May 25, 2015
By Michael Kramer
Cuts to tax credits for some film producers are being delayed – after complaints that the changes would hurt productions already underway.
The provincial budget is likely to be passed soon – and it contains cuts to the Ontario Production Services Tax Credit- as well as the Ontario Computer Animation and Special Effects Tax Credit.
Film industry representatives told a legislative committee last week that they would lose money if the cuts were not grandfathered in- for existing productions.
One company estimated a half-a-million dollar loss – and film producers say the immediate nature of the cuts would not only hurt Ontario’s reputation and competitiveness in the industry for foreign productions – but it would also harm domestic projects.
A statement from Culture Minister Michael Coteau says the budget bill will be amended to provide a “transition period” to ensure producers who made a significant commitment to Ontario before the introduction of the budget – would receive the tax credit rates they expected.