The 'New' Saskatchewan Film/TV/Digital Tax Credit & Why It Doesn't Work
On Friday, May 4th, our Government announced a new incentive program for the Saskatchewan film and digital media industry.
Rather than a refundable program--which is the industry standard—
and what we in Saskatchewan proposed—this new incentive,
offered by the provincial government, is a non-refundable tax program—which quite frankly doesn't work.
Here's an example using a film made entirely in Saskatchewan—
Lets say the total budget is 7 million dollars
and $5 million of that is spent right here in our province.
Under the new Government program,
for a company owned and operated solely in Saskatchewan,
the average benefit would be 34 percent.
In our example, that would be $1.7 million dollars in tax credits.
BUT, at the small business tax rate, a company would have to make a profit of $85 million in order to get that credit.
Can anyone name any small business in any Saskatchewan industry
that makes that kind of profit?
It's a program without a solid business model.
Let's do good business together. That way we all benefit.
Having a non-refundable tax credit program
is like having a car without a motor—
We need your help to set the record straight. So share this any way you can—on twitter, on Facebook. Tell your friends, tell your neighbours and contact your MLA.