Quebec increases tax credits from 20 % to 25 %
December 20, 2007 – The Quebec government announced today that it has increased its film and television production services tax credit from 20% to 25%. The new effective rate, when combined with the ground-down 16% Federal tax credit, is 37% of qualifying labour. The 25% credit will be available on labour incurred from December 21, 2007 onwards.
Quebec also announced that improvements have been made to its 20% visual effects tax credit bonus.
To read the Finance ministry's Information Bulletin, seehttp://www.finances.gouv.qc.ca/documents/bulletins/en/BULEN_2007-10-a-b.pdf
Ontario announces increase to its film tax credit rates
December 13, 2007 - Ontario's Finance Minister announced plans today to increase the rate for the Ontario Film and Television Tax Credit from 30% to 35%, and for the Ontario Production Services Tax Credit from 18% to 25%, stating that the Ontario government is committed to "lending further support to this burgeoning sector of our economy."
The new rates will apply on all qualifying labour expenditures incurred from December 31, 2007 onwards.
The announcement came as great news to Ontario’s film industry and it’s a sign that the Ontario government is prepared to deliver on its campaign promise of $50 million per year dedicated to the screen-based sector.
To read the Minister's fall economic statement:
http://www.fin.gov.on.ca/english/budget/fallstatement/2007/07fs-statement.htm
Janyk gets first win in Aspen downhill
Janyk raced down the Ruthie's Run course in one minute 14.17 seconds for her
first World Cup victory, becoming the first Canadian woman to capture a World
Cup downhill title since Kate Pace-Lindsay won in 1993.
CFC and EP Canada are proud to support Britt and join in her victory celebration !!
Read the full story here
RAINMAKER POST AND RAINMAKER VISUAL EFFECTS TO BE ACQUIRED BY DELUXE
November 29, 2007 - RAINMAKER ANIMATION REMAINS A RAINMAKER ENTERTAINMENT COMPANY
Rainmaker Income Fund (“Rainmaker”) (TSX: RNK-un) announced today that it has entered into a definitive agreement to sell two divisions of its wholly owned subsidiary Rainmaker Entertainment Inc. to Deluxe Entertainment Services Group Inc. (“Deluxe”). The purchase by Deluxe will include Vancouver-based Rainmaker Visual Effects and Rainmaker Post, and Rainmaker’s London, England, visual effects facility. It will not include the Rainmaker Animation division based in Vancouver.
Rainmaker, an award winning pioneer with a 28-year history in the Canadian post production services industry, is an industry leader and the largest visual effects and animation company in Canada. The sale to Deluxe will allow Rainmaker Entertainment to concentrate solely on CG animation and content ownership. Rainmaker is in production on Escape From Planet Earth, a theatrical feature film for The Weinstein Company and in development on a 3D stereoscopic feature film trilogy based on ReBoot, Rainmaker’s classic television series.
Deluxe, the leading provider of a broad range of entertainment services and technologies to the film industry, has been strategically adding to its slate of companies worldwide. Extending its laboratory, post production and visual effects capabilities to Vancouver and expanding to high-end visual effects resources in London, is the next logical step in Deluxe’s full-service offerings to customers throughout the global entertainment industry. With its many long-standing customer relationships, the acquisition of Rainmaker is ideally suited for Deluxe to better serve its client base in Vancouver and London.
”Rainmaker is a perfect fit for Deluxe. This acquisition will only enhance the stature of the industry in Vancouver,” says Warren Franklin, CEO of Rainmaker. “The completion of the sale to Deluxe will allow Rainmaker Entertainment to fully focus on becoming a world leader in computer animated films and to accelerate the development of its own film properties. Vancouver, with its strong talent pool, excellent training facilities and robust industry incentives is poised to be at the forefront of digital technology and creative growth.”
“We are excited to be acquiring one of Canada’s leading postproduction facilities. Entering the Vancouver market is a natural extension for us and who better to do it with than Rainmaker,” said Cyril Drabinsky, CEO and President of Deluxe. “Clients shooting in Vancouver will now have the choice of processing or digitizing their dailies locally with Deluxe before completing their projects through any one of Deluxe’s film and digital finishing facilities worldwide,” adds Drabinsky.
Completion of the acquisition by Deluxe is subject to the approval of Heritage Canada and to other customary conditions. The transaction is expected to be completed on December 31, 2007.
About Rainmaker Entertainment Inc.
Rainmaker, headquartered in Vancouver, Canada, is an award-winning visual effects, 3D animation and post-production company with a 28 year history of technical excellence and outstanding service in feature films, television, games and commercials. From its origins in the pioneering west coast post house Gastown Productions, Rainmaker has grown into one of North America’s pre-eminent post-production service providers. Rainmaker has three divisions -- Rainmaker Animation, Rainmaker Visual Effects and Rainmaker Post. Rainmaker also operates a facility in London -- Rainmaker Animation & Visual Effects UK Ltd. (Rainmaker UK).
www.rainmaker.com
About Rainmaker Entertainment Inc.
Deluxe Entertainment Services Group Inc., a wholly-owned subsidiary of MacAndrews & Forbes Holdings Inc., is the leading provider of a broad range of entertainment industry services and technologies to major Hollywood Studios and an international client base. Services include motion picture film processing, printing and distribution; EFILM digital intermediates; post production and subtitling services; titles design and digital VFX; DVD compression, encoding and authoring; digital cinema services, digital asset management, digital distribution; and marketing fulfillment services. Deluxe facilities include: Los Angeles, Toronto, London, Rome, Florence, Madrid, Barcelona, and coming soon, New York. For more information, please visit www.bydeluxe.com
Additional information regarding the proposed sale transaction and other publicly filed documents relating to the Fund, including the interim financial statements and management discussion and analysis are available through the internet on the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (“SEDAR”), which can be accessed at www.sedar.com.
The Fund is an unincorporated open-ended limited purpose trust located in Vancouver, British Columbia. The Fund indirectly owns 100% of Rainmaker Entertainment Inc. (“REI”), EP Canada Limited Partnership (“EP”) and Canada Film Capital Limited Partnership (“CFC”). REI is an award-winning computer generated animation company providing superior service, innovative technology and world-class talent to produce animated feature films, television, direct to DVD, games and commercials. EP is a leading provider of payroll services for the film and television industry across Canada. CFC provides tax credit administration services and financing of tax credits through factoring for film and television productions across Canada.
This press release and any related attachments may contain forward-looking statements that involve a number of risks and uncertainty. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are difficulties, delays or the inability to obtain the approval of Heritage Canada or the failure of the parties to satisfy customary closing conditions, market and general economic conditions and the risk factors detailed from time to time in the periodic reports and documents filed by the Fund with The Toronto Stock Exchange and other regulatory authorities. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and the Fund undertakes no obligation to update the forward-looking statements should there be a change in conditions, or in management’s estimates or opinions.
The contents of this press release have neither been approved nor disapproved by any regulatory authority.
Media Contacts:
Rita Cahill
Ellen Pasternack
604-874-8700
pr@rainmaker.com
BC Announces planned extension of tax credits
The Province intends to extend British Columbia’s successful film tax credits for an additional five years to 2013, Premier Gordon Campbell announced today at a celebration to proclaim Motion Picture Industry Week in B.C.
“The motion picture industry has become a significant part of British Columbia’s economic, artistic and cultural identity, directly employing 20,000 British Columbians and generating $1.2 billion in production expenditures last year,” said Premier Campbell. “Our film tax credits ensure B.C. remains competitive in maintaining the tremendous activity we have seen in this sector. In the upcoming budget, we’ll ask the legislature to extend those credits for an additional five years to help ensure B.C. remains top of mind with producers.”
The tax credits were set to expire in 2008 and the decision to seek an extension to 2013 was made following the Ministry of Finance’s 2007 Film Tax Credit Review. The review involved consultations with domestic and foreign film producers and British Columbia Film.
“An extension was widely supported by industry representatives, who reported the program increased employment and stimulated growth of the industry in British Columbia,” said Finance Minister Carole Taylor. “By announcing our intentions now, we send a clear message that we want British Columbia to remain a location of choice for film and television production.”
Nova Scotia ups tax credit
September 13, 2007 – The 27th Annual Atlantic Film Festival opened with good news for the local industry when Nova Scotia’s Premier announced an increase to the provincial tax credit. The Nova Scotia Film Industry Tax Credit will now be 50% of eligible labour costs, up from 35%.
Also, for films shot outside Halifax in rural Nova Scotia, producers will now get an additional 10% bonus, up from 5%.
As before, producers also receive a frequent filming bonus of 5% for shooting at least three films in a two-year period in the province. This means there is potential to receive a film tax credit of up to 65%, if both the rural and frequent filming bonus requirements are met. "Nova Scotia will have the most aggressive film tax credit in the country," Premier MacDonald said during his announcement at the Festival.
The tax credit increase will be effective for productions starting principal photography after October 1, 2007.
To see the full news release from the Premier’s Office, please go to https://www.gov.ns.ca/news/details.asp?id=20070913008 .
Toronto plans for screen industry growth
September 4, 2007 – The City of Toronto’s Executive Committee announced its adoption of a new Strategic Plan for Toronto’s Screen-based Industry. The strategic plan, developed with the participation of the Toronto Film Board, the Toronto Film Commissioner’s office, as well as several industry associations and key players, aims to address the decline in Toronto-based screen productions since 2000.
In response to intense foreign and domestic competition and the rising Canadian dollar, the plan focuses on the development of platforms, formats, production methods and distribution systems that align with the digital age.
Other key strategic recommendations include: using planning tools and incentives to lure dedicated studio developments on the City’s downtown former industrial lands; advocating for success-based policies and programs from other orders of government; promoting Toronto world-wide as the best location for purpose-built, state-of-the-next-art studios; and, forming partnerships and forums to accelerate understanding and integration of the traditional and new media arenas.
To review the entire document, please go to www.toronto.ca/tfto/strategy.
Union of BC Performers (UBCP) ratifies BC Master Agreement
June 5, 2007 - The Union of B.C. Performers (UBCP) ratified the new British Columbia Master Production Agreement (BCMPA) negotiated with the Canadian Affiliates of the Alliance of Motion Picture and Television Producers (AMPTP) and the B.C. Producers’ Branch of the Canadian Film and Television Production Association (CFTPA) voting 96% in favour of the new agreement.
The new Agreement provides for an increase in minimum fees of 3% per year, over the term of the agreement, in addition to an increase to the maximum contribution to insurance from $3,000 to $5,000. The fee for Background Performers will increase from $9.50 to $10.00 per hour.
New language is included to address the current and emerging technologies of New Media. Also included are terms for Reality and Lifestyle Programming and an appendix for B.C. Independent Low Budget productions.
For further information pertaining to the contract please contact Richard Walker at EP Canada.
ACTRA and CFTPA reach a new agreement
February 21, 2007 - An agreement was reached on Wednesday February 21th, 2007 on a new Independent Producers Agreement (IPA)
Key elements of the agreement:
- Producers have agreed to ACTRA's wage proposal. Performers will receive
a 10% increase in compensation over the new agreement's three-year
term.
- Performers will be compensated for the use of their work on the
internet. Producers will share 3.6% of revenues received from the use
of productions on the internet, tracked separately. The parties agreed
on how producers will compensate performers appearing in productions
specifically produced for the internet. An agreed provision will allow
certain producers to accumulate use fee payments until a "re-opener"
two years from now.
- Producers and ACTRA have reached agreement on a number of important
improvements to work rules on set, including improved language
governing equal opportunities for employment, harassment, rules
governing child performers, and working conditions on set.
- Incentives provided in the agreement to encourage low-budget, 100%
Canadian independent production were updated. Budget thresholds to
qualify for these incentives and other terms were brought up to date.
- Rules governing the number of background performers were nationally
harmonized, providing more of a level playing field in this area
between Toronto, Montreal and Vancouver. Under the new rules producers
working under the IPA in major centres will hire 25 background
performers for large-budget features, and 20 for most other
productions.
- The agreement sets out new terms for "reality" programming. The new
terms make it clearer which performers in such shows are included in
rates and terms; sets up a fee system geared to the way reality shows
are produced; and provides a uniform use fee appropriate to this type
of production.
The three-year agreement is subject to ratification, however the agreed-upon rates take
effect immediately.
Ontario announces extension of its production services tax credit program
February 2007 - On February 22, 2007 the Ministry of Finance and the Ministry of Culture jointly announced that Ontario is extending its enhanced 18% rate for the Production Services Tax Credit program until March 31, 2008.
The tax credit extension was announced to signal the Ontario government’s continuing commitment to the film industry, and to ensure that Ontario can remain competitive in the marketplace both nationally and internationally.
For further information please contact David Carter or Rob Dobier at 416-923-9255.
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