Newfoundland and Labrador Regulation 30/23 introduces changes to the Film and Video Industry Tax Credit Regulations under the Income Tax Act, 2000. These amendments attempt to help the provincial government’s commitment to bolstering the local film and video industry. The changes are effective retroactively from April 1, 2013, for broader regulatory applicability, and from July 1, 2021, specifically for the updated tax credit limits.

A key component of this regulation is the increase in the maximum tax credit available to eligible corporations. Under the previous subsection 7(4) of the Film and Video Industry Tax Credit Regulations, the cap was set at $4,000,000 for tax credits that a corporation and its associated entities could claim for all eligible projects started within a 12-month period. The new amendment raises this cap to $5,000,000. This increase is designed to offer enhanced financial incentives to companies engaged in film and video production, thereby promoting industry growth and encouraging further investment in local projects.

The regulation outlines two important implementation dates: Subsection 1(1) of the regulations, which encompasses the broader applicability of the amendments, is considered effective from April 1, 2013. Meanwhile, Subsection 1(2), which details the revised tax credit limits, is retroactively effective from July 1, 2021. This retroactive provision ensures that qualifying projects and corporations can benefit from the increased credit limits for eligible activities conducted since this date.

The film and video industry plays a vital role in Newfoundland and Labrador’s economy, contributing to job creation, cultural development, and tourism. By amending the tax credit regulations, the provincial government seeks to enhance the financial attractiveness of the industry for both local and international film producers. The increased tax credit limit is expected to drive more film and video projects within the province, thereby improving its reputation as a prime filming location and stimulating overall economic activity.

Source: Newfoundland and Labrador (30/23)