The premier of British Columbia announced a significant hike on Thursday in tax incentives for film and TV, as the province struggles with a sharp decline in production.
Premier David Eby said the Production Services Tax Credit — which goes to international productions — will increase from 28% to 36%. The domestic credit will also increase from 35% to 36%.
In making the announcement, Eby said British Columbia must do more to compete with other jurisdictions. The local industry has faced the same downturn that has sidelined film workers around the globe.
“This is a sector that’s taken some hits,” Eby said at a press conference. “The decision by major studios to reduce some of their budgets on productions, the impact of labor disruptions, other jurisdictions competing with British Columbia for these productions with significant subsides for the industry, means we need to respond. We need to continue to be competitive, and we need to be world-leading.”
British Columbia launched its film incentive in 1998 and has since become a major hub for TV production, including Hallmark movies, Netflix’s “Virgin River,” HBO’s “The Last of Us” and “Shōgun” on FX. The latest proposal is especially aimed at enticing large productions, with a 2% bonus going to those with a budget over $140 million (CA$200 million).
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The province spent $640 million (CA$909 million) on film incentives in the 2023-24 fiscal year, of which about 80% went to foreign productions. The increase — if approved in next year’s budget process — would lift it to $843 million (CA$1.2 billion), according to a Ministry of Finance estimate. The increase will be retroactive to Jan. 1, Eby said.
The move comes weeks after California Gov. Gavin Newsom vowed to increase the state’s tax incentive from $330 million a year to $750 million. (California’s population is seven times larger than British Columbia’s, and its economy is 18 times larger.)
As with Eby, Newsom said the hike was needed to compete with other jurisdictions and to stem a decline in production volume. The California Legislature must approve the increase next year, and it would take effect on July 1.
New York also hiked its incentive to $700 million last year.
Several B.C. leaders took a trade mission to Los Angeles in November, as part of an effort to persuade Hollywood studio executives to bring more productions to the province.
“The one thing they said to us was, ‘We want to make sure you’re tax competitive,’” said Spencer Chandra Herbert, the minister for tourism, arts, culture and sport, at the press conference. “We want to be tax competitive too. … They said if you can make that happen, we will bring big productions here.”
The SAG-AFTRA and Writers Guild of America strikes had a significant impact on the British Columbia film sector, as employment declined from 37,000 to 26,000 in 2023, according to Creative BC, which administers the incentives.
Crystal Braunwarth, the business representative at IATSE Local 891, said that workers have been forced to draw on their savings, take early retirement and even switch careers amid a 40% drop in production. She called the announcement a “significant milestone” that will help get people back to work.
“It is not a race to the bottom,” she said. “It is job creation that benefits British Columbians and invests in the people.”
Eby’s New Democratic Party won a slender majority in the October election, extending his tenure as premier. He had promised to increase the filming incentive during the campaign.
At the press conference, Eby was also asked to respond to President-elect Donald Trump’s threat to impose a 25% tariff on all Canadian goods. He said Canada would impose retaliatory tariffs if Trump follows through.
“We will do our part to respond,” he said.