SASKATCHEWAN FILM EMPLOYMENT TAX CREDIT BILL

Released on June 4, 1998

Municipal Government Minister Carol Teichrob today gave second reading

of a bill in the Saskatchewan Legislature to boost the Saskatchewan

film and video industry through an employment tax credit.



Saskatchewan's film industry has "experienced exponential growth in

the past few years," Teichrob said. "This growth and development has

not come about by accident, but, partly as the result of a strategic

partnership between government and the industry."



The film and video industry has estimated that, with the tax credit

system, production expenditures should about double to $50 million to

$60 million annually. Employment, both direct and indirect, is also

estimated to double to more than 1,700 by the year 2000.



Cathy McComb, President of the Saskatchewan Motion Picture

Association, says the film tax credit is already creating employment

in Saskatchewan.



"The first production utilizing the tax credit as a part of its

financial structure is underway and has employed more than 275

Saskatchewan residents.



"We are looking forward to a dramatic increase in production as a

result of the tax credit," McComb said.



In the past five years total film and video production has grown to

more than $26 million in 1996-97 from $5 million in 1993-94.



The tax credit was developed following extensive consultations with

the Saskatchewan Motion Picture Industry Association.

The Saskatchewan Film Employment Tax Credit bill "will help our

film community compete in the international film market,"

Teichrob said during second reading of the bill. "The bill

contains two provisions that are unique to Saskatchewan.



"First, the tax credit will cover the salaries of qualified

out-of-province mentors' who come to Saskatchewan specifically

to train local film crews when no qualified Saskatchewan employee

exists.



"Second, the Saskatchewan Film Employment Tax Credit will include

all qualifying labour expenditures of a production. Other

provinces' film tax credit programs do not consider eligible

labour costs to begin until after the final script stage has been

reached."



The Film Employment Tax Credit will provide tax credits

equivalent to 35 per cent of the value of eligible salaries paid

to Saskatchewan residents on eligible film and video projects.

Eligible salaries will be limited to no more than 50 per cent of

a project's total production costs.



Corporations applying for the tax credit must have their head

office located in Saskatchewan. An additional credit of five

per cent of total production costs will be provided for projects

located outside the two major cities.



Projects eligible for the tax credit include television, cinema,

video tape, CD ROM, multimedia and non-theatrical productions.



-30-



For more information, contact:



Sandy Cameron

Municipal Government

Regina

Phone: (306) 787-0531