BC Production Services Tax Credit: What Counts as a Distant Location?

BC Production Services Tax Credit: What Counts as a Distant Location?

If you’re planning to film outside Metro Vancouver, the BC Production Services Tax Credit distant location rules can make a real difference to your budget. British Columbia offers an extra refundable tax credit when principal photography happens in approved “distant locations.” The challenge is knowing exactly which places qualify — and which ones don’t.

Under the Distant Location Production Services Tax Credit (DL PSTC), eligible productions can claim an additional 6% refundable credit on qualified B.C. labour costs when filming outside the designated Vancouver-area zone.

---

What Is the Distant Location Production Services Tax Credit?

The Distant Location Production Services Tax Credit is an enhancement to the BC Production Services Tax Credit (PSTC). It rewards productions that bring jobs and spending to regions outside the Lower Mainland’s core filming corridor.

Key facts:

• It is a refundable corporate income tax credit
• It applies only to qualified B.C. labour expenditures
• It is available to Canadian and foreign-owned productions
• There is no Canadian content requirement

To qualify, your production must already be eligible for the BC Production Services Tax Credit and complete principal photography in a location that meets the “distant” definition.

---

What Counts as a “Distant Location” in B.C.?

A distant location is any part of British Columbia that is outside the prescribed Vancouver-area zone.

The excluded zone (not distant)

Filming in the following areas does not qualify as distant location production:

• City of Vancouver
• City of North Vancouver
• District of North Vancouver
• City of Burnaby
• City of Richmond
• City of New Westminster
• City of Surrey
• City of Coquitlam
• City of Port Coquitlam
• City of Port Moody
• District of West Vancouver
• District of Delta
• City of Langley
• District of Langley
• Village of Anmore
• Village of Belcarra
• Resort Municipality of Whistler
• Any area within 30 kilometres of the City of Hope

If any part of your principal photography takes place inside this zone, that portion of labour spending does not qualify for the distant location credit.

Locations that usually qualify

Filming outside the excluded zone typically counts as a distant location, including:

• Vancouver Island (outside Greater Victoria core areas)
• Interior B.C. (Kelowna, Kamloops, Vernon, Penticton)
• Northern B.C. (Prince George, Terrace, Fort St. John)
• Kootenays and Okanagan
• Sunshine Coast communities outside Metro Vancouver boundaries

Final eligibility is determined based on where principal photography occurs, not where your production office is located.

---

How Much Is the Credit Worth?

If your project qualifies, you can claim:

• 6% of qualified B.C. labour expenditures incurred in a distant location

This credit is:

• Refundable, even if no corporate tax is payable
• Claimed through your T2 corporate income tax return
• Administered by the Canada Revenue Agency, with certification from Creative BC

---

Who Is Eligible?

To claim the BC Production Services Tax Credit distant location supplement, your corporation must:

• Have a permanent establishment in British Columbia
• Primarily carry on a film or video production services business
• Produce an accredited film or video production
• Complete principal photography in a qualifying distant location

You cannot claim this credit if you are claiming the BC Film and Television Tax Credit (BCFTTC) for the same production.

---

Common Mistakes to Avoid

1. Assuming “outside Vancouver” is enough
   Some nearby communities still fall inside the excluded zone. Always confirm municipal boundaries and the 30 km Hope radius.

2. Claiming non-labour expenses
   Only qualified B.C. labour costs are eligible. Travel, hotels, and equipment rentals do not count.

3. Mixing tax credit programs
   You cannot combine the Production Services Tax Credit with the BC Film and Television Tax Credit on the same project.

4. Poor location documentation
   If audited, you must prove where principal photography took place. Call sheets and production reports matter.

---

Frequently Asked Questions

Q: Is the Distant Location Production Services Tax Credit refundable?
Yes. It is a refundable corporate income tax credit, even if your corporation owes no tax.

Q: Do foreign production companies qualify?
Yes. Foreign-owned companies can qualify if they have a permanent establishment in B.C. and meet the business activity requirements.

Q: What expenses qualify for the distant location credit?
Only qualified B.C. labour expenditures related to the production. Non-labour costs are excluded.

Q: Can part of my shoot qualify if only some scenes are filmed in a distant location?
Yes. Only the labour costs tied to principal photography in qualifying distant locations are eligible.

Q: How do I apply for this tax credit?
You apply through your T2 corporate tax return, with accreditation and certification through Creative BC and the CRA.

After the FAQ, it helps to remember that GrantHub tracks active grant and tax credit programs across Canada — check which ones match your business profile.

---

See Also

• How Transferable and Production Tax Credits Work in Canada
• How Canadian Film and Media Companies Use Tax Credits and Coproduction Treaties
• NWT Film Rebate Program: Is Filming in the Northwest Territories Worth It?

---

Next Steps

If you’re planning a shoot outside Metro Vancouver, confirming whether your locations qualify as “distant” should happen early in budgeting. Tools like GrantHub’s eligibility matcher can help you filter programs by province and industry in seconds, so you can see how provincial tax credits fit together before cameras roll.