Conservatives promise to revive film tax credit
PC leader Baillie would spend $34 million in a bid to aid the film and TV industry
Nova Scotia’s Progressive Conservatives are promising to bring back a refundable film tax credit if elected May 30, taking aim at the creative-industry workers the Tories need to win over if they hope to make gains in the vote-rich Halifax area.
Tory Leader Jamie Baillie said Wednesday he would spend $34 million to revive the credit in a bid to aid the film and TV industry.
Baillie said the industry was set back when the Liberals controversially axed the tax in the 2015 budget and needs a tax credit model that is predictable.
He conceded the amount for the new fund is “somewhat open-ended,” and would likely be determined by market conditions.
“This is a projection of the potential we think exists in the industry,” said Baillie. “We aren’t just aiming to grab what we had and replace it; we want to see growth in the film industry because we know the government actually makes money from a thriving industry.”
Baillie wouldn’t say at what level the tax credit would be set under his party’s plan, saying it will be worked out with industry: “I will say this, it will be in the same range as the one that was cancelled a few years ago.”
The Tory announcement follows one last week from the NDP, which pledged a $23-million annual film tax credit, with an additional $10 million in the first year.
The former $24 million tax credit allowed qualifying productions to claim up to a maximum of 65 per cent of labour costs.
It was replaced by an incentive fund that provides base funding that is 25 per cent refundable for all production costs, including labour. Last month, the Liberal government tabled a budget that set the annual fund at $16.9 million.
Erika Beatty, executive director of Screen Nova Scotia, said a Price Waterhouse-Coopers study it commissioned estimated the industry contributed $180 million to the provincial GDP in 2014, which she said was a banner year for productions.
Beatty said in the year following the removal of the tax credit, the production volume dropped to about half that number, but subsequently rebounded “significantly” to about 75 per cent of that figure in 2016.
Regardless of who wins the election, Beatty said it will be important to craft incentives that fit the industry’s needs and recognize its importance to the economy.
“The type of incentive is less important than the competitiveness of the program,” she said.