To encourage foreign film productions to be shot in Québec, which creates or supports roughly 4500 jobs and generates spinoff of nearly $200 million, on average, the government is announcing a major revamping of the refundable tax credit for film production services.
Accordingly, the tax credit that is currently calculated using a 25% rate on wages and salaries will henceforth apply to all production costs incurred in Québec (the “all-spend” concept).
Moreover, the enhancement for computer-aided special effects and animation on eligible productions will enjoy the same extension. However, the rate of this enhancement will be 5%, bringing the effective rate to 30%.
Since 2003, the government has taken many steps to support the film production
industry. It has announced: