February 4, 2010 - VANCOUVER - The British Columbia government announced Wednesday changes to the provincial tax credit system that gives the video game industry its first major tax credit and sweetens B.C.’s labour tax credit for the film and television industry.

The credits, announced by Finance Minister Colin Hansen and Kevin Krueger, Minister for Tourism, Culture and the Arts, provide for a new BC Interactive Digital Media tax credit of 17.5 per cent of labour costs in the development of video games. It also sweetens the labour tax credit for foreign producers, raising it to 33 per cent from 25 per cent. The qualified labour expenditure cap rises from 48 to 60 per cent, and the digital animation and visual effects tax credit rises 2.5 per cent, from 15 to 17.5 per cent.

Aside from raising the labour cap, there was no improvement for indigenous film producers making Canadian projects.

The changes, subject to approval by the legislature, would apply to productions with principal photography beginning after Feb. 28 of this year. The Interactive Media tax credit applies to video game development projects that begin after Aug. 31, 2010.

The B.C. film and television industry employs more than 20,000 people and production spending in 2008 was worth $1.2 billion. Figures for 2009 have not been released.

SOURCE: http://www.vancouversun.com/travel/increases+film+production+credit/2518958/story.html