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Old 05-02-2016, 04:45 PM   #1
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Film Industry Tax Credit Reduction

I'm just gonna go ahead and post this, before someone else comes on and links the vanshittybuzz article:

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Finance Minister Mike de Jong said the new rate for production services tax credit will be set at 28 per cent, a five-point drop from the previous 33 per cent rate. The rate for digital animation or visual effects will also fall from 17.5 per cent to 16 per cent. The changes will be phased in for productions shooting before Oct. 1.

“We think we’ve arrived at a place that will ensure the industry itself continues to grow and enjoy the success that it has, but also there is fairness for other sectors of the B.C. economy,” de Jong said.

De Jong has argued the film tax rates were not sustainable, because the cost of the program had increased from $255 million in 2010 to more than $500 million last year. That’s because the industry is booming. The industry creates 25,000 jobs and pumps millions of dollars back into the provincial economy. The low Canadian dollar has also benefited U.S. productions filming in B.C. The changes could save taxpayers $100 million a year.

This news was not a surprise. The government has been talking with industry members here and in Los Angeles.

“The government couldn’t have done a better job of consulting with the industry and hearing our feedback and making changes to the process they were going through,” said Pete Mitchell, president of Vancouver Film Studios.

“In terms of setting the rate they were very interested to know what number would make substantial change on their end but not create disruption on the job side. So there was a debate back and forth on that.”

The government considered placing an annual cap on the amount of available tax credits, but heard strongly from the industry that it would create uncertainty.

“Some jurisdictions have a cap, so there’s a first-come, first-served approach,” said de Jong, “and it means from a planning point of view a production company can’t be certain what the rules of the cost structure are for them.

“So the industry itself urged us not to adopt a cap approach, so based on that we said, ‘Well, we’re talking about the rates.’ So we had a conversation about the rates.”

NDP critic Spencer Chandra Herbert said he understands government trying to save money by adjusting the tax credit, but hopes the cut wasn’t too much.

“That’s the big risk on this … that with any sort of shave, they start looking around for somewhere else to go where they can save more money,” Herbert said.

“I hope this shave is not seen to be too drastic, because the money is good here and the jobs are good here and we don’t want to scare that away.”

On average B.C. hosts 60-plus film and TV productions a year. There are more than 40 on the Directors Guild of Canada current productions list.

“This is absolutely the busiest it has ever been,” said Mitchell whose Vancouver Film Studios facility has six TV shows shooting there right now.

“So I don’t think a 79-cent dollar, whatever we are at today, that the change from 33 (per cent) to 28 is going to make much of a difference. However, if we see a significant appreciation of the dollar, if it goes back up to 95 (cents), you can bet that we will be beginning the dialogue again with government.”

Source: Cut in film tax credits could save B.C. taxpayers $100 million a year | Vancouver Sun
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Old 05-02-2016, 04:52 PM   #2
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Was reading the cancer spreading in the comments section of the Vanshittybuzz article's FB page. Jesus H Christ, some people are short sighted, they're all up in arms about crusty cunt trying to fuck up a thriving industry. I'd argue she is actually doing a very good job at making sure BC makes the most of a good situation, and it's not often I have praise for something she does.

The tax credits were facilitated to keep the industry here during a slow period when the dollar was high and the industry was not doing well. Now that the dollar is fucked, and the industry is thriving from films and TV flooding back we reduce the credit in order to make the most money off the industry.

If people are going to complain about that, then maybe our resource industry should start complaining about our lack of tax credits. Where are the tax credits for companies like Canfor or local mills who are struggling to continue operations and cutting jobs and hours left right and center? Where are the tax credits for our mining industry where jobs are crumbling under the pressure of low commodity prices?

People need to understand there has to be a balance. Or maybe BC should just give up on commodities all together, and we can all just go be teachers, bus drivers, and work in the film industry.
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Old 05-02-2016, 04:59 PM   #3
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Fuck the film industry, blocking off traffic downtown and taking up parking spots all over the place so Vancouver can pretend to be some American city on some 3rd rate TV series that nobody watches on The CW. Get a real job you fucking hipsters.
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Old 05-02-2016, 05:18 PM   #4
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Actually, making a film is a very difficult task civicblue and Vancouver is a very high populated city. There are a lot more things to complain about than traffic. Try taking the skytrain.
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Old 05-02-2016, 06:40 PM   #5
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I guess we'll have to wait and see how this will affect the industry; I've witnessed first hand how hard it can be to actually film here, they film tons of things in UBC during the summer, and it's not just CW shows; last year they filmed Deadpool here in Vancouver, and it was an amazing success, so let's see if they come back here to film the sequel.
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Old 05-02-2016, 07:32 PM   #6
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33%..wow i knew it was good didn't know it was that good.
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Old 05-03-2016, 12:50 AM   #7
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The bc film industry is worth 2 billion in direct spending, and they get 500 million in subsidies. So they're subsidized by 25% if they need that much help then maybe it's just not a viable industry. As for the 25000 jobs I'd like to know how many of those are year round full time jobs. I dont think there's many other industries that are subsidized to such an extent, I don't know why we have such a hardon for film.
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Old 05-03-2016, 01:00 AM   #8
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This could potentially affect my livelihood, so it matters to me. However as stated in the article, it's not a complete ending of the credits, but a cut, so it will really only start to be an issue if the dollar climbs again.
The film industry pumps millions of dollars back into the local economy, supporting all kinds of businesses, big or small. Tourism, hospitality, restaurants, equipment rentals, venue rentals, and countless retail stores benefit from American production company dollars. Not including what the 30,000 employees of the industry spend on themselves and their families.
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In 2015, productions spent over $2 billion in British Columbia and provided $143 million in paid wages to Vancouver residents. Growing production activity is also reflected in the municipal government’s revenue from film and street-use permits, with over $710,000 in revenue generated last year.
http://www.vancitybuzz.com/2016/02/v...industry-2015/

We definitely don't want to give away our services, and in a perfect world there would be no tax cuts and everyone would come here to shoot. But we must do what we can to keep productions coming to Vancouver.

The biggest threat is productions moving to Toronto. Yes it seems better for Hollywood productions to be in Vancouver with the proximity, time zone etc, but all they care about is the bottom line. Toronto is a huge city and could easily ramp up their film infrastructure even more if more productions want to move there, and if it's cheaper, that's what has, and will happen.
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Old 05-03-2016, 01:01 AM   #9
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The people in this industry (specially actors) are in-part chess pieces of the NWO\Hollywood which is a cultural bacterium that implants itself on peoples brains and controls thinking.
Once it lulls you into debt, you are bond for unstable relationships and substituting your future small stomached child, for a small stomach pet dog to walk and poop as a legacy.
Canadian genocide!
The industry workers are not much different then bomb making factory workers assembling missiles in rural America to kill people.
Boycott them and have more class then the Swedes for once.
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Old 05-03-2016, 01:43 AM   #10
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Originally Posted by CharlesInCharge View Post
The people in this industry (specially actors) are in-part chess pieces of the NWO\Hollywood which is a cultural bacterium that implants itself on peoples brains and controls thinking.
Once it lulls you into debt, you are bond for unstable relationships and substituting your future small stomached child, for a small stomach pet dog to walk and poop as a legacy.
Canadian genocide!
The industry workers are not much different then bomb making factory workers assembling missiles in rural America to kill people.
Boycott them and have more class then the Swedes for once.
I'm curious...is there anything that the Illuminati haven't got their fingers in? Like maybe there's a small town bakery somewhere that just wants to make scones and not holy war.
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Old 05-03-2016, 01:45 AM   #11
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Originally Posted by CharlesInCharge View Post
The people in this industry (specially actors) are in-part chess pieces of the NWO\Hollywood which is a cultural bacterium that implants itself on peoples brains and controls thinking.
Once it lulls you into debt, you are bond for unstable relationships and substituting your future small stomached child, for a small stomach pet dog to walk and poop as a legacy.
Canadian genocide!
The industry workers are not much different then bomb making factory workers assembling missiles in rural America to kill people.
Boycott them and have more class then the Swedes for once.
dude, you need to see someone, you're fucking crazy!
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Old 05-03-2016, 02:13 AM   #12
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Cant you recognize Canadian genocide when its staring you right in the face?


Spoiler!


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I'm curious...is there anything that the Illuminati haven't got their fingers in? Like maybe there's a small town bakery somewhere that just wants to make scones and not holy war.
Can one be found not serving any excitotoxins? Theres bank to be made in that there Parkinsons disease.
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Old 05-03-2016, 02:13 AM   #13
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illuminati is real, that is what i believe in too lol
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Old 05-03-2016, 02:52 AM   #14
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Cant you recognize Canadian genocide when its staring you right in the face?

what?!

edit: CiC, i don't mean 'what' as in 'what is that', I know who Ms. Wurst is, I mean what on earth are you talking about?

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Old 05-03-2016, 02:57 AM   #15
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LOL how did a conversation about film industry tax credits turn into a pic of a bearded lady playing at something called "Conchita Wurst"?
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Old 05-03-2016, 03:06 AM   #16
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LOL how did a conversation about film industry tax credits turn into a pic of a bearded lady playing at something called "Conchita Wurst"?
CiC, that's how.

just so you know, Conchita Wurst is a transsexual (is that what she is?), born male, sings dressed / living as a lady. She wears the beard for whatever reasons, but I believe it is partially to make a huge visual point - which it does.

I don't think CiC lives in a world where transsexuals are ok.

Conchita won the Eurovision song contest a couple of years back, representing Austria (I believe).
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Old 05-03-2016, 03:10 AM   #17
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Did someone say NWO???

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Old 05-03-2016, 07:42 AM   #18
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Okay back on topic....


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Originally Posted by SpartanAir View Post
This could potentially affect my livelihood, so it matters to me. However as stated in the article, it's not a complete ending of the credits, but a cut, so it will really only start to be an issue if the dollar climbs again.
The film industry pumps millions of dollars back into the local economy, supporting all kinds of businesses, big or small. Tourism, hospitality, restaurants, equipment rentals, venue rentals, and countless retail stores benefit from American production company dollars. Not including what the 30,000 employees of the industry spend on themselves and their families.

http://www.vancitybuzz.com/2016/02/v...industry-2015/

We definitely don't want to give away our services, and in a perfect world there would be no tax cuts and everyone would come here to shoot. But we must do what we can to keep productions coming to Vancouver.

The biggest threat is productions moving to Toronto. Yes it seems better for Hollywood productions to be in Vancouver with the proximity, time zone etc, but all they care about is the bottom line. Toronto is a huge city and could easily ramp up their film infrastructure even more if more productions want to move there, and if it's cheaper, that's what has, and will happen.
Why is it that the film industry deserves tax credit over other industries in BC?

You say that the film industry pumps millions back into the tourism, hospitality and food and beverage industry. You think that heavy industry such as forestry, and mining doesn't?

Resource based industries have been the backbone of BC for 100 years, and right now they are not doing well, where is the tax breaks for saw mill operators so that they don't have to lay off half their workforces, or shut down their plants?

I keep seeing the people boasting about this 2 billion dollars brought to BC's because of film, you know what forestry brought to BC last year? 12.4 BILLION, and they did all 12 billion of that without a 30% tax break.
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Old 05-03-2016, 09:02 AM   #19
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Sawmills are on the outs. It doesn't help that the government is letting the companies ship out raw logs to China and whatnot instead of processing them here, which you know, create jobs and all.
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Old 05-03-2016, 10:46 AM   #20
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Sawmills are on the outs. It doesn't help that the government is letting the companies ship out raw logs to China and whatnot instead of processing them here, which you know, create jobs and all.
Well maybe with a 30% tax credit, those companies could afford to keep those jobs here?

See the downhill slope?
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Old 05-03-2016, 10:52 AM   #21
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Well maybe with a 30% tax credit, those companies could afford to keep those jobs here?

See the downhill slope?
I'm agreeing with you, I was just shedding some light on the other issues going on there, and shipping out raw logs has been happening even when times are good in that industry, eliminating middle class jobs while the companies cash in on our resources.

But yeah, it doesn't seem fair when one struggling industry gets breaks while another continues to suffer.
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Old 05-03-2016, 03:01 PM   #22
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Sawmills are on the outs. It doesn't help that the government is letting the companies ship out raw logs to China and whatnot instead of processing them here, which you know, create jobs and all.


The age old argument, the problem is that China doesn't want processed lumber. They'd just go and get their raw logs from some other country and then we'd get nothing at all.
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Old 05-03-2016, 03:06 PM   #23
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The people in this industry (specially actors) are in-part chess pieces of the NWO\Hollywood which is a cultural
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led by HOLLYWOOOOOOOD!!!
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Old 05-03-2016, 03:12 PM   #24
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Fuck the film industry, blocking off traffic downtown and taking up parking spots all over the place so Vancouver can pretend to be some American city on some 3rd rate TV series that nobody watches on The CW. Get a real job you fucking hipsters.
You seem to have forgotten this little flick called Deadpool was filmed in Vancouver, and it set the measly record of being the highest grossing R rated film of all time.
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Old 05-03-2016, 03:20 PM   #25
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You seem to have forgotten this little flick called Deadpool was filmed in Vancouver, and it set the measly record of being the highest grossing R rated film of all time.
So did they need a tax credit?

If the only reason they are filming here is because of a tax credit then we have a problem.
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