The Artful Writer on Runaway Production
Craig Mazin is in Vancouver for the production of his script for Scary Movie Whore Four.
In order to draw production to Canada, along with the jobs and local spending that production brings, the Canadian government and most (if not all) of the Provinces provide tax rebates to filmmakers. The basic idea is that a production must employ a certain amount of Canadian labor. Those laborers will pay taxes on their income, which goes to the Province and Ottawa. In turn, the governments will then rebate the productions a percentage of that tax collected (I’m simplifying, but this is the general idea).The upshot is that for every job a production gives to a Canadian, they’re going to get some cash back.
So…what’s this all really worth? After all, there are additional costs inherent to shooting in Canada. Key personnel must be flown up to Vancouver and housed…and then there are those per diem checks to be handed out as well. The advantages must outweigh the costs by a significant amount.
They do.
For an average studio picture that costs about 52 million dollars to shoot in L.A., you’d probably spend about 40 million to make that same picture in Vancouver.
--The Artful Writer: Runaway Production...And Why It Happens
Certain states in the US also offer tax breaks. New York just passed one, but it only applies to big-budget projects. For indie films, I've heard good things about New Mexico. They have no upper or lower limit on their credits. Here in Washington, Rain in the Mountains is supposed to be exempt from taxes on goods related to making the movie. The producers've had a hell of a time convincing businesses of this, though. Lessons: shop around for the best deal and have the proper documentation at all times.

