Manitoba to keep its generous film, TV tax credits

WINNIPEG The Manitoba government is making its tax credit for film and video productions permanent and hinting at more help for the industry despite a consultant’s report that called for a reduction.

The tax credit, touted by the province as one of the biggest in Canada, was to expire at the end of this year. But it has proven effective in attracting projects and jobs, Culture Minister Cathy Cox said this week. “When you look at the size of the industry, even Sean Penn was here last week looking at film production here in Manitoba, so it really is booming.”

The industry can expect more measures in the spring budget, said Finance Minister Scott Fielding.

People who produce film or video projects in Manitoba can get back either 45 per cent of a project’s labour costs or 30 per cent of all production costs, and there are bonuses for shooting in rural or northern locations.

Saskatchewan saw its industry decline in 2012 when the province replaced its film and video tax credit with a less-costly rebate.

In 2017, Manitoba hired outside consultants to review its tax credit. The KPMG report said the credit is the most generous among the provinces and recommended reducing it to a level in line with other western provinces. The tax credit has cost up to $24 million annually.