FIlm Tax Credits At Issue As Budgets Shrink

Two Canadian provinces have decided to cut back on film tax credits, decisions presumably the result of increasing pressures on provincial budgets and decreasing funds. On April 23, 2015, Ontario announced that it would cut its foreign film tax credit from 25% to 21.5%. Earlier this week, Nova Scotia announced a new rate of 25% for indigenous productions and the same for foreign productions, which could rise another 5% in certain circumstances.  More here from the CBC.  (See former rates here).

Meanwhile, Louisiana’s very generous film tax credit program may be on the chopping block, given the state’s $1.6 billion revenue shortfall for FY 2015/2016. The legislature is struggling with decisions concerning the film tax credits and other business incentives in order to close the money gap before June 30. Last year, Louisiana paid out $250 million in film tax credits.