05/04/2012 05:12 EDT | Updated 07/04/2012 05:12 EDT

Saskatchewan sequel: government proposes new film industry tax credit

REGINA - The Saskatchewan government has a new plan for the province's film industry which balked when an employment tax credit was cut in the provincial budget.

The province is proposing a new tax credit first suggested by the film industry in a meeting this week.

It 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 government calls it a “true tax credit" as it is fully deductible from taxes paid in Saskatchewan.

Under the old credit, companies could be eligible without having paid tax in Saskatchewan.

The plan also acknowledges the industry’s move to digital and calls for more focus on and support for digital movie-making.

The new tax credit could be available by July 1.