NDP would reinstate Nova Scotia film tax credit, programs cut in 2015

HALIFAX — New Democrats in Nova Scotia are promising to reinstate a film tax credit axed by the Liberal government, NDP Leader Gary Burrill pledged Friday, saying the government’s move left the industry “decimated.”

Burrill, campaigning for the May 30 provincial election, said an NDP government would offer the film industry a $23-million yearly film tax credit, with an additional $10 million in the first year.

He said the extra funding would stabilize an industry that struggled to cope following the cuts that came with the 2015 provincial budget.

“This was, in 2015, heartbreaking,” Burrill told a news conference at the Halifax offices of a video game developer. “We are committing ourselves to being an active and a reliable partner in the rebuilding … of this beautiful industry.”

Burrill said reviving the tax credit would ensure the film industry’s future by attracting productions and providing work for local film crews.

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He said the NDP would also work with the industry to improve existing arts programs and create new ones.

Premier Stephen McNeil’s contentious move to cut the lucrative film tax credit — a refundable credit for labour costs directly related to the production of films in the province — drew ire from the industry and a range of prominent actors, including William Shatner and the Trailer Park Boys.

The tax credit was replaced by an incentive fund that provides base funding that is 25 per cent refundable for all production costs, including labour.

Several boisterous protests were held at the provincial legislature, including one that drew more than 2,000 people.

As well, the provincial government held a series of negotiations with industry leaders to improve the fund.

Last month, McNeil’s government tabled a budget that set the annual fund at $16.9 million.

On Friday, McNeil said the fund goes further than subsidizing labour by spreading the money across the entire industry.

“We’ve seen a lot of activity under that fund,” McNeil said while campaigning in Halifax on Friday.

“There was a lot of money being spent and no one knew where it was going, in a sense, because it was a tax credit. This way, it’s open and transparent.”

Last year, Screen Nova Scotia touted the industry’s economic value with a commissioned study by Price WaterhouseCoopers that estimated a contribution to the provincial GDP of $180 million in 2014, when the government provided $24 million in funding through the former tax credit.

The study estimated the industry directly supported 1,600 full-time equivalent jobs in 2014, with an average salary of $43,000.

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Aly Thomson, The Canadian Press