March 6, 2020
Manitoba Government Enhances Film and Video Production Tax Credit
– – –Incentive to Encourage Private-sector Investment and Attract More Movie Business in Manitoba: Ministers
As part of Budget 2020, the Manitoba government plans to enhance the Film and Video Production Tax Credit to encourage private-sector investment in permanent film infrastructure and attract more animation, visual effects (VFX) and post-production companies to relocate or do business in the province, Finance Minister Scott Fielding and Sport, Culture and Heritage Minister Cathy Cox announced today.
“We are pleased to support Manitoba’s successful film production industry and continue to elevate our province’s reputation as a destination for film and video production, and a place where young Manitobans want to build their careers in that industry,” said Fielding. “This has been a robust year for the film production industry, as demonstrated by the increased demand for the credit to the current in-year forecast amount of $42.5 million from our 2019 budget amount of $31.5 million.”
In the 2020-21 budget, a new Manitoba Production Company Bonus of eight per cent will be added to the 30 per cent cost-of-production credit, increasing the total cost-of-production credit to 38 per cent. The ministers noted that improvements are based on advice from the Manitoba Film and Video Production Tax Credit Working Group.
“With these changes, we hope to see more post-production spending in Manitoba, increased employment opportunities for Manitoba VFX artists, editors and animators, and attract animation post-production and visual effects companies to open new facilities,” said Cox. “We want to make Manitoba even more competitive with other jurisdictions across the country.”
The ministers noted the province continues to build momentum, with the media production industry attracting two companies to open offices in Manitoba. Urban Prairie Post, a Toronto based post-production and visual effects house, now employs many Manitobans at its new facilities in Winnipeg. The Cartel opened its Canadian head office in Manitoba and has produced over a dozen ‘movies of the week’ since opening its permanent establishment.
“We applaud this announcement as it positions Manitoba at the forefront to capitalize on the global demand for content,” said Rachel Rusen Margolis, CEO and film commissioner, Manitoba Film and Music. “The enhancement to the all-spend credit incentivizes inward investment to further develop the lucrative VFX, animation and post-production sectors in the province. The government’s commitment to this industry will result in job creation that will retain local talent and attract new residents to build their careers in media in Manitoba.”
The ministers said growth in the media production industry may also contribute toward the government’s commitment to create 40,000 private-sector jobs in Manitoba over the next four years. Manitoba’s thriving film production industry will also benefit from proposed changes to The Highway Traffic Act announced this week that will permit a local traffic authority to authorize certified flag people to control traffic on roads, rather than relying on local law enforcement.
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