Ontario proposes making film tax credits permanent

The McGuinty government today proposed legislative amendments to make the Ontario Film and Television Tax Credit and the Ontario Production Services Tax Credit permanent for domestic and foreign productions. "The film and television industry is a vital part of Ontario's economy. Proposing to make these tax credits permanent will help to significantly grow the production sector and create more jobs for Ontarians," Ontario Culture minister Aileen Carroll said in a statement. "The Ontario entertainment and creative cluster is a cornerstone of our innovative economy," added Ontario Finance minister Dwight Duncan. "In these challenging times, making these enhanced film tax credits permanent would help keep the cameras rolling in Ontario and attract even more projects to Ontario." The legislative amendment comes as several US states, anxious to prop up their ailing economies, are instituting tax breaks and other incentives to lure Hollywood filmmakers. Even Ohio, which has resisted tax breaks for years, has decided it's time to bring in such incentives for the film industry. Ohio is among the few US states that don't already offer a state-level tax break to filmmakers or other financial incentives. An increasing number of states began to offer incentives about six years ago when US filmmakers began flocking to jurisdictions with low costs and other financial perks, including Ontario and other Canadian provinces. The film/television tax credits are among the most popular and successful programs managed by the Ontario Media Development Corporation and the largest by dollar value. Last year, the Ontario government increased the Ontario Film and Television Tax Credit rate to 35% from 30% and the Ontario Production Services Tax Credit rate to 25% from 18%. These two refundable tax credits provided more than $165 million in tax support in 2008. Ontario's creative and entertainment cluster is the third largest in North America by employment after California and New York.

Ontario proposes making film tax credits permanent

Brief | February 20, 2009

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