The Ontario government plans to enhance the production tax credit for foreign producers.
At present 25 percent of the qualified Ontario labour spend, the credit would expand to cover “the purchase or rental of qualifying tangible properties such as equipment and studio rentals”. The amended credit will take affect for expenditures after June 30.
In making the announcement, Ontario would seem to be keeping pace with Quebec, where an enhanced tax credit now covers 25 percent of a production’s Quebec-based budget. However, an Ontario government spokesperson could not confirm if Ontario’s proposal will match Quebec’s credit in covering such expenses as hotel rooms, air travel and food. The state’s proposal must still pass through the Legislature. Quebec’s credit was passed by its National Assembly on June 12.
That said, according to Ron Haney, CEO and executive director of the Directors Guild of Canada, foreign producers have confirmed over US$200m in production spending will remain in Ontario as a result of the announcement.
According to industry data, Ontario’s film and television production sector generates approximately C$2bn annually for the provincial economy. The province’s creative and entertainment sector is the third-largest in North America by employment after California and New York, with more than 276,000 jobs.