January 15, 2019
Manitoba Government Renews Film and Video Production Tax Credit
– – –Ensuring Certainty for Industry, Paving the Way for Future Growth: Cox, Fielding
Following a comprehensive review of the Manitoba Film and Video Production Tax Credit, the Manitoba government will make it permanent and remove the ‘sunset clause’, Sport, Culture and Heritage Minister Cathy Cox and Finance Minister Scott Fielding announced today.
“By making the tax credit permanent, we are ensuring there is stability and predictability for Manitoba’s media production industry,” said Cox. “It is important to ensure the industry has what it needs to respond to growing demand for content from streaming services like Netflix, Amazon and Apple, as well as broadcasters across the globe.”
Budget 2018 announced the establishment of an industry working group that partnered with government to evaluate the effectiveness and outcomes of this tax credit.
The working group’s key recommendation was to eliminate the ‘sunset clause’ or expiry date of the credit, which was set for Dec. 31, 2019. It also noted the growth of Manitoba’s film industry is expected to be significant and concluded the credit is an integral tool to ensure growth in the sector.
“Manitoba’s cultural sector is an important contributor to the provincial economy, accounting for $1.6 billion in GDP and generating more than 22,500 culture-related jobs in 2016,” said Fielding. “We recognize the positive effect that film production has on our economy and creative community, and this action will bring long-term certainty to the industry.”
The ministers noted eliminating the expiry date of the tax credit brings Manitoba in line with other jurisdictions offering this type of support including the federal government, Ontario, Quebec and British Columbia.
Since 1997, the Manitoba government has offered a refundable tax credit for labour in film and video productions. Since then, the tax credit has been enhanced several times. In 2017-18, Manitoba had its most successful production season ever of approximately $173 million, with activity expected to increase in future years. A long term commitment to the tax credit, through the removal of the sunset clause, will ensure this growth continues, the ministers said.
For more information, visit www.gov.mb.ca/finance/business/ccredits.html#film.
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