Released on November 3, 2005
Saskatchewan is enhancing film industry incentives to maintain Saskatchewan's competitiveness in attracting major film and television productions to the province and the resulting jobs the industry creates. A tax credit of up to 55 per cent will be made available to film and video producers through legislation to be introduced this fall."The film industry generated $80 million in economic activity and created about 850 full-time equivalent jobs last year," Culture, Youth and Recreation Minister Joan Beatty said. "To continue to grow Saskatchewan's vibrant film industry, the province will enhance its incentives by increasing its film tax credit to producers to 45 per cent of total eligible costs."
A recently completed review of government's investment in the film industry determined that film production volumes have been growing much faster than the local or Saskatchewan's industry labour pool's capacity to support them. To address capacity issues, in addition to the increase in the base tax rate, government is taking two actions:
• Establishing a five per cent bonus tax credit for mid-sized and large productions that use Saskatchewan residents in key positions, which will directly increase capacity,
• Placing a cap of 25 per cent on the number of non-Saskatchewan residents that can qualify for tax-credit support, which will slow growth until capacity catches up and better target the tax credit investment.
A five per cent rural bonus will continue on those productions filming 40 kilometres from Saskatoon and Regina.
The province will amend legislation to introduce the film tax enhancements so they can take effect by January 1st, 2006.
"For every $1 invested in the film employment tax credit, the province saw an additional $6 in investment from other sources," Beatty said. "The film review was completed in January 2004. However, because a number of jurisdictions then introduced their own film tax credit enhancements, the department conducted further analysis."
Saskatchewan's tax enhancements are designed to improve economic benefits to the province while still encouraging a competitive and thriving film industry in Saskatchewan. 15 Years making Pictures: A review of the Provincial Government's Role in the Saskatchewan Film and Video Industry is available online under "Publications" at Culture, Youth and Recreation's website www.cyr.gov.sk.ca.
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For More Information, Contact:
| Janet Peters Culture, Youth and Recreation Regina Phone: (306) 787-4967 |