British Columbia Increases Film Tax Incentives for 2025

British Columbia’s film and television industry is set to receive a significant boost in 2025, following an announcement from provincial leaders that promises to enhance tax credits for both Canadian-content productions and foreign-led projects. These changes, aimed at cementing BC’s status as a preeminent global filming location, come as the province seeks to overcome challenges related to the pandemic, labor disruptions, and mounting competition from other regions offering robust production incentives. The move reflects the growing consensus that strategic investments in the screen sector can generate widespread economic benefits, ranging from high-paying production jobs to robust activity across ancillary businesses like catering, logistics, and construction.

Enhanced Film Incentive BC and Production Services Tax Credits

A pivotal element of the new plan involves raising the Film Incentive BC (FIBC) tax credit from its current 35% to 36%, and increasing the Production Services Tax Credit (PSTC) from 28% to 36%. These hikes, set to go into effect for productions with principal photography starting on or after January 1, 2025, are designed to make BC more competitive in a shifting global market. The FIBC specifically supports Canadian-content productions, helping local creators bring distinctly Canadian stories to the screen, while the PSTC is geared toward international productions that choose to film in the province.

Beyond the general increases in both credits, the government has also introduced an additional 2% bonus for large-scale projects whose BC-based production costs exceed C$200 million (approximately US$140.5 million). The bonus reflects the province’s desire to lure mega-budget films and long-running television series, which in turn can sustain stable employment and generate significant economic spin-offs.

Targeting Large Productions and Sustaining Jobs

Strengthening BC’s tax incentives underscores the provincial government’s goal of safeguarding the thousands of high-paying positions that the screen industry provides. In 2023, prolonged US writers’ and actors’ strikes, coupled with worldwide production slowdowns, contributed to a downturn in local job numbers—from 37,000 in 2022 to just 26,000 in 2023. By enhancing the financial enticements for foreign studios and domestic producers alike, policymakers are determined to stabilize employment levels and ensure continuity for regional cast and crew.

Premier David Eby highlighted BC’s status as “one of the busiest film and TV production centres in North America” during the announcement. Acknowledging the “big hit” the sector has faced over the last few years, he emphasized how these new measures would restore the competitive edge needed to remain a top destination for filmmakers. When large-scale productions choose BC as their primary filming site, local businesses also stand to benefit, with spin-off effects rippling through accommodations, restaurants, transportation companies, and various creative service providers.

Adapting to a Changing Landscape and Restoring Regional Incentives

The updated tax regime takes into account the evolving nature of the film industry, where global studios weigh multiple factors—ranging from labor availability to state-of-the-art production infrastructure—before greenlighting a location. Feedback from animated productions also led the province to reinstate regional and distant location tax credits for companies with a physical presence outside the Metro Vancouver, Fraser Valley, and Whistler/Squamish areas. This move is particularly beneficial for animators and VFX professionals who might be situated in more remote parts of BC, aiming to stimulate growth and job creation across the entire province rather than just in major urban hubs.

Government and Industry Leaders Speak Out

BC’s Minister of Finance, Brenda Bailey, underscored that tax incentives are crucial not just for the industry’s survival but for the province’s broader economic health. By proclaiming BC’s commitment to maintaining a flourishing film and TV ecosystem, she expects the region will see further investment from abroad. Likewise, Spencer Chandra Herbert, Minister of Tourism, Arts, Culture and Sport, recounted a recent trip to Los Angeles, where studio executives expressed a strong willingness to channel more production budgets into BC if certain barriers—such as insufficient financial incentives—were addressed.

Representatives from industry groups, including Screen BC and IATSE Local 891, praised the move as a vital step in recapturing production momentum after a turbulent period. They stressed that big-budget projects not only create work for skilled film crews, but also contribute significantly to secondary sectors like catering, set design, transportation services, and advanced technology jobs in digital animation.

Securing International Partnerships and Economic Growth

With foreign productions typically making up more than 80% of BC’s total production spending, preserving strong international relationships is paramount. Studio heads in Los Angeles are keenly aware of any changes in tax policy that might make one region more appealing than another. Provinces like Ontario and other competing film hubs such as Georgia and New Mexico in the United States have been proactively bolstering their own incentive programs, leading to an increasingly competitive landscape.

BC leaders are confident that increasing the FIBC and PSTC, along with the new 2% bonus for high-budget projects, will position the province as a top-tier contender for blockbuster shoots and major TV series. The sustained growth of the BC motion-picture industry is also instrumental in expanding the local talent pool, as professionals continually hone their craft on cutting-edge productions that draw upon diverse skills—be it cinematography, VFX, or specialty wardrobe design.

Looking Ahead to 2025 and Beyond

British Columbia’s investment in higher tax incentives signals a strategic intent to reaffirm the province’s standing as a production powerhouse, even as the film industry as a whole grapples with technological shifts and global economic uncertainties. The changes not only aim to revitalize the industry post-pandemic and post-strike but also ensure that creative professionals find stable, rewarding work that contributes to the cultural and economic fabric of the province.

While it remains to be seen how these enhanced incentives will measure up against other regions’ offerings, the consensus among policymakers, financiers, and industry insiders is that BC’s renewed commitment to competitive tax policies sends a strong message. By appealing to both homegrown talent and foreign studios, British Columbia anticipates continued growth in its motion-picture sector, ensuring the lights stay bright on set, and the cameras keep rolling in 2025 and beyond.