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British Columbia provides provincial tax credits, exemptions
and deductions to encourage business investment and
innovation. Certain incentives target
particular industries (film, mining, new media, and
international financial services). British Columbia’s tax incentives are provided as “entitlements”
– they do not have to be negotiated – and are available equally
to all eligible
businesses for qualifying activities. Federal government
incentives are also available that in many cases mirror
provincial measures.
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| R&D Tax Credits (Provincial and Federal) |
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- 10% non-refundable BC income tax credit for eligible expenditures
on qualified R&D
- 20% non-refundable federal income tax credit for eligible
expenditures on qualified R&D. Eligible expenditures: salaries and
wages, materials, supplies, overheads and capital equipment
used directly in qualified R&D
activities
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| R&D Tax Deductions (Provincial and Federal) |
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- 100% immediate deduction of eligible R&D expenditures (see above) to reduce BC and federal taxable income
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| Sales Tax Exemptions (Provincial) |
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- Purchase of eligible machinery and equipment is exempted
from BC sales tax
- Eligible expenditures: machinery and equipment used
in manufacturing, software development, mining and mineral exploration,
petroleum and natural gas production, and logging
- Labour component of construction costs is exempt from BC
sales tax
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| Property Tax Exemptions (Provincial and Local) |
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- Tangible personal property, such as production machinery, business equipment, furniture, and inventories, is exempt from BC provincial and local property taxes
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| Separate Class Election for Depreciating Machinery and Equipment
(Provincial and Federal) |
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- Companies may elect to put individual capital assets in separate
classes for income tax depreciation purposes instead of pooling them
into broad classes established for claiming Capital Cost Allowances
(the benefit
is accelerated realization of “terminal losses” when disposing
of specific assets having a short economic life)
- Eligible assets: Production
machinery and equipment, computer equipment,
and telecom equipment
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| Mining Exploration Tax Credit (Provincial) |
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- 20% refundable provincial income tax credit for “grassroots”
mineral exploration in BC
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| International Financial Business Tax Refund (Provincial) |
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- Refund of provincial corporate
income tax paid by eligible companies on earnings from
international financial services performed within British Columbia
- Refund of provincial personal income tax paid by specialists
from outside of Canada working in British Columbia's international
financial sector
- Eligible companies
and employees
are required to register under the BC International Financial
Business (Tax Refund) Act
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| Film Production Tax Credits (Provincial and Federal) |
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Provincial
Film and Television Tax Credit
Program (BC controlled production companies*)
- Basic Credit (30%
of eligible labour costs)
- Regional Credit (12.5% prorated labour
costs for photography outside of Metro Vancouver
- Training Credit
(lesser of 15% of trainee salaries or 3% of eligible labour
costs)
- Digital
Animation or Visual Effects Credit (15% of eligible labour
costs)
*International treaty co-productions may be eligible
Production Services
Tax Credit Program (available to non-BC controlled production companies)
- Production
Services Credit (18% of eligible labour costs)
- Regional Credit (6%
prorated labour costs for photography outside of Metro
Vancouver)
- Digital
Animation or Visual Effects Credit (15% of eligible labour
costs)
Federal
Canadian Film or Video Production Tax Credit (Canadian controlled production
companies*)
- 25% of qualified labour costs for an eligible Canadian production
*International
treaty co-productions may be eligible
Film or Video Production
Services Tax Credit (available to non-Canadian controlled production
companies)
- 11% of qualified labour costs for an eligible production
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| New Media Tax Credit (Provincial) |
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- 30% non-refundable provincial income tax credit for venture capital corporations investing in an eligible new media business
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