Manitoba Extends Film Tax Credit Scope

by Mike Godfrey, Tax-News.com, Washington

22 April 2010

Manitoba's Budget 2010 brought in a new 30% production tax credit, and the province now has the highest tax credits available to film and television producers in Canada, which are worth about CAD16m (USD16m) to the industry annually.

Starting with productions that commenced principal photography after March 2010, production companies will be able to elect to claim either the film tax credit based on up to 65% of eligible labour costs, or a new 30% tax credit based on production costs incurred and paid for labour, goods, and services provided in Manitoba that are directly attributable to the production of an eligible film. These credits are now in place until March 2014.

“Manitoba was the first in Canada to introduce a frequent-filming bonus, along with a labour tax credit that is the best in Canada,” noted Carole Vivier, CEO of Manitoba Film & Music. “We have to be readily competitive with other jurisdictions that have amended or added all spend incentives as the world’s economic situation continues to shift."

The bureaucracy associated with claiming the subsidies has also been reduced; the following changes became effective March 24, 2010:

• Production companies may file Form T2029, 'Waiver in Respect of the Normal Reassessment Period', to extend their application deadline by 18 months;
• Amendments to the governing legislation will provide Manitoba with greater flexibility to make changes in response to external changes; and
• Federal limitation periods will be adopted for filing a Manitoba film tax credit certificate with the Canada Revenue Agency.

The new 30% film and video production tax credit announced in Budget 2010 will assist in the production of a third season of the award-winning HBO television series 'Less Than Kind', produced by Manitoba’s own Buffalo Gal Pictures.

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