Quote:
Originally Posted by Lomac
Also keep in mind that we're not giving the studios money by increasing the tax credits. We're merely taxing them less.
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This is incorrect as the PSTC, which the US studios benefit from, are refundable tax credits up to and
exceeding the corporations payable income tax. In other words, subsidies. They get even more if they are doing VFX or CGI work because they also qualify for the DAVE credit. Hence, the huge amount of US VFX houses setting up branch operations in Vancouver.
For instance, say I work for MPC in Yaletown as a compositor. For every $1000 the pays me, the provincial gov't sends MPC $495 and the federal gov't sends $79, total is $574.
The problem with the film industry and VFX especially, is that it's completely mobile and they will continually chase where the biggest subsidies are, which is why the jobs are in Ontario and Quebec, where the subsidies are eligible on the entire production cost.
Which is why this happened:
B.C. urges Ontario to harmonize film tax credits | Toronto Star
Please note, de Jong himself even calls these subsidized incentives.