Eliminate the federal 'grind'

AI summary

Petitioners say Canada's motion picture industry supports more than 181,000 jobs and generates over $10.2 billion in annual production activity, and that federal and provincial production tax incentives help attract international productions. They ask the Government of Canada to amend the federal Production Services Tax Credit to eliminate the 'federal grind'—the adjustment that reduces eligible labour expenditures by the value of provincial production tax assistance—so provincial incentives no longer reduce the federal credit base. The petition includes no government response.

AI summaries describe petitioners’ requests and claims. Consult the official record for the full text.

Official petition

Petition to the Government of Canada Canada's motion picture industry is a significant contributor to the national economy, supporting more than 181,000 jobs and generating over $10.2 billion in annual production activity; Federal and provincial production tax incentives play an important role in attracting international film and television investment, supporting Canadian workers, and sustaining the infrastructure and businesses that serve both international and Canadian productions; The federal Production Services Tax Credit currently reduces eligible labour expenditures by the value of provincial production tax assistance, a mechanism commonly referred to as the federal grind; This interaction reduces the combined value of federal and provincial incentives and weakens Canada's competitiveness against jurisdictions offering increasingly attractive production incentives; Eliminating the federal grind would allow existing federal and provincial incentives to work more effectively together, strengthen Canada's ability to attract and retain globally mobile productions, support Canadian motion picture workers, boost Canadian content development and Canadian businesses; and A targeted modernization of the federal Production Services Tax Credit would help maximize the economic return on existing public investment while supporting Canada's skilled workforce and production capacity. We, the undersigned, citizens and Residents of Canada, call upon the Government of Canada to amend the federal Production Services Tax Credit to eliminate the federal grind, so that provincial production tax incentives no longer reduce the eligible labour expenditure base used to calculate the federal credit.

Government response

No government response is available yet.