POLITICS

Saskatchewan filmmakers not happy with province's new non-refundable tax credit

05/08/2012 10:09 EDT | Updated 07/08/2012 05:12 EDT
REGINA - Filmmakers in Saskatchewan have once again taken to YouTube to explain why they are not happy with a new tax offer from the provincial government.

The Saskatchewan Media Production Industry Association released a YouTube video reaction to the province's implementation of a non-refundable film tax credit last week.

It replaces an employment tax credit that was cut in the provincial budget and would offer a 25 per cent non-refundable credit on production expenses to recognize the extra cost of buying and using goods and services in Saskatchewan.

There would also be bonuses for copyright and intellectual ownership, as well as for work done in and using workers from Saskatchewan.

The YouTube video claims a film with a $7 milliion budget made in Saskatchewan by a small business would need to make $85 million to receive the tax credit.

Kevin DeWalt of Minds Eye Entertainment says the alternative program might work in other industries like potatsh or oil and gas, but won't work for film.

"If you're a small business and you're only paying two per cent or three per cent corporate taxes in Saskatchewan, for a million dollar tax credit you'd have to make a profit of around $20 million or $25 million for the production company to access that tax credit," he said.

(CJME)