Nordicity study analyses the economic impact of federal film and video tax credit

Ottawa – September 2008 – The federal Department of Canadian Heritage has released a study prepared by Nordicity entitled “Economic Analysis of the Canadian Film or Video Production Tax Credit.”

This Nordicity study was a key component of the federal government’s evaluation of the Canadian Film or Video Production Tax Credit (CPTC).

The CPTC provides over $180 million in financial support, annually, to the production of Canadian films and television programs. Between 1994/95 and 2005/06, the federal government provided more than $1.6 billion in financial assistance to 9,754 film or television projects, supporting $17.3 billion in production activity.

The Nordicity study examined whether or not the CPTC led to an incremental increase in Canadian film and television production. To address this question, Nordicity developed an econometric model to measure how levels of private financing for Canadian film and television production responded to an increase in the CPTC assistance. The results of this analysis indicated that the CPTC did indeed lead to higher levels of production activity.

The Nordicity study also used data from a survey of Canadian film and television producers to examine the impact that the CPTC had on various aspects of corporate development and financing stability at Canadian production companies.

A copy of the study can be downloaded from the Department of Canadian Heritage’s web site: http://www.pch.gc.ca/pgm/em-cr/evaltn/2008/2008-10-2/EA%20CPTC%20E.pdf

For more information:

Dustin Chodorowicz

CANADA: + 1 613 234 9429

For more information on Nordicity Group Ltd.:

www.nordicity.com