New Budget Increases and Strengthens Economic Development Tools for the Quebec Audiovisual Industry
Montreal, March 30, 2017 - The QFTC applauds new measures in the 2017-2018 provincial budget announced by Carlos Leitão, Quebec Minister of Finance, which are aimed at supporting the audiovisual industry.
Eligibility of Virtual and Augmented Reality Content for Film or Television Production Services Tax Credit
Taken directly from its action plan and the result of a one-year undertaking by the QFTC, the confirmation to tax incentives for virtual and augmented reality content will promote growth for Quebec businesses, which have already garnered international recognition for their exceptional creativity. The QFTC intends to maintain its involvement in the coming year by organizing trade missions and inviting international clients to Quebec. The QFTC’s long-term objective is to create a centre of excellence in Quebec, similar to the one presently in place for the visual effects, animation and video game sectors.
Reduction of the Minimum Budget Allowance for Production Services Tax Credit
Among the notable measures announced is the reduction of the minimum budget to be eligible for the production services tax credit. In order to benefit from the 20% basic rate applicable to all eligible production costs, a production must now have a minimum budget of $250,000 for a single work or for an entire series or miniseries, regardless of run time. This condition also applies to the virtual and augmented reality sector.
Implementation of a Pilot Project to Develop Soundtrack Recording
Conducted in collaboration with partners from the music industry, the project to produce music recordings intended for audiovisual production in Quebec will improve the local industry offer, which currently includes infrastructure for filming and the creation of visual effects, and gives the province a privileged competitive position on the North American market.
This initiative will help create jobs that do not currently exist in Quebec. For composers, musicians and the technical workforce that will revolve around this activity, it is an unprecedented opportunity to instigate the development of new employment vocations from a talent base that is already recognized internationally.
“These measures are the culmination of a lengthy process undertaken by the QFTC in collaboration with key industry players for over a year, in particular in the sound recording and virtual / augmented reality sectors. We are now the first to propose tax incentives specifically put in place for VR/AR, a sector that is rapidly expanding. The introduction of these measures will have a major impact on the entire industry,” noted Pierre Moreau, CEO of the QFTC.
“The Council is proud of the leadership that was demonstrated throughout the development of these measures and welcomes their implementation by the Government of Quebec. The Quebec audiovisual industry will now be able to continue its growth and increase its popularity, both in Quebec and internationally. Thank you and congratulations to the teams that worked tirelessly to successfully finalize these jobs-creating portfolios,” added Pierre Moreau.
Additional Measures Announced in the Budget Will Strengthen the Development of Quebec Intellectual Property and Productions
The new budget also includes various measures that improve the tax credit for Quebec film and television production:
- An increase from 8% to 16%in the enhancement for productions with no public financial assistance and its adjustment according to the level of public assistance.
- An increase from 8% to 10% in the rate of enhancement for computer-aided special effects and animation.
- An increase from 8% to 10% and from 16% to 20% in the regional improvement rates, depending on the type of production.
In particular, these measures will help support the production of Quebec animation, which has the capacity to reach a wider audience and is exportable.
To view the complete budget document, click here.
About the QFTC
The Quebec Film and Television Council (QFTC) is a non-profit organization that contributes to the development and competitiveness of Quebec as a world-class multi-screen production centre. As an economic development agency, its mission is to generate investment in Quebec by relying on competitive tax incentive programs, the expertise of industry members, architectural diversity, the quality of infrastructure and the industry’s ability to export its products to foreign markets.
The QFTC receives support from its "Prestige" Partners: National Bank, Iatse 514, Technicolor, Miller Thomson, Raymond Chabot Grant Thornton, Hôtel William Gray, Intercontinental, le Ritz Carlton, Corporate Stays hotels, Loews Hôtel Vogue and Hôtel Gault/Monville as well as assistance from various federal, provincial and municipal governmental departments. For more details, visit www.qftc.ca.