 18 months, to 150.” DHX is a Halifax-based creator and distributor of television and film with a primary focus on children’s programming and animation. Previously, the Film Industry Tax Credit was based on what was less, either 50 per cent of the costs of eligible labour or 25 per cent of total production costs. Due to the labour intensity of digital animation, the cap limited the ability of animators to take full advantage of the credit. “We are thrilled with the updates to these important industry incentives,” said Ann MacKenzie, president and CEO of Film Nova Scotia. “This shows government’s commitment to this industry and their understanding of the major economic benefits it brings to the province.” Last month the province introduced its economic growth strategy, jobsHere, which focuses on learning, competitiveness and innovation. Nova Scotia’s film, television and new media industry is the fourth largest in Canada, generating over $100 million in economic activity and creating about 3,000 full- time jobs annually.last_img