Film wars heat up as B.C., California pitch duelling tax credits

Film wars heat up between B.C. and Hollywood California is increasing tax credits for the film industry, putting new pressure on Hollywood North.

The bright lights of Hollywood have lost some of their lustre as the film industry struggles to find its footing in an era of streaming and following a period of extended labour strife.

The slowdown also extends to Hollywood North.

"I would call it a recession in our business,” said Paul Christie, vice-president of talent at The Characters Talent Agency. “The peak I think was after the pandemic in 2021 and 2022. We saw the business turn on and it went crazy.”

California Gov. Gavin Newsom recently fired a shot across the bow of other movie making jurisdictions by promising to more than double the tax credits doled out by his state – increasing them to $750 million.

"This is about jobs. This is about investment,” Newsom said. “And it's about recognizing, in closing, that the world we invented is now competing against us."

Newsom’s pledge comes on the heels of a campaign promise by recently re-elected Premier David Eby to increase B.C.’s film tax credit from 28 per cent to 36 per cent.

"The message to film workers in British Columbia who I know are feeling a lot of the pressures of the big streamers dialing back their budgets and other pressures facing the industry, is that we're in your corner,” Eby said.

An estimated 45,000 people work in the B.C. film industry – but with only 30 movies and TV shows in production locally right now, they’re not all on the job.

Gustavson School of Business Prof. Mark Colgate told CTV News he expects many of those folks to be back on set sooner rather than later – and not just because of tax credits.

"Obviously, the Canadian dollar at the moment is very weak against the U.S. dollar. It makes it much more affordable to come to B.C. to make a movie right now,” Colgate said. “And we've got to harness that over the next few years while we still have that in our favour."

As the industry looks to rebound globally, insiders say B.C. remains in a strong position to benefit.

"B.C. is one of the best places in the world to make movies and we're really good at it,” said Christie, who expects to see many more opportunities for locals in the film industry very soon.