B.C. Film & TV Tax Credits in 2026: A Practical Guide to FIBC, PSTC and Bonus Credits

Ask any line producer why so many series, features and animated projects base themselves in Vancouver and you will hear the same three answers: world-class crews, every look within a few hours' drive, and a stable, predictable tax credit system. This guide focuses on the third answer. It explains — in plain English — how British Columbia's film and television tax credits work in 2026, who administers them, how the bonus credits stack, and why a business that supplies productions should understand them as well as any producer.

We have written this for producers new to B.C., for production accountants who want a quick refresher, and for local business owners who want to understand why productions make the purchasing decisions they do. It is not tax advice; credits are complex and change through provincial budgets, so always confirm details with Creative BC, the Canada Revenue Agency and a qualified production accountant before you rely on them.

The big picture: two base credits, many bonuses

British Columbia offers two refundable base credits for film and television. Which one a production claims depends mainly on who owns the copyright and whether the project qualifies as Canadian content.

• Film Incentive BC (FIBC) supports domestic, Canadian-content productions — typically projects that are certified Canadian by the federal Canadian Audio-Visual Certification Office (CAVCO) and controlled by a Canadian, B.C.-based production company.
• Production Services Tax Credit (PSTC) supports productions that do not need to meet Canadian-content rules — most notably the international studio and streamer series and features that make up much of Vancouver's production volume. The claimant is usually a B.C. service company engaged by the foreign rights holder.

In its 2025 budget, the Province announced increases to both credits for productions with principal photography starting on or after January 1, 2025. FIBC moved from 35% to 36%, and PSTC jumped from 28% to 36%. For the first time in many years, domestic and service productions are now earning the same base rate on qualifying B.C. labour. The Province framed the change as a response to a difficult period for the industry, which saw production volumes fall after the 2023 strikes in Hollywood and a broader global slowdown.

How the credits are calculated

The mechanics differ in detail between FIBC and PSTC, but the logic is similar. A production tracks every dollar of qualifying B.C. labour it spends, subtracts any assistance that must be deducted (such as certain government grants), and applies the credit rate. The result is a refundable credit: if the production company owes less tax than the credit is worth — as most single-purpose production companies do — the difference is paid out as a refund after the claim is assessed.

What counts as eligible labour?

In broad terms, eligible labour includes salaries and wages paid to individuals who were B.C. residents at the end of the calendar year before the year in which principal photography began, plus remuneration paid to B.C.-based corporations for the services of their B.C.-resident employees. This residency test is one reason productions are careful about the paperwork for every crew member and why vendor forms ask about where you and your staff live.

Why the "labour inside a contract" matters to suppliers

Say your company provides a crew of three set medics. The production pays your invoice, but because that invoice is mostly for the services of B.C. residents, the labour portion may be eligible for the credit. Productions and their accountants therefore value suppliers who can clearly break out labour costs on invoices. If you can provide a simple labour/materials split on request, you are making the production's tax credit claim easier — and that is a genuine competitive advantage.

The bonus credits that stack on top

The base credit is only the start. Both FIBC and PSTC can be combined with additional credits designed to spread production activity around the province and support specific skills. According to the Province, the stackable credits support:

• Regional and distant locations. Extra credits for labour associated with shooting outside the Lower Mainland. The regional credit rewards filming outside the designated Vancouver area, and the distant location credit adds further support for shooting in more remote parts of B.C. The Province has also said it intends to restore regional and distant location credits for animation companies with a bricks-and-mortar presence outside Metro Vancouver, the Fraser Valley and Whistler/Squamish.
• B.C. screenwriters. A credit available to domestic productions that hire B.C. screenwriters, encouraging home-grown writing talent.
• Digital animation, visual effects and post-production (DAVE). An additional credit on labour directly attributable to digital animation, visual effects and certain post-production work done in B.C.
• Training. A credit tied to approved training programs, rewarding productions that bring trainees and apprentices onto their crews.

Stacking is where the real competitiveness lies. A service production shooting partly in the Okanagan or the Kootenays, with significant VFX done by a Vancouver studio, can layer several credits on the same project. That is why productions are actively interested in regional suppliers: a caterer in Kamloops or a picture-car provider in Nanaimo is not just convenient for a location shoot — they are part of the production's regional strategy.

Don't forget the federal layer

Provincial credits sit alongside federal ones. Canadian-content productions can claim the federal Canadian Film or Video Production Tax Credit (CPTC), while service productions typically claim the federal Film or Video Production Services Tax Credit (PSTC). Both are administered by CAVCO and the Canada Revenue Agency. In practice, the combined federal and provincial support is what productions compare when choosing between jurisdictions — and because the B.C. rate is now the same for service and domestic projects, the province's offer is simpler to explain than ever.

The process, step by step

Creative BC administers the provincial credits on behalf of the Province, issuing eligibility and completion certificates, while the Canada Revenue Agency processes the claims as part of the production company's corporate tax return. A simplified version of the process looks like this:

1. Set up the right corporate structure. Most productions use a single-purpose B.C. production company or engage an established B.C. service company.
2. Apply for an eligibility certificate through Creative BC early in production for FIBC; service productions follow the accreditation process for PSTC.
3. Track everything. Payroll services and production accountants code labour by residency and department from day one.
4. Apply for the completion certificate once the production is finished, with audited cost reports where required.
5. File the claim with the production company's T2 corporate tax return, including the relevant schedules for each credit.
6. Receive the refund after CRA review — which is why many productions arrange interim financing against the expected credit.

A tax credit is only as good as the paperwork that supports it. The productions that get paid quickly are the ones that treated documentation as a department, not an afterthought.

What this means for B.C. suppliers

If you run a business that sells to productions — from generator rentals to dry cleaning — the credit structure explains a lot about how your customers behave.

• Local beats imported. Every dollar of B.C. labour is worth more to a production than the same dollar paid outside the province. Emphasise that your team is local.
• Clear invoices win repeat work. Itemise labour and materials, include your GST number, reference the production's PO number, and invoice promptly.
• Regional businesses have a new edge. If you are outside the Lower Mainland, market yourself directly to productions planning regional shoots. Location managers and production managers want local partners who know the area.
• Training partnerships stand out. If you take on apprentices or trainees, say so. It aligns with what productions are rewarded for.

Our supplier's playbook covers how to present your business to production offices, and the BC Directory shows the departments productions search most often. If you want help becoming "film-ready", our Production-Ready Vendor Onboarding service walks you through rate cards, insurance certificates and vendor paperwork.

Common mistakes to avoid

• Assuming every expense qualifies. Only eligible labour forms the base of the B.C. credits. Budget accordingly.
• Missing residency documentation. Collect residency declarations from every crew member and supplier at onboarding.
• Forgetting deductions for assistance. Some forms of government or third-party assistance reduce eligible expenditures.
• Leaving regional planning too late. Regional and distant location credits depend on where days are actually shot — schedule with them in mind.
• Relying on old rates. Rates changed for productions starting principal photography on or after January 1, 2025. Make sure templates and budgets reflect current figures.

Frequently asked questions

Is the B.C. film tax credit refundable?

Yes. Both FIBC and PSTC are refundable, meaning a production company can receive the value of the credit even if it owes little or no tax.

Can a foreign studio claim the B.C. credit?

Foreign-owned productions generally access the PSTC through a B.C. production services company, which is the claimant. The PSTC does not require Canadian content.

Does the credit apply to equipment rentals?

Equipment rental fees are not eligible labour in themselves. However, the labour of B.C.-resident technicians supplied with equipment may qualify, which is why itemised invoices matter.

Where can I check the latest rules?

Start with Creative BC's tax credit pages and the Government of British Columbia's budget documents, then consult a production accountant. Rules and rates can change with each provincial budget.

Sources and further reading

• Government of British Columbia news release on film and television tax credit increases (Budget 2025) — news.gov.bc.ca
• B.C. Budget 2025 backgrounder — bcbudget.gov.bc.ca
• Creative BC — tax credit administration and guidelines — creativebc.com
• Canadian Audio-Visual Certification Office (CAVCO) — canada.ca

This article is general information, not tax, legal or accounting advice. See our disclaimer.