Province will Increase Film Industry Tax Credit

Premier Rodney MacDonald announced today, Sept. 13, that the government of Nova Scotia will increase the Film Tax Credit in an effort to make the province's film industry the most competitive in Canada.

"Nova Scotia will have the most aggressive film tax credit in the country," Premier MacDonald announced at the opening of the Atlantic Film Festival in Halifax. "We realize that a healthy and vibrant film industry contributes to our overall economic growth, and that the province needs to play its part to ensure that growth continues."

The increase in film tax credits are as follows:

• the tax credit for filming in Halifax will be at 50 per cent, up from 35 per cent.
• for films shot in rural Nova Scotia, the credit will be 60 per cent (an addition of five per cent from the existing rate).

Also, a company will receive an additional five per cent should it film three films in two years. This means there is potential to receive a film tax credit up to 65 per cent, if shot in rural Nova Scotia.

Tax credits are the most popular form of incentive for the film industry and are used in other Canadian provinces, the U.S.A., the U.K., Europe and Australia. Nova Scotia was one of the first Canadian provinces to introduce a film tax credit in 1995.

"A number of factors are coming into play this year including a short ACTRA strike, a stronger Canadian dollar, and more attractive incentives in other jurisdictions," said Ann MacKenzie, CEO of the Nova Scotia Film Development Corporation. "We do not want to lose our position as the fourth largest film centre in the country, a position we have held for the past ten years."

Nova Scotia is known for many positive attributes that help attract film production including experienced film production crews, talented actors, impressive locations and a solid infrastructure.

"Increasing the province's film tax credit is welcomed by the Nova Scotia Motion Picture Industry Association," said David MacLeod, chair of the association. "This will allow our film and television industry to be intensely competitive and ensure employment for hundreds of Nova Scotians."