Digital Media/Film

If you are looking for the coolest fusions in digital media and film today, you need to check out the creative opportunities in British Columbia, Canada.

Industry Snapshot

British Columbia is a cultural mecca, with a vibrant creative community rich in artistic talent. We are a hotbed for digital media and entertainment convergence, with artistic collaborations that pushing the edge of contemporary imagination.

Over the past 15 years, British Columbia has become known as one of the world’s leading digital media and film centres. Our largest city, Vancouver, is a magnet for talent, attracting world-class companies, capital and creative minds in record numbers. We have companies specializing in interactive design; digital entertainment and games; digital film, animation and special effects; and mobile content and applications, including games and e-learning.

• British Columbia’s Digital Media sector is comprised of more than 1,000 companies, employing over 15,000 people and generating an estimated gross annual revenue of $2 billion.
• Vancouver is home to 45 per cent of the 300 active interactive games companies in Canada, which employ over 2,400 people.
• Vancouver has one of the top video game clusters in the world, with presence from major publishers including EA (Electronic Arts), Nintendo, THQ (Relic Entertainment), Vivendi/Activision (Radical) and Microsoft.

Dubbed “Hollywood North,” British Columbia has the third largest foreign film and production centre in North America, after Los Angeles and New York. The Vancouver region is home to most of British Columbia’s production and post-production activities. Film and visual effects studios take credit for work in Mission Impossible 4, Twilight Saga: Eclipse, and Watchmen.

• In 2010, 246 film and television productions were completed in British Columbia with a total budget of $1.01 billion.
• Total direct and indirect full-time equivalent jobs generated by film and TV production in B.C. are estimated at 36,000.
• British Columbia accounts for about 60 per cent of all foreign location film and TV production in Canada.

With a million square feet of studio space, Vancouver has sufficient capacity to support the biggest movie productions, with outstanding cast and crew, set-construction, filming locations, and post-production and visual effects.

Competitive Advantages

Vancouver is geographically positioned to leverage relationships with L.A.’s entertainment hub, software centres in Seattle and Redmond, Washington, and strong markets for services in Asia. Digital media companies cite access to a vast talent pool as a top reason for doing business in British Columbia.

• Thirty per cent of the digital media companies are located in Vancouver’s business core, resulting in a high rate of strategic relationships and lucrative partnerships.
• Most of our digital media companies are actively involved in collaborative ventures and partnerships with U.S. and other foreign publishers.
• All of Vancouver’s major educational institutions are engaged in digital media, providing outstanding facilities, training and research services to the private sector.

Vancouver’s main advantage in film production is the expertise and talent it has developed during the last two decades. It is now capable of handling every aspect of production for 40 projects simultaneously.

• An experienced and committed local crew base of 30,000 delivers services at the level of their counterparts in Hollywood.
• Vancouver has the benefit of being in the same time zone as Hollywood and offers a highly versatile physical setting.
• Vancouver has very strong post-production capabilities and is home to a number of companies that have created state-of-the-art, award-winning visual effects.

Vancouver’s strong digital media sector is a major asset that will be increasingly important as film/TV and digital media continue to merge.

Incentives

British Columbia is committed to providing a competitive environment for digital media and the film industry, including tax credits. Recipient corporations do not have to be Canadian-owned or have an interest in the copyright. Enhanced credits are available for B.C.-owned and controlled companies.

Film Incentive BC

Qualifying: B.C. controlled production companies.

Tax Credit Rating:

• Basic Credit: 35 per cent refundable tax credit on eligible labour costs, limited to 60 per cent of total production costs.
• Regional Credits: Additional 12.5 per cent on filming outside of the Vancouver area. An additional 6.0 per cent is available for filming in a distant location in B.C.
• Training Credit: lesser of 30 per cent of trainee salaries or 3 per cent of eligible labour costs.
• Labor Credit: Qualified B.C. labour expenditures cap increased to 60 per cent from 48 per cent of production costs.
• Digital Animation or Visual Effects (DAVE) Credit: 17.5 per cent refundable tax credit on eligible labour costs.

B.C. Production Services Tax Credits

Qualifying: B.C. controlled production companies and non-B.C. controlled production companies (must have a permanent establishment in B.C.)

Tax Credit Rating:

• Production Services Credit: 33 per cent* refundable tax credit on eligible labour costs.
• Regional Credits: Additional 6.0 per cent on filming outside of the Vancouver area. An additional 6.0 per cent is available for filming in a distant location in B.C.
• Digital Animation or Visual Effects Credit: 17.5 per cent* refundable tax credit on eligible labour costs.

B.C. New Media Tax Credit

Qualifying: Resident investors who provide investment capital into Venture Capital Corporations (VCC) or Eligible Business Corporation (EBC).

Tax Credit Rate:

• 30 per cent refundable tax credit for individuals to a maximum of $60,000 annually. (Not refundable for corporations with no maximum limit.)

B.C. Interactive Digital Media Tax Credit

Qualifying: Taxable Canadian corporation with permanent establishment in BC in the business of developing interactive digital media products.

Tax Credit Rate:

• 17.5 per cent of eligible salary and wages.

Federal Canadian Film or Video Production Tax Credit

Qualifying: Canadian controlled production companies.

Tax Credit Rate:

• 25 per cent of qualified labour costs for an eligible Canadian production.

Federal Film or Video Production Services Tax Credit

Qualifying: Canadian controlled production companies and non-Canadian controlled production companies (must have a permanent establishment in Canada).

Tax Credit Rate:

• 16 per cent of qualified labour costs for an eligible production.

Industry-led associations work hand-in-hand with government to provide a wide range of supports, including marketing events, forums for investors and producers, and award celebrations.