For two decades, Metro Vancouver's film and television industry has relied on a consistent competitive formula: a deep talent pool, a favourable exchange rate, and a robust federal-provincial tax credit system that makes shooting in Burnaby more cost-effective than in Atlanta or New York. That formula is now facing pressure from two directions, and the studios, crews, and suppliers who depend on it are watching closely.
Ottawa's spring budget included a formal review of two pillars of Canada's production incentive architecture: the Canadian Film or Video Production Tax Credit (CPTC) and the Film or Video Production Services Tax Credit (PSTC). The review, managed by the Department of Canadian Heritage's CAVCO program, has not yet produced recommendations. However, its inclusion in a budget cycle defined by fiscal restraint has created uncertainty within the industry.
The stakes are significant. Metro Vancouver's screen-based media sector generates an estimated $3 billion or more in annual production spend and supports approximately 35,000 direct and indirect jobs. Much of this activity is concentrated in Burnaby and South Vancouver, where studio campuses anchor commercial real estate demand and sustain networks of local suppliers.
The current federal-provincial incentive stack offers foreign-service productions an effective credit against total production spend of approximately 28 to 35 per cent. This figure is central to the location pitch BC makes to U.S. studios and streaming platforms, which primarily utilize the PSTC. A reduction in these credits would alter the location calculus that attracts foreign-service productions to the province.
The U.S. Competitive Landscape
The timing of Ottawa's review coincides with an aggressive push by American states to recapture production. Georgia, New York, and California have each expanded or enhanced their own production incentives in 2025 and 2026. For U.S. studios planning multi-year slates, the gap between BC and competitive American jurisdictions is narrowing, making uncertainty a distinct disadvantage.
Impact on the Ground
For a grip in Burnaby or a set decorator in East Vancouver, the mechanics of tax credits translate into job security. Foreign-service productions—which comprise the majority of Metro Vancouver's volume—rely on the all-in cost advantage of shooting in Canada. When that advantage shrinks, productions relocate, leading to reduced crew days and wage pressure. The post-pandemic production slowdown of 2023 and 2024 demonstrated how quickly a contraction in foreign-service work affects the sector.
BC's Structural Advantages
Metro Vancouver retains competitive strengths that persist beyond policy reviews. The talent base is deep, and infrastructure—from major studio campuses to a mature post-production ecosystem—represents significant sunk capital. Additionally, the Canadian dollar's persistent discount against the U.S. dollar provides a structural cost advantage.
The Motion Picture Association — Canada maintains that the federal credit stack serves as a competitive tool that returns significant economic activity and tax revenue. The provincial government, through the Ministry of Tourism, Arts, Culture and Sport, operates its own incentive architecture, and Victoria's response to any federal changes will be a critical factor in the industry's future.
Looking Ahead
For studio operators and production companies, the next six to twelve months represent a decision point. While the outcome of the review is not predetermined, the window for industry stakeholders to present their case is open. Metro Vancouver's film industry has proven resilient through past disruptions; the current challenge lies in whether the policy environment will continue to support the region as a premier global production destination.
