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This Act is current to May 30, 2018
See the Tables of Legislative Changes for this Act’s legislative history, including any changes not in force.

Income Tax Act

[RSBC 1996] CHAPTER 215

Part 5 — Film and Television Tax Credit

Definitions and interpretation

79   (1) In this Part:

"accredited BC labour expenditure" of an accredited production corporation for a taxation year in relation to an accredited production means the amount that would be the corporation's BC labour expenditure for the taxation year in relation to the production, to the extent that the amounts referred to in the definition of "BC labour expenditure" did not and do not form part of the accredited BC labour expenditure of any other corporation, if

(a) the references to March 31, 1998 in that definition were read as references to May 31, 1998, and

(b) the only amounts that could be included in determining the corporation's BC labour expenditure for the taxation year in relation to the production were in respect of services rendered in British Columbia;

"accredited production" means a film or video production, other than an excluded production, for which the total expenditures included in the cost of producing the production, incurred in the 24 month period beginning when principal photography begins, other than any amounts determined by reference to profits or revenues, are

(a) greater than $100 000, in the case of a production that is an episode, or a pilot for an episode, with a running time of less than 30 minutes,

(a.1) despite paragraph (a), greater than nil, in the case of a production, all or substantially all of which consists of prescribed digital animation or visual effects, that is an episode, or a pilot for an episode, with a running time of less than 30 minutes,

(b) greater than $200 000, in the case of a production that is an episode, or a pilot for an episode, with a running time of 30 minutes or more, or

(c) greater than $1 million, in any other case;

"accredited production corporation", in relation to an accredited production for a taxation year, means

(a) a corporation

(i) that is a BC-based corporation during the taxation year,

(ii) the activities of which throughout the taxation year are primarily the carrying on of

(A) a film or video production business, or

(B) a film or video production services business, and

(iii) that owns the copyright in the production throughout the period during which the production is produced in British Columbia, or

(b) if there is no accredited production corporation within the meaning of paragraph (a) in relation to the production, a corporation that

(i) meets the criteria established by paragraph (a) (i) and (ii), and

(ii) has contracted directly with the owner of the copyright in the production to render production services in respect of the production,

but does not include a corporation all or part of whose taxable income is at any time in the taxation year exempt from tax under Part 1 of the federal Act or a corporation that, at any time in the taxation year, comes within any of paragraphs (a) to (f) of the definition of 'eligible production corporation';

"accredited qualified BC labour expenditure" of an accredited production corporation for a taxation year in relation to an accredited production means the amount, if any, by which

(a) the total of the corporation's accredited BC labour expenditure for the taxation year and for each of the preceding taxation years in relation to the production

exceeds

(b) the total of the following:

(i) all amounts of assistance that can reasonably be considered to be in respect of amounts included in the total referred to in paragraph (a) in respect of the production and that, at the time of filing of the corporation's return of income for the taxation year,

(A) the corporation or any other person or partnership has received or is entitled to receive or can reasonably be expected to receive,

(B) has not been repaid under a legal obligation to do so, and

(C) has not otherwise reduced the total referred to in paragraph (a);

(ii) all amounts that are the accredited qualified BC labour expenditure of the corporation in respect of the production for each of the preceding taxation years before the end of which principal photography of the production began;

(iii) all amounts included in the total referred to in paragraph (a) for which reimbursement is to be or has been provided to the corporation, as a parent within the meaning of paragraph (c) of the definition of "BC labour expenditure", in respect of the accredited production under an agreement referred to in that paragraph;

"assistance" means an amount, other than a prescribed amount or an amount deemed to have been paid under section 84 or under section 125.4 (3) or 125.5 (3) of the federal Act, that would be included under section 12 (1) (x) of the federal Act in computing the income of a taxpayer for any taxation year if that section were read without reference to subparagraphs (v) to (vii) of that section 12 (1) (x);

"BC-based corporation" means a corporation that has a permanent establishment in British Columbia;

"BC-based individual" means,

(a) in relation to an eligible production for which principal photography begins before February 20, 2008, an individual who, by reason of being an individual described in section 2 (1) (a), is subject to tax under section 2 for the year preceding the year in which principal photography of the production begins, or

(b) in relation to an eligible production for which principal photography begins after February 19, 2008, an individual who was resident in British Columbia at the end of December 31 of the year preceding the end of the taxation year for which a tax credit is claimed under this Part in respect of the production;

"BC labour expenditure" of a corporation for a taxation year means, in relation to a film or video production, the total of the following amounts, to the extent that they are reasonable in the circumstances, that did not and do not form part of the BC labour expenditure of any other corporation:

(a) the salary or wages that

(i) are directly attributable to the production,

(ii) are incurred in respect of the production

(A) after March 31, 1998,

(B) in that taxation year, or in the preceding taxation year, and

(C) for the stages of production of the production, after the final script stage to the end of the post-production stage, and

(iii) are amounts that

(A) were paid to BC-based individuals by the corporation in the taxation year, or within 60 days after the end of the taxation year, and

(B) did not form part of the corporation's BC labour expenditure for the preceding taxation year;

(b) remuneration, other than salary or wages, that

(i) is directly attributable to the production,

(ii) relates to services rendered in respect of the production

(A) after March 31, 1998,

(B) in that taxation year, or in the preceding taxation year, and

(C) for the stages of production of the production, after the final script stage to the end of the post-production stage,

(iii) did not form part of the corporation's BC labour expenditure for the preceding taxation year, and

(iv) is paid, for the services referred to in subparagraph (ii), by the corporation in the taxation year, or within 60 days after the end of the taxation year, to

(A) a BC-based individual, to the extent that the amount paid

(I) is attributable to services personally rendered by the individual for the production, or

(II) is attributable to and does not exceed the salary or wages of the individual's employees who are BC-based individuals for personally rendering services for the production,

(B) another corporation that is a taxable Canadian corporation, if all of the issued and outstanding shares of the capital stock of the corporation, except directors' qualifying shares, if any, belong to a BC-based individual and the activities of the corporation consist principally of the provision of that individual's services, to the extent that the amount paid is attributable to services rendered personally by the individual for the production,

(C) another corporation that is a taxable Canadian corporation, to the extent that the amount paid is attributable to and does not exceed the salary or wages of that corporation's employees who are BC-based individuals for personally rendering services for the production, or

(D) a partnership that is carrying on business in Canada, to the extent that the amount paid

(I) is attributable to services personally rendered for the production by a BC-based individual who is a member of the partnership, or

(II) is attributable to and does not exceed the salary or wages of the partnership's employees who are BC-based individuals for personally rendering services for the production;

(c) a reimbursement, other than a reimbursement that constitutes remuneration within the meaning of paragraph (b), made by the corporation to a second corporation (in this paragraph the "parent") of an expenditure that was made by the parent in respect of the production in a particular taxation year of the parent if

(i) the corporation is a wholly-owned subsidiary of the parent,

(ii) the parent is a taxable Canadian corporation,

(iii) the corporation and the parent have agreed that this paragraph applies in respect of the production,

(iv) the reimbursement is made by the corporation in the corporation's taxation year, or within 60 days after the end of that taxation year, and

(v) the expenditure would have qualified for inclusion in the BC labour expenditure of the corporation in respect of the production for the taxation year under paragraph (a) or (b) if

(A) the taxation year for the corporation were the same as the taxation year for the parent, and

(B) the expenditure had been incurred by the corporation for the same purpose, and had been paid by the corporation at the same time and to the same person or partnership, as it was by the parent

but does not include

(d) an amount to which section 37 of the federal Act applies,

(d.1) an amount included in eligible salary and wages under section 134 (2) of this Act in respect of a tax credit claimed under that section by the corporation or by another corporation referred to in paragraph (b) or (c) of this definition,

(e) an amount that is not a cost of producing the production,

(f) without limiting paragraph (e), an amount in respect of advertising, marketing, promotion or market research, or

(g) an amount related in any way to another film or video production;

"certifying authority" means the Minister of Jobs, Tourism and Skills Training and Minister Responsible for Labour;

"distant location" means a prescribed area of British Columbia that is outside of the designated Vancouver area;

"eligible activities" means

(a) prescribed digital animation or visual effects activities, and

(b) prescribed digital post-production activities;

"eligible production" means a film or video production made by an eligible production corporation that meets the following criteria:

(a) the production is not an excluded production;

(b) if the production is for television broadcast and is not directed primarily to children, the production, or, if the production comprises 2 or more episodes, each episode in the production, is suitable for initial broadcast in a standard television time slot of at least 30 minutes;

(c) neither the production nor any interest in a person or partnership that has, directly or indirectly, an interest in the production is a tax shelter investment as defined in section 143.2 (1) of the federal Act;

(d) in the case of a production that is not a documentary, at least 75% of the cost of producing the production, other than costs determined by reference to the amount of income from the production, or, in the case of an interprovincial co-production or a treaty co-production, at least 75% of the cost of producing the British Columbia portion of the production, other than costs determined by reference to the amount of income from the production, is payable to BC-based individuals or BC-based corporations in respect of goods or services provided in British Columbia by

(i) BC-based individuals who are employees, or

(ii) BC-based individuals, or BC-based corporations, in the course of carrying on business through a permanent establishment in British Columbia;

(d.1) in the case of a production that is a documentary, at least 75% of the cost of producing the production, other than costs determined by reference to the amount of income from the production, or, in the case of an interprovincial co-production or a treaty co-production, at least 75% of the cost of producing the British Columbia portion of the production, other than costs determined by reference to the amount of income from the production, is payable to BC-based individuals or BC-based corporations in respect of goods or services provided by

(i) BC-based individuals who are employees, or

(ii) BC-based individuals, or BC-based corporations, in the course of carrying on business through a permanent establishment in British Columbia;

(e) there is a written agreement with a Canadian-controlled corporation that is a distributor of film or video productions, or with a Canadian broadcaster that is not associated, within the meaning of section 256 of the federal Act, with the eligible production corporation, for consideration at fair market value, to have the production shown in Canada within 24 months after the completion of the production;

(f) the following additional conditions are satisfied:

(i) if the production is neither an interprovincial co-production nor a treaty co-production,

(A) the certifying authority has allotted at least 6 Canadian content points in respect of the production in accordance with the regulations, or the production is a documentary and all of the creative positions applicable to the production are occupied by Canadians,

(B) at least 75% of the cost of post-production work for the production, other than costs determined by reference to the amount of income from the production, is for post-production work carried out in British Columbia, and

(C) in the case of a production that is not a documentary, principal photography of the production is done in British Columbia during at least 75% of the total number of days during which principal photography of the production is done;

(ii) if the production is an interprovincial co-production,

(A) the certifying authority has allotted at least 6 Canadian content points in respect of the production in accordance with the regulations, or the production is a documentary and all of the creative positions applicable to the production are occupied by Canadians,

(B) at least 20% of the cost of producing the production, other than costs determined by reference to the amount of income from the production, is in respect of the British Columbia portion of the production, and

(C) at least 50% of the cost of post-production work for the production, other than costs determined by reference to the amount of income from the production, is for post-production work carried out in British Columbia;

(iii) if the production is a treaty co-production, at least 20% of the cost of producing the Canadian portion of the production, other than costs determined by reference to the amount of income from the production, is in respect of the British Columbia portion of the production;

"eligible production corporation", for a taxation year, means a BC-based corporation that is throughout the taxation year a Canadian-controlled taxable Canadian corporation the activities of which in the taxation year are primarily the carrying on of a film or video production business through a permanent establishment in Canada, but does not include a corporation all or part of whose taxable income is at any time in the taxation year exempt from tax under Part 1 of the federal Act or a corporation that, at any time in the taxation year,

(a) is exempt from tax under section 27,

(b) is controlled directly or indirectly in any manner whatever by one or more persons all or part of whose taxable income is exempt from tax under section 27 of this Act or under Part 1 of the federal Act,

(c) is prescribed, under the federal Act, to be a labour-sponsored venture capital corporation for the purpose of section 127.4 of that Act,

(d) has registered an employee share ownership plan under section 2 of the Employee Investment Act,

(e) is an employee venture capital corporation registered under section 8 of the Employee Investment Act, or

(f) is a small business venture capital corporation registered under section 3 of the Small Business Venture Capital Act;

"episode" means an episode of a film or video production intended for television broadcast as a series;

"post-production work" means goods and services directly related to post-production activities, but does not include stock footage;

"qualified BC labour expenditure" of a corporation for a taxation year in respect of a film or video production means the lesser of

(a) the positive amount, if any, determined by the formula

LE + DL - RE
where
LEmeans the BC labour expenditure of the corporation for the taxation year in respect of the production,
DLmeans, if the production is not complete before the beginning of the previous taxation year and the corporation had, for the previous taxation year, a qualified BC labour expenditure that was determined in respect of the production under paragraph (b) of this definition, the difference between the previous year's qualified BC labour expenditure and the amount that would have been the previous year's qualified BC labour expenditure had that amount been calculated under paragraph (a) of this definition, and
RE means the total of those expenditures made in respect of the production
(i)that are included in LE, and
(ii)for which reimbursement is to be or has been provided to the corporation under an agreement referred to in paragraph (c) of the definition of "BC labour expenditure", and

(b) the positive amount, if any, determined by the formula

PCT x (TPC - TA) - LC
where
PCT means
(a)if principal photography of the production begins before March 1, 2010, 48%, or
(b)if principal photography of the production begins after February 28, 2010, 60%,
TPC means the total, determined at the end of the taxation year, of the costs paid or payable, in producing the production, by one or more of the owners of the copyright in the production,
TA means the total of all amounts of assistance in respect of TPC that, at the time of the filing of the corporation's return of income for the year,
(a)the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive,
(b)has not been repaid under a legal obligation to do so, and
(c)does not otherwise reduce TPC, and
LC means the total of the corporation's qualified BC labour expenditures
(a)in respect of the production, and
(b)for each of the preceding taxation years before the end of which principal photography of the production began;

"related" has the same meaning as in section 251 of the federal Act;

"remuneration" does not include an amount determined by reference to profits or revenues;

"salary or wages" has the same meaning as in section 248 of the federal Act as modified by section 125.4 (1) of that Act;

"taxable Canadian corporation" has the same meaning as in the federal Act.

(2) If a film or video production is intended for television broadcast as a series,

(a) for the purposes of a tax credit under sections 80 to 82, all the episodes constituting one cycle of the series are to be considered a single production, and

(b) for the purposes of a tax credit under sections 82.1 to 82.3,

(i) each episode is to be considered a separate production, and

(ii) in the case of 2 or more episodes constituting one cycle of the series, sections 82.1 to 82.3 and the regulations, as they read on the date on which principal photography of the first eligible episode began, apply for the purpose of determining the amount of the tax credit in respect of the other eligible episodes of the cycle.

(3) In subsection (2) (b) (ii):

"eligible episode" means an episode of a cycle of a series for which episode a corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit under section 82.1;

"first eligible episode" means the eligible episode of the cycle for which episode principal photography began before the beginning of principal photography of the other eligible episodes of that cycle.

Basic tax credit

80   (1) A corporation is eligible for a basic tax credit for a taxation year in respect of an eligible production if

(a) principal photography of the production begins

(i) before the end of the taxation year, and

(ii) after March 31, 1998,

(iii) [Repealed 2009-4-25.]

(b) the production is completed within 24 months after the end of the corporation's taxation year in which the principal photography of the production began,

(c) for a production for which principal photography begins before January 1, 2009, the corporation is, throughout the taxation year in respect of which the tax credit is being claimed, an eligible production corporation that is BC-controlled,

(c.1) for a production for which principal photography begins on or after January 1, 2009, the corporation is, throughout the taxation year in respect of which the tax credit is being claimed, an eligible production corporation,

(d) the producer of the production, or, in the case of an interprovincial co-production or a treaty co-production, the producer of the British Columbia portion of the production, is an individual who,

(i) by reason of being an individual described in section 2 (1) (a), is subject to tax under section 2 for the year preceding the year in which principal photography of the production begins, and

(ii) in the year preceding the year in which principal photography of the production begins, is a Canadian,

(e) no distribution of the production is made in Canada, within 24 months after the completion of the production, by a person who is not a Canadian,

(f) for a production that is neither an interprovincial co-production nor a treaty co-production,

(i) more than 50% of the copyright in the production is owned by the corporation or by the corporation and one or both of

(A) in the case of a production for which principal photography begins before January 1, 2009, a BC-controlled eligible production corporation related to the corporation, or in the case of a production for which principal photography begins on or after January 1, 2009, an eligible production corporation related to the corporation, and

(B) a prescribed person, and

(ii) the balance, if any, of the copyright is owned by one or more of the following:

(A) an eligible production corporation;

(B) a corporation that would be an eligible production corporation if it had a permanent establishment in British Columbia;

(C) a recognized person,

(g) for a production that is neither an interprovincial co-production nor a treaty co-production, the initial licensing of the commercial exploitation of the production is controlled by one of the corporations referred to in paragraph (f) (i),

(h) for a production that is an interprovincial co-production or a treaty co-production and for which principal photography begins before January 1, 2009, the corporation, or a BC-controlled eligible production corporation that is related to the corporation, retains a share, acceptable to the certifying authority, of revenues from the exploitation of the production in non-Canadian markets,

(h.1) for a production that is an interprovincial co-production or a treaty co-production and for which principal photography begins on or after January 1, 2009, the corporation, or an eligible production corporation that is related to the corporation, retains a share, acceptable to the certifying authority, of revenues from the exploitation of the production in non-Canadian markets,

(i) for a production that is an interprovincial co-production and for which principal photography begins before January 1, 2009, more than 20% of the copyright in the production is owned by the corporation or by a BC-controlled eligible production corporation that is related to the corporation,

(i.1) for a production that is an interprovincial co-production and for which principal photography begins on or after January 1, 2009 and before January 1, 2012, more than 20% of the copyright in the production is owned by the corporation or by an eligible production corporation that is related to the corporation,

(i.2) for a production that is an interprovincial co-production and for which principal photography begins on or after January 1, 2012,

(i) more than 50% of the copyright in the production is owned by the corporation or by the corporation and one or both of

(A) an eligible production corporation related to the corporation, and

(B) a prescribed person, and

(ii) the balance, if any, of the copyright is owned by one or more of the following:

(A) an eligible production corporation;

(B) a corporation that would be an eligible production corporation if it had a permanent establishment in British Columbia;

(C) a recognized person;

(D) subject to subsection (1.2), a Canadian-controlled corporation that is a party to the co-production agreement relating to the production,

(j) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(k) the corporation makes application for the basic tax credit in accordance with section 85.

(1.1) For the purposes of subsection (1) (f) (i) and (i.2) (i), a corporation referred to in that provision does not, or that corporation with one or both of the other persons referred to in that provision do not, own more than 50% of the copyright in a production unless it controls, or they control, within the meaning of the regulations, the copyright in the production.

(1.2) For the purposes of subsection (1) (i.2) (ii) (D), the copyright owned by the Canadian-controlled corporation is restricted to the extent of the corporation's interest in the production as a co-producer under the co-production agreement.

(2) The amount of the tax credit that may be claimed by a qualifying corporation under this section is,

(a) in the case of a production that is an interprovincial co-production and for which principal photography begins before January 1, 2012, 20% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production multiplied by the percentage of the copyright in the production that is owned by the corporation, or

(b) in any other case, 20% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production.

(3) For the purposes of subsections (2) (a), (4) (a) and (6) (a), "copyright in the production" means that portion of the copyright in the production that is not owned by the following:

(a) any person to whom section 149 (1) (l) of the federal Act applies if the person has a fund that is used to finance film or video productions;

(b) any federal or provincial government agency the mandate of which is related to the provision of financing to film or video productions in Canada.

(4) In addition to the tax credit that may be claimed under subsection (2) but subject to subsection (5), the amount of the tax credit that may be claimed by a qualifying corporation under this section is,

(a) in the case of a production that is an interprovincial co-production and for which principal photography begins before January 1, 2012, 10% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production multiplied by the percentage of the copyright in the production that is owned by the corporation, or

(b) in any other case, 10% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production.

(5) For a qualifying corporation to claim a tax credit in the amount calculated under subsection (4) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin after December 31, 2004;

(b) the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2004";

(c) despite section 79 (2) (a), if the production is intended for television broadcast as a series and principal photography of a cycle of the series begins before January 1, 2005, all the episodes of the cycle for which principal photography begins after December 31, 2004 are to be considered a single production.

(d) [Repealed 2006-2-10.]

(6) In addition to the tax credits that may be claimed under subsections (2) and (4) but subject to subsection (7), the amount of the tax credit that may be claimed by a qualifying corporation under this section is,

(a) in the case of a production that is an interprovincial co-production and for which principal photography begins before January 1, 2012, 5% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production multiplied by the percentage of the copyright in the production that is owned by the corporation, or

(b) in any other case, 5% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production.

(7) For the purpose of determining the amount of the tax credit under subsection (6), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2007".

Scriptwriting tax credit

80.1   (1) In this section:

"eligible BC scriptwriting expenditure" of a corporation means, in relation to a film or video production, the total of the following amounts, to the extent that they are reasonable in the circumstances, that did not and do not form part of the eligible BC scriptwriting expenditure of any other corporation:

(a) the salary or wages of scriptwriters that

(i) are directly attributable to the development of script material for the production,

(ii) are incurred in respect of the production

(A) after the later of

(I) February 20, 2018, and

(II) the date that is 2 years before the date principal photography of the production begins, and

(B) before the end of the final script stage of production of the production, and

(iii) are amounts that were paid to BC-based individuals by the corporation not later than 60 days after the end of the corporation's taxation year in which principal photography of the production begins;

(b) remuneration, other than salary or wages, of scriptwriters that

(i) is directly attributable to the development of script material for the production,

(ii) relates to services rendered in respect of the production

(A) after the later of

(I) February 20, 2018, and

(II) the date that is 2 years before the date principal photography of the production begins, and

(B) before the end of the final script stage of production of the production,

(iii) is paid, for the services referred to in subparagraph (ii), by the corporation not later than 60 days after the end of the corporation's taxation year in which principal photography of the production begins, to

(A) a BC-based individual, to the extent that the amount paid

(I) is attributable to services personally rendered by the individual for the production, or

(II) is attributable to and does not exceed the salary or wages of the individual's employees who are BC-based individuals for personally rendering services for the production,

(B) another corporation that is a taxable Canadian corporation, if all of the issued and outstanding shares of the capital stock of the corporation, except directors' qualifying shares, if any, belong to a BC-based individual and the activities of the corporation consist principally of the provision of that individual's services, to the extent that the amount paid is attributable to services rendered personally by the individual for the production,

(C) another corporation that is a taxable Canadian corporation, to the extent that the amount paid is attributable to and does not exceed the salary or wages of that corporation's employees who are BC-based individuals for personally rendering services for the production, or

(D) a partnership that is carrying on business in Canada, to the extent that the amount paid

(I) is attributable to services personally rendered for the production by a BC-based individual who is a member of the partnership, or

(II) is attributable to and does not exceed the salary or wages of the partnership's employees who are BC-based individuals for personally rendering services for the production;

(c) a reimbursement, other than a reimbursement that constitutes remuneration within the meaning of paragraph (b), made by the corporation to a second corporation (in this paragraph the "parent") of an expenditure that was made by the parent in respect of the production if

(i) the corporation is a wholly-owned subsidiary of the parent,

(ii) the parent is a taxable Canadian corporation,

(iii) the corporation and the parent have agreed that this paragraph applies in respect of the production,

(iv) the reimbursement is made by the corporation not later than 60 days after the end of the corporation's taxation year in which principal photography of the production begins, and

(v) the expenditure would have qualified for inclusion in the eligible BC scriptwriting expenditure of the corporation in respect of the production under paragraph (a) or (b) if the expenditure had been incurred by the corporation for the same purpose, and had been paid by the corporation at the same time and to the same person or partnership, as it was by the parent

but does not include

(d) an amount to which section 37 of the federal Act applies,

(e) an amount included in eligible salary and wages under section 134 (2) of this Act in respect of a tax credit claimed under that section by the corporation or by another corporation referred to in paragraph (b) or (c) of this definition,

(f) an amount that is not a cost of producing the production,

(g) without limiting paragraph (f), an amount in respect of advertising, marketing, promotion or market research, or

(h) an amount related in any way to another film or video production;

"script material" has the same meaning as in section 125.4 (1) of the federal Act.

(2) A corporation is eligible for a scriptwriting tax credit for a taxation year in respect of an eligible production if

(a) principal photography of the production begins in the taxation year,

(b) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 80,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the scriptwriting tax credit in accordance with section 85.

(3) The amount of the tax credit that may be claimed by a qualifying corporation under this section is 35% of the amount determined by the formula

SE – (TA + RE)
where
SEmeans the corporation's eligible BC scriptwriting expenditure in respect of the production,
TAmeans the total of all amounts of assistance that can reasonably be considered to be in respect of SE that, at the time of filing of the corporation's return of income for the taxation year,
(a)the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive,
(b)has not been repaid under a legal obligation to do so, and
(c)has not otherwise reduced SE, and
REmeans the total of the expenditures directly attributable to the production
(a)that are included in SE, and
(b)for which reimbursement is to be or has been provided to the corporation, as a parent within the meaning of paragraph (c) of the definition of "eligible BC scriptwriting expenditure", in respect of the production under an agreement referred to in that paragraph.

Regional tax credit if principal photography begins before April 1, 2003

81   (1) A corporation is eligible for a regional tax credit for a taxation year in respect of an eligible production if

(a) principal photography of the production begins

(i) before the end of the taxation year,

(ii) after March 31, 1998, and

(iii) before April 1, 2003,

(b) the production is completed within 24 months after the end of the corporation's taxation year in which the principal photography of the production began,

(c) the corporation is, throughout the taxation year in respect of which the tax credit is claimed, an eligible production corporation that is Canadian-controlled,

(d) principal photography of the production, or, in the case of a production that is intended for television broadcast as a series and that comprises a cycle of at least 3 episodes, principal photography of at least 3 of those episodes (the "qualifying episodes"), is done in British Columbia outside of the designated Vancouver area during at least 85% of the total number of days during which principal photography of the production or the qualifying episodes, as the case may be, is done,

(e) throughout the period during which principal photography of the production or of the qualifying episodes, as the case may be, is done in British Columbia outside of the designated Vancouver area, the corporation has a production office that is located in British Columbia outside of the designated Vancouver area,

(f) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(g) the corporation makes application for the regional tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by a qualifying corporation under this section is

(a) subject to paragraph (b), 12.5% of the corporation's qualified BC labour expenditure for the taxation year in respect of the production, or

(b) for a film or video production referred to in subsection (1) (d) that is intended for television broadcast as a series, 12.5% of the corporation's qualified BC labour expenditure for the taxation year in respect of the qualifying episodes referred to in that provision.

Regional tax credit if principal photography begins after March 31, 2003

81.1   (1) A corporation is eligible for a regional tax credit under subsection (2) for a taxation year in respect of an eligible production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 80,

(b) principal photography of the production begins after March 31, 2003 and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015,

(c) principal photography of the production, or, in the case of a production that is intended for television broadcast as a series and that comprises a cycle of at least 3 episodes, principal photography of at least 3 of those episodes (the "qualifying episodes"), is done in British Columbia outside of the designated Vancouver area

(i) for at least 5 days, and

(ii) during more than 50% of the total number of days during which principal photography of the production or the qualifying episodes, as the case may be, is done in British Columbia,

(d) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(e) the corporation makes application for the regional tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by a qualifying corporation under this subsection is,

(a) subject to paragraph (b), 12.5% of the amount determined by the formula

where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the production,
RDis the number of days during which principal photography of the production is done in British Columbia outside of the designated Vancouver area, and
TDis the number of days during which principal photography of the production is done in British Columbia, or

(b) for a film or video production referred to in subsection (1) (c) that is intended for television broadcast as a series, 12.5% of the amount determined by the formula

where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the qualifying episodes referred to in subsection (1) (c),
RDis the number of days during which principal photography of the qualifying episodes is done in British Columbia outside of the designated Vancouver area, and
TDis the number of days during which principal photography of the qualifying episodes is done in British Columbia.

(3) For the purpose of determining the amount of the tax credit under subsection (2), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2002".

(4) A corporation is eligible for a regional tax credit under subsection (5) for a taxation year in respect of an eligible production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 80,

(b) principal photography of the production begins after June 26, 2015,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the regional tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by a qualifying corporation under this subsection is 12.5% of the amount determined by the formula

QLE xRLE

TLE
where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the animation production,
RLEis the corporation's BC labour expenditure for the taxation year that is in respect of the animation production and in respect of services rendered in British Columbia outside of the designated Vancouver area, and
TLEis the corporation's BC labour expenditure for the taxation year in respect of the animation production.

Distant location regional tax credit

81.11   (1) A corporation is eligible for a distant location regional tax credit under subsection (2) for a taxation year in respect of an eligible production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under sections 80 and 81.1,

(b) principal photography of the production begins after February 19, 2008 and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015,

(c) principal photography of the production, or, in the case of a production that is intended for television broadcast as a series and that comprises a cycle of at least 3 episodes, principal photography of 3 or more of those episodes, all of which are qualifying episodes referred to in section 81.1 (1) (c) (the "distant location qualifying episodes"), is done in a distant location for at least one day,

(d) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(e) the corporation makes application for the distant location regional tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by a qualifying corporation under this subsection is,

(a) subject to paragraph (b), 6% of the amount determined by the formula

where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the production,
DLDis the number of days during which principal photography of the production is done in a distant location, and
TDis the number of days during which principal photography of the production is done in British Columbia, or

(b) for a film or video production referred to in subsection (1) (c) that is intended for television broadcast as a series, 6% of the amount determined by the formula

where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the distant location qualifying episodes referred to in subsection (1) (c),
DLDis the number of days during which principal photography of the distant location qualifying episodes is done in a distant location, and
TDis the number of days during which principal photography of the distant location qualifying episodes is done in British Columbia.

(3) For the purpose of determining the amount of the tax credit under subsection (2), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2007".

(4) A corporation is eligible for a distant location regional tax credit under subsection (5) for a taxation year in respect of an eligible production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under sections 80 and 81.1,

(b) principal photography of the production begins after June 26, 2015,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the distant location regional tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by a qualifying corporation under this subsection is 6% of the amount determined by the formula

QLE xDLLE

TLE
where
QLEis the corporation's qualified BC labour expenditure for the taxation year in respect of the animation production,
DLLEis the corporation's BC labour expenditure for the taxation year that is in respect of the animation production and in respect of services rendered in a distant location, and
TLEis the corporation's BC labour expenditure for the taxation year in respect of the animation production.

Digital animation, visual effects and post-production tax credit

81.2   (1) A corporation is eligible for a digital animation, visual effects and post-production tax credit for a taxation year in respect of an eligible production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 80,

(b) principal photography of the production begins after March 31, 2003,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the digital animation, visual effects and post-production tax credit in accordance with section 85.

(2) Subject to subsection (3), the amount of the tax credit that may be claimed by a qualifying corporation under this section in respect of an eligible production is 15% of the amount determined by the formula

ALE - (TA + PA + ARE)
where
ALEmeans the total of the corporation's BC labour expenditure for the taxation year and for each of the preceding taxation years directly attributable to prescribed digital animation or visual effects activities for the production,
TAmeans the total of all amounts of assistance that can reasonably be considered to be in respect of ALE that, at the time of filing of the corporation's return of income for the taxation year,
(a)the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive,
(b)has not been repaid under a legal obligation to do so, and
(c)has not otherwise reduced ALE,
PAmeans the total of all amounts determined by this formula in respect of the production for each of the preceding taxation years before the end of which principal photography of the production began, and
AREmeans the total of the expenditures directly attributable to the production
(a)that are included in ALE, and
(b)for which reimbursement is to be or has been provided to the corporation, as a parent within the meaning of paragraph (c) of the definition of "BC labour expenditure", in respect of the production under an agreement referred to in that paragraph.

(3) For a qualifying corporation to claim a tax credit in the amount determined under subsection (2) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin before the date prescribed for the purposes of this paragraph;

(b) the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2002".

(4) In addition to the tax credit that may be claimed under subsection (2) but subject to subsection (5), the amount of the tax credit that may be claimed by a qualifying corporation under this section is 2.5% of the amount determined by the formula in subsection (2).

(5) For a qualifying corporation to claim a tax credit in the amount determined under subsection (4) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after February 28, 2010, and

(ii) before the date prescribed for the purposes of subsection (3) (a);

(b) the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2010".

(6) In addition to the tax credits that may be claimed under subsections (2) and (4) but subject to subsection (7), the amount of the tax credit that may be claimed by a qualifying corporation under this section in respect of an eligible production is 17.5% of the amount determined by the formula

ALE - (TA + PA + ARE)
where
ALEmeans the total of the corporation's BC labour expenditure for the taxation year and for each of the preceding taxation years directly attributable to prescribed digital post-production activities for the production,
TAmeans the total of all amounts of assistance that can reasonably be considered to be in respect of ALE that, at the time of filing of the corporation's return of income for the taxation year,
(a)the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive,
(b)has not been repaid under a legal obligation to do so, and
(c)has not otherwise reduced ALE,
PAmeans the total of all amounts determined by this formula in respect of the production for each of the preceding taxation years before the end of which principal photography of the production began, and
AREmeans the total of the expenditures directly attributable to the production
(a)that are included in ALE, and
(b)for which reimbursement is to be or has been provided to the corporation, as a parent within the meaning of paragraph (c) of the definition of "BC labour expenditure", in respect of the production under an agreement referred to in that paragraph.

(7) For a qualifying corporation to claim a tax credit in the amount determined under subsection (6) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after February 28, 2015, and

(ii) before the date prescribed for the purposes of subsection (3) (a);

(b) the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

(8) Subject to subsection (9), the amount of the tax credit that may be claimed by a qualifying corporation under this section in respect of an eligible production is 11% of the amount determined by the formula

ALE - (TA + PA + ARE)
where
ALEmeans the total of the corporation's BC labour expenditure for the taxation year and for each of the preceding taxation years directly attributable to eligible activities for the production,
TAmeans the total of all amounts of assistance that can reasonably be considered to be in respect of ALE that, at the time of filing of the corporation's return of income for the taxation year,
(a)the corporation or any other person or partnership has received, is entitled to receive or can reasonably be expected to receive,
(b)has not been repaid under a legal obligation to do so, and
(c)has not otherwise reduced ALE,
PAmeans the total of all amounts determined by this formula in respect of the production for each of the preceding taxation years before the end of which principal photography of the production began, and
AREmeans the total of the expenditures directly attributable to the production
(a)that are included in ALE, and
(b)for which reimbursement is to be or has been provided to the corporation, as a parent within the meaning of paragraph (c) of the definition of "BC labour expenditure", in respect of the production under an agreement referred to in that paragraph.

(9) For a qualifying corporation to claim a tax credit in the amount determined under subsection (8) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin on or after the date prescribed for the purposes of subsection (3) (a);

(b) in the case of eligible activities that are prescribed digital post-production activities, the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

(10) In addition to the tax credit that may be claimed under subsection (8) but subject to subsection (11), the amount of the tax credit that may be claimed by a qualifying corporation under this section in respect of an eligible production is the prescribed percentage, if any, of the amount determined by the formula in subsection (8).

(11) For a qualifying corporation to claim a tax credit in the amount determined under subsection (10) in respect of an eligible production, the following rules apply:

(a) in addition to the other requirements in subsection (1),

(i) the corporation must be eligible for a tax credit in respect of the production under subsection (8), and

(ii) principal photography of the production must begin

(A) on or after the date prescribed for the purposes of this clause, and

(B) before the date prescribed for the purposes of this clause,

in respect of the prescribed percentage referred to in subsection (10);

(b) in the case of eligible activities that are prescribed digital post-production activities, the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

Film training tax credit

82   (1) A corporation is eligible for a film training tax credit for a taxation year in respect of an eligible production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under one or both of sections 80 and 81,

(b) one or more BC-based individuals are participating as trainees in an approved training program in relation to the production,

(c) the corporation has obtained a valid eligibility certificate issued to it under section 86 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the film training tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by a qualifying corporation under this section is the lesser of

(a) 3% of the qualified BC labour expenditure of the corporation for the taxation year in respect of the production, and

(b) 30% of the amount by which the payments attributable to training exceed the amount of assistance that the corporation has received, is entitled to receive or can reasonably be expected to receive for that taxation year in relation to

(i) the approved training program, or

(ii) the trainees referred to in subsection (1) (b).

(3) For the purposes of subsection (2) (b), "payments attributable to training" means the salary or wages and remuneration paid

(a) by the corporation,

(b) to the trainees referred to in subsection (1) (b),

(c) in the taxation year, and

(d) in respect of the period during which the trainees to whom the salary or wages or remuneration was paid were participating as trainees in the approved training program in relation to the production.

Production services tax credit

82.1   (1) A corporation is eligible for a production services tax credit for a taxation year in respect of an accredited production if

(a) principal photography for the production begins

(i) before the end of the taxation year, and

(ii) after May 31, 1998,

(iii) [Repealed 2009-4-27.]

(b) the corporation is an accredited production corporation in respect of the production for the taxation year,

(c) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(d) the corporation applies for the tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by an accredited production corporation under this section is 11% of the accredited qualified BC labour expenditure of the corporation for the taxation year in respect of the accredited production.

(3) and (4) [Repealed 2003-6-8.]

(5) In addition to the tax credit that may be claimed under subsection (2) but subject to subsection (6), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 7% of the accredited qualified BC labour expenditure of the corporation for the taxation year in respect of the accredited production.

(6) For an accredited production corporation to claim a tax credit in the amount determined under subsection (5) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after December 31, 2004, and

(ii) before the date prescribed for the purposes of this subparagraph;

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2004".

(7) In addition to the tax credits that may be claimed under subsections (2) and (5) but subject to subsection (8), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 7% of the accredited qualified BC labour expenditure of the corporation for the taxation year in respect of the accredited production.

(8) For an accredited production corporation to claim a tax credit in the amount determined under subsection (7) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin before the date prescribed for the purposes of subsection (6) (a) (ii);

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2007".

(9) In addition to the tax credits that may be claimed under subsections (2), (5) and (7) but subject to subsection (10), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 8% of the accredited qualified BC labour expenditure of the corporation for the taxation year in respect of the accredited production.

(10) For an accredited production corporation to claim a tax credit in the amount determined under subsection (9) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after February 28, 2010, and

(ii) before the date prescribed for the purposes of subsection (6) (a) (ii);

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2010".

(11) In addition to the tax credit that may be claimed under subsection (2) but subject to subsection (12), the amount of the tax credit that may be claimed by an accredited production corporation under this section is the prescribed percentage, if any, of the accredited qualified BC labour expenditure of the corporation for the taxation year in respect of the accredited production.

(12) For an accredited production corporation to claim a tax credit in the amount determined under subsection (11) in respect of an accredited production, in addition to the other requirements in subsection (1),

(a) the corporation must not be eligible to claim a tax credit under any of subsections (5), (7) and (9) in respect of the production, and

(b) principal photography of the production must begin

(i) on or after the date prescribed for the purposes of this subparagraph, and

(ii) before the date prescribed for the purposes of this subparagraph,

in respect of the prescribed percentage referred to in subsection (11).

Regional production services tax credit

82.2   (1) A corporation is eligible for a regional production services tax credit under subsection (2) for a taxation year in respect of an accredited production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 82.1,

(b) principal photography of the production begins after March 31, 2003 and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015,

(c) principal photography of the production is done in British Columbia outside of the designated Vancouver area

(i) for at least 5 days, and

(ii) during more than 50% of the total number of days during which principal photography of the production is done in British Columbia,

(d) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(e) the corporation makes application for the regional production services tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by an accredited production corporation under this subsection is 6% of the amount determined by the formula

where
AQLEis the corporation's accredited qualified BC labour expenditure for the taxation year in respect of the accredited production,
RDis the number of days during which principal photography of the production is done in British Columbia outside of the designated Vancouver area, and
TDis the number of days during which principal photography of the production is done in British Columbia.

(3) For the purpose of determining the amount of the tax credit under subsection (2), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2002".

(4) A corporation is eligible for a regional production services tax credit under subsection (5) for a taxation year in respect of an accredited production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 82.1,

(b) principal photography of the production begins after June 26, 2015,

(c) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the regional production services tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by an accredited production corporation under this subsection is 6% of the amount determined by the formula

AQLE x
RLE
TLE
where
AQLEis the corporation's accredited qualified BC labour expenditure for the taxation year in respect of the animation production,
RLEis the corporation's accredited BC labour expenditure for the taxation year that is in respect of the animation production and in respect of services rendered in British Columbia outside of the designated Vancouver area, and
TLEis the corporation's accredited BC labour expenditure for the taxation year in respect of the animation production.

Distant location production services tax credit

82.21   (1) A corporation is eligible for a distant location production services tax credit under subsection (2) for a taxation year in respect of an accredited production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under sections 82.1 and 82.2,

(b) principal photography of the production begins after February 19, 2008 and, if the production is an animation production, principal photography of the production does not begin after June 26, 2015,

(c) principal photography of the production is done in a distant location for at least one day,

(d) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(e) the corporation makes application for the distant location production services tax credit in accordance with section 85.

(2) The amount of the tax credit that may be claimed by an accredited production corporation under this subsection is 6% of the amount determined by the formula

where
AQLEis the corporation's accredited qualified BC labour expenditure for the taxation year in respect of the accredited production,
DLDis the number of days during which principal photography of the production is done in a distant location, and
TDis the number of days during which principal photography of the production is done in British Columbia.

(3) For the purpose of determining the amount of the tax credit under subsection (2), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2007".

(4) A corporation is eligible for a distant location production services tax credit under subsection (5) for a taxation year in respect of an accredited production that is an animation production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under sections 82.1 and 82.2,

(b) principal photography of the production begins after June 26, 2015,

(c) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the distant location production services tax credit in accordance with section 85.

(5) The amount of the tax credit that may be claimed by an accredited production corporation under this subsection is 6% of the amount determined by the formula

AQLE x
DLLE
TLE
where
AQLEis the corporation's accredited qualified BC labour expenditure for the taxation year in respect of the animation production,
DLLEis the corporation's accredited BC labour expenditure for the taxation year that is in respect of the animation production and in respect of services rendered in a distant location, and
TLEis the corporation's accredited BC labour expenditure for the taxation year in respect of the animation production.

Digital animation, visual effects and post-production services tax credit

82.3   (1) A corporation is eligible for a digital animation, visual effects and post-production services tax credit for a taxation year in respect of an accredited production if

(a) the corporation is eligible for, and has made or is making an application in accordance with section 85 for, a tax credit in relation to the production under section 82.1,

(b) principal photography for the production begins after March 31, 2003,

(c) the corporation has obtained an accreditation certificate issued under section 87.1 in respect of the production and the claimed tax credit, and

(d) the corporation makes application for the digital animation, visual effects and post-production services tax credit in accordance with section 85.

(2) Subject to subsection (3), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 15% of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to prescribed digital animation or visual effects activities for the accredited production.

(3) For an accredited production corporation to claim a tax credit in the amount determined under subsection (2) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin before the date prescribed for the purposes of this paragraph;

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "December 31, 2002".

(4) In addition to the tax credit that may be claimed under subsection (2) but subject to subsection (5), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 2.5% of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to prescribed digital animation or visual effects activities for the accredited production.

(5) For an accredited production corporation to claim a tax credit in the amount determined under subsection (4) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after February 28, 2010, and

(ii) before the date prescribed for the purposes of subsection (3) (a);

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2010".

(6) In addition to the tax credits that may be claimed under subsections (2) and (4) but subject to subsection (7), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 17.5% of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to prescribed digital post-production activities for the accredited production.

(7) For an accredited production corporation to claim a tax credit in the amount determined under subsection (6) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin

(i) after February 28, 2015, and

(ii) before the date prescribed for the purposes of subsection (3) (a);

(b) despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

(8) Subject to subsection (9), the amount of the tax credit that may be claimed by an accredited production corporation under this section is 11% of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to eligible activities for the accredited production.

(9) For an accredited production corporation to claim a tax credit in the amount determined under subsection (8) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1), principal photography of the production must begin on or after the date prescribed for the purposes of subsection (3) (a);

(b) in the case of eligible activities that are prescribed digital post-production activities, despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

(10) In addition to the tax credit that may be claimed under subsection (8) but subject to subsection (11), the amount of the tax credit that may be claimed by an accredited production corporation under this section is the prescribed percentage, if any, of the amount of the corporation's accredited qualified BC labour expenditure for the taxation year directly attributable to eligible activities for the accredited production.

(11) For an accredited production corporation to claim a tax credit in the amount determined under subsection (10) in respect of an accredited production, the following rules apply:

(a) in addition to the other requirements in subsection (1),

(i) the corporation must be eligible for a tax credit in respect of the production under subsection (8), and

(ii) principal photography of the production must begin

(A) on or after the date prescribed for the purposes of this clause, and

(B) before the date prescribed for the purposes of this clause,

in respect of the prescribed percentage referred to in subsection (10);

(b) in the case of eligible activities that are prescribed digital post-production activities, despite paragraph (a) in the definition of "accredited BC labour expenditure" in section 79 (1), the references to "March 31, 1998" in the definition of "BC labour expenditure" in section 79 (1) must be read as "February 28, 2015".

No credit available if section 17 deduction made

83   A corporation that has made a deduction in accordance with section 17 for a taxation year must not claim a tax credit under this Part for the same taxation year.

May not claim both accredited production and eligible production credits

83.1   (1) A corporation may not claim a tax credit in respect of the same production

(a) under one or more of sections 80 to 82, if an amount is deemed to have been paid under section 84 in relation to a tax credit under one or more of sections 82.1 to 82.3 in respect of the production, or

(b) under one or more of sections 82.1 to 82.3, if an amount is deemed to have been paid under section 84 in relation to a tax credit under one or more of sections 80 to 82 in respect of the production.

(2) Without limiting subsection (1), if an amount is deemed to have been paid under section 84 in relation to a tax credit under one or more of sections 80 to 82 in respect of any or all of the episodes of a cycle referred to in section 79 (2) (a), no tax credit may be claimed under one or more of sections 82.1 to 82.3 in respect of any episode of that cycle.

Deemed payment

84   A corporation that has claimed and is eligible for a tax credit under this Part for a taxation year is deemed to have paid, at the time referred to in section 157 (1) (b) of the federal Act, as that section relates to that taxation year, the amount of that credit on account of its tax payable under this Act.

Application for tax credit

85   (1) A corporation that wishes to claim a tax credit under this Part in respect of a taxation year must file the following with its return of income under section 29 for that taxation year:

(a) in the case of a claim for a tax credit under sections 80 to 82,

(i) the eligibility certificate issued to the corporation under section 86 that is appropriate to

(A) the tax credit, and

(B) the film or video production in respect of which the claim is made, and

(ii) if the tax credit is claimed in respect of the taxation year in which the production is completed, the completion certificate issued to the corporation in respect of the production under section 87;

(b) in the case of a claim for a tax credit under sections 82.1 to 82.3, the accreditation certificate under section 87.1 that is appropriate to the film or video production in respect of which the claim is made;

(c) in all cases, an application for the tax credit in the form, and containing the information and records, required by the Commissioner of Income Tax.

(2) A corporation is not entitled to a tax credit in respect of a taxation year under this Part unless, within 36 months after the end of the taxation year, the corporation files the information and records required under subsection (1) for that tax credit.

Eligibility certificate

86   (1) A corporation that wishes to claim one or more of the tax credits referred to in sections 80 to 82 in respect of a film or video production must apply to the certifying authority for an eligibility certificate.

(2) A corporation referred to in subsection (1) must, with its application,

(a) pay an application fee to a person prescribed by the Lieutenant Governor in Council, and

(b) provide the information and records that the certifying authority requires in respect of the corporation and the production.

(3) On receiving an application under this section, the certifying authority must issue to the applicant corporation an eligibility certificate if the certifying authority is satisfied, on the basis of the information provided by the corporation and any other information available to the certifying authority, that the corporation will, on completion of the production, be entitled to receive a completion certificate under section 87 in respect of the production and the specified tax credits.

Completion certificate

87   (1) A corporation that has claimed or intends to claim a tax credit under sections 80 to 82 in respect of a film or video production must apply to the certifying authority for a completion certificate promptly after the completion of the production.

(2) A corporation referred to in subsection (1) must, with its application,

(a) pay an application fee to a person prescribed by the Lieutenant Governor in Council, and

(b) provide the information and records that the certifying authority requires in respect of the corporation and the production.

(3) On receiving an application under this section, the certifying authority must issue to the applicant corporation a completion certificate if the certifying authority is satisfied, on the basis of the information provided by the corporation and any other information available to the certifying authority, that the corporation is eligible for the specified tax credits that have been and are being claimed by the corporation in respect of the production.

Accreditation certificate

87.1   (1) A corporation may apply to the certifying authority for an accreditation certificate in respect of a film or video production for the purposes of claiming a tax credit referred to in sections 82.1 to 82.3.

(2) A corporation referred to in subsection (1) must, with its application,

(a) pay an application fee to a person prescribed by the Lieutenant Governor in Council, and

(b) provide the information and records that the certifying authority requires in respect of the production.

(3) On receiving an application under this section, the certifying authority must issue to the applicant corporation an accreditation certificate in respect of a production if the certifying authority is satisfied, on the basis of the information provided by the corporation and any other information available to the certifying authority, that the production is an accredited production.

Revocation of certificates

88   (1) A certificate may be revoked by the certifying authority, the Commissioner of Income Tax or the minister if,

(a) in the case of a certificate issued under section 86, 87 or 87.1,

(i) an omission or incorrect statement was made for the purpose of obtaining the certificate,

(ii) the corporation to which the certificate was issued does not meet the eligibility requirements for one or more of the tax credits to which the certificate relates, or

(iii) the production in respect of which the certificate was issued does not meet the eligibility requirements for one or more of the tax credits to which the certificate relates, or

(b) in the case of an eligibility certificate issued to a corporation under section 86 in respect of a production,

(i) a completion certificate is not issued under section 87 in respect of the production

(A) within 30 months after the end of the corporation's taxation year in which the principal photography of the production began, or

(B) within any later period that the certifying authority, the Commissioner of Income Tax or the minister may, in writing, provide in relation to a reconsideration being undertaken under section 92 (1) or that the court may order on an appeal brought in accordance with section 92 (2) and (3), or

(ii) a completion certificate issued to the corporation under section 87 in respect of the production is revoked.

(2) A certificate that is revoked by the certifying authority, the Commissioner of Income Tax or the minister is deemed never to have been issued.

Notice of refusal or revocation

89   (1) If the certifying authority refuses to issue a certificate for which application is made under section 86, 87 or 87.1, the certifying authority must promptly give notice of that refusal, together with reasons for the refusal, to the applicant corporation.

(2) If the certifying authority revokes a certificate issued under section 86, 87 or 87.1, the certifying authority must promptly give notice of that revocation, together with reasons for the revocation, to the applicant corporation, the Commissioner of Income Tax and the minister.

(3) If the minister revokes a certificate issued under section 86, 87 or 87.1, that minister must promptly give notice of that revocation, together with reasons for the revocation, to the applicant corporation, the Commissioner of Income Tax and the certifying authority.

(4) If the Commissioner of Income Tax revokes a certificate issued under section 86, 87 or 87.1, the Commissioner of Income Tax must promptly give notice of that revocation, together with reasons for the revocation, to the applicant corporation, the certifying authority and the minister.

Tax credit must be reimbursed

90   Without limiting any provision of this Act or the federal Act, if a corporation has claimed a tax credit under this Part in respect of a film or video production and is, under section 84 of this Act, deemed for a taxation year to have paid the amount of the tax credit on account of its tax payable under this Act, the amount of the tax credit must be repaid, and is, together with interest from the time referred to in section 157 (1) (b) of the federal Act, as that section relates to that taxation year, a debt of the corporation due to the Provincial government, if

(a) the eligibility certificate issued to the corporation under section 86 in respect of that tax credit has been revoked without another eligibility certificate having been issued in replacement,

(b) a completion certificate is not issued to the corporation under section 87 in respect of that tax credit

(i) within 30 months after the end of the corporation's taxation year in which the principal photography of the production began, or

(ii) within any later period that the certifying authority, the Commissioner of Income Tax or the minister may, in writing, provide in relation to a reconsideration being undertaken under section 92 (1) or that the court may order on an appeal brought in accordance with section 92 (2) and (3),

(c) a completion certificate issued to the corporation under section 87 in respect of the production is revoked without another completion certificate having been issued in replacement,

(c.1) an accreditation certificate issued under section 87.1 in respect of the production is revoked without another accreditation certificate having been issued in replacement, or

(d) the corporation is not otherwise entitled to the tax credit.

Recovery of debt

91   (1) Without limiting any provision of this Act or the federal Act, for the purpose of recovering a debt due to the Provincial government under this Part, the Commissioner of Income Tax may

(a) issue a certificate stating

(i) that the amount is due,

(ii) the amount remaining unpaid, including interest, and

(iii) the name of the person required to pay it, and

(b) file the certificate with the Supreme Court.

(2) A certificate filed under subsection (1) with the Supreme Court is of the same effect, and proceedings may be taken on it, as if it were a judgment of the Supreme Court for the recovery of a debt in the amount stated against the person named in it.

Reconsiderations and certification appeals

92   (1) Any decision made under this Part by or on behalf of the certifying authority or the minister or any decision made under section 88 by or on behalf of the Commissioner of Income Tax may be reconsidered and confirmed, reversed or varied by or on behalf of that person.

(2) Without limiting any provision of this Act or the federal Act, a corporation may appeal, in accordance with subsection (3), any of the following:

(a) a decision of the certifying authority to issue or to refuse to issue a certificate under this Part;

(b) a decision of the certifying authority, the Commissioner of Income Tax or the minister to revoke a certificate issued under this Part;

(c) the failure of the certifying authority to issue or to refuse to issue a completion certificate under this Part within 30 months after the end of the corporation's taxation year in which the principal photography of the production began, if the application for the certificate was made as soon as was reasonably practicable in the circumstances.

(3) An appeal must be brought in the Supreme Court, by way of a petition proceeding,

(a) in the case of an appeal brought under subsection (2) (a) or (b), within 120 days after the date of any notice of the decision provided by the certifying authority, the Commissioner of Income Tax or the minister, or

(b) in the case of an appeal brought under subsection (2) (c), within 120 days after the date that is 30 months after the end of the corporation's taxation year in which the principal photography of the production began.

Powers of audit

93   Without limiting any provision of this Act or the federal Act, for the purpose of determining whether a corporation is eligible for a tax credit under this Part, the Commissioner of Income Tax has powers equivalent to the federal minister under sections 230 (3), 231, 231.1, 233 (1) and 236 of the federal Act, and for that purpose those sections apply.

Minister and Commissioner may require information regarding certificates

94   (1) The minister is entitled to obtain

(a) from the certifying authority any information required by the minister respecting certificates issued, refused or revoked by the certifying authority, and

(b) from the Commissioner of Income Tax any information required by the minister respecting certificates revoked by the Commissioner of Income Tax.

(2) The Commissioner of Income Tax is entitled to obtain from the certifying authority any information required by the Commissioner of Income Tax respecting certificates issued, refused or revoked by the certifying authority.

Collection and sharing of information

95   (1) The certifying authority or the Provincial minister may designate any person or body as an advisory body for the purposes of this Part.

(2) Without limiting any provision of this or any other enactment, the certifying authority, the Provincial minister, the federal minister, if a collection agreement is in effect, and any advisory body designated under subsection (1) may

(a) collect any information that is relevant to an applicant's eligibility for a tax credit being claimed or already claimed under this Part, and

(b) share with each other, in accordance with an information-sharing agreement entered into in accordance with section 65, any information respecting an application, an applicant or any other person if the information is relevant to a tax credit being claimed or already claimed under this Part.

Power to make regulations

96   (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) defining any word or expression used in this Part or in any regulations made under this Part;

(b) determining and allocating Canadian content points for the purposes of the definition of "eligible production";

(c) prescribing one or more persons to whom fees payable under or by virtue of this Part, including fees for certificates issued under this Part, must be paid;

(d) prescribing the boundaries for the designated Vancouver area;

(e) prescribing as a distant location an area of British Columbia that is outside of the designated Vancouver area.

(2.1) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing a date for the purposes of section 81.2 (3) (a);

(b) prescribing a percentage, not exceeding 9%, for the purposes of section 81.2 (10), including prescribing different percentages for eligible productions for which principal photography begins before, on or after different dates;

(c) prescribing a date for the purposes of section 81.2 (11) (a) (ii) (A) in respect of a percentage prescribed under paragraph (b) of this subsection;

(d) prescribing a date for the purposes of section 81.2 (11) (a) (ii) (B) in respect of a percentage prescribed under paragraph (b) of this subsection.

(2.2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing a date for the purposes of section 82.1 (6) (a) (ii);

(b) prescribing a percentage, not exceeding 22%, for the purposes of section 82.1 (11), including prescribing different percentages for accredited productions for which principal photography begins before, on or after different dates;

(c) prescribing a date for the purposes of section 82.1 (12) (b) (i) in respect of a percentage prescribed under paragraph (b) of this subsection;

(d) prescribing a date for the purposes of section 82.1 (12) (b) (ii) in respect of a percentage prescribed under paragraph (b) of this subsection.

(2.3) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows:

(a) prescribing a date for the purposes of section 82.3 (3) (a);

(b) prescribing a percentage, not exceeding 9%, for the purposes of section 82.3 (10), including prescribing different percentages for accredited productions for which principal photography begins before, on or after different dates;

(c) prescribing a date for the purposes of section 82.3 (11) (a) (ii) (A) in respect of a percentage prescribed under paragraph (b) of this subsection;

(d) prescribing a date for the purposes of section 82.3 (11) (a) (ii) (B) in respect of a percentage prescribed under paragraph (b) of this subsection.

(3) Regulations that may be made under this Part, other than under subsections (2.1), (2.2) and (2.3), may be made retroactive to April 1, 1998 or a later date that the Lieutenant Governor in Council may determine, and a regulation made retroactive is deemed to come into force on the date specified in the regulation.

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