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PRODUCERS APPLAUD FEDS AS THE BOOST TAX CREDIT

Producers across the country are thrilled with the announcement made today in Ottawa that will increase a labour-based tax credit for the Canadian film and television production industry. After almost three years of complex negotiations, the Department of Finance and Department of Canadian Heritage unveiled draft amendments to the Canadian Film or Video Production Tax Credit, which affects Canadian content production.

One of the key highlights is the increase on the base for qualifying labour expenditures; it will climb from 48% to 60%, improving producers' net return. Another important change was treating government equity in a production as government assistance, reducing the negative impact of equity on the tax credit. The changes will also simplify the process for administering the credit.

"This is going to help a lot of producers, and it's exactly what the industry needs right now. Making Canadian shows and films is tough in the current international markets. While financing is never easy, this is what the doctor ordered," says Guy Mayson, acting president and CEO, Canadian Film and Television Production Association.

A generous transitional period provisions should allow many 2003 productions to qualify under the new rules.

The association believes the revamp of the domestic tax credit will restore a much-needed balance to the tax credit system. In the February budget the federal government increased the tax credit for foreign productions shooting in Canada from 11% to 16%. "While foreign location shooting is important, we can't have the domestic industry at a disadvantage. I think the government has helped fix that," said Mayson.

The CFTPA is a non-profit, trade association representing almost 400 Canadian companies involved in the media content production industry. With offices in Ottawa, Toronto and Vancouver, the association promotes the interests of media content producers by lobbying government on policy matters, negotiating labour agreements, offering mentorship programs , copyright initiatives, and producing industry publications.

To read the official press release and backgrounder go to :http://www.fin.gc.ca/news03/03-058e.html

For more information on this, please contact:

Jane L. Thompson
Director of Communications
Canadian Film and Television Production Association

Tel: 613 233 1444 ext 227