This is awesome news! For Canadians.
Not only is production here in California dwindling to a screeching halt (Thanks Gov. Schwarzenegger for doing nothing about keeping productions here in CA!) but now that the Canadian dollar is down the toilet, producers are heading back to Hollywood North.
Canadian currency is tumbling in value versus the U.S. dollar, and that is a decidedly good thing for firms hoping to lure film and TV projects north of the border, local industry executives say.
A strengthened Canadian dollar since 2006 forced many U.S. producers to steer their projects away from Canada — dubbed Hollywood North during the go-go 1990s — to southern U.S. states with their own generous tax credits.
Canada’s appeal was undercut even further in 2008 when New York tripled its tax credit on below-the-line expenses to 30% and began to offer TV series and movies filmed in New York City a 5% bonus.
That move effectively knocked Hollywood production hubs such as Toronto and Montreal out of the running when it came to luring Los Angeles producers away from rival locales like Michigan, Louisiana and New Mexico.
But with recent market turmoil sending the loonie down in value, Canada is back on the radar of Hollywood bean counters, Bronfman said.
“If you do the math, with the (Canadian) dollar below 80 cents, that’s a 20% bonus. Combine that with our federal and provincial tax credits, and we’re back to a level playing field with New York State,” he said.