Tax Shelter Era/Capital Cost Allowance (CCA)

Date of Fund: 
January 1, 1974
Funding Type: 
Federal Funding

The introduction of the Capital Cost Allowance in 1974, allowing film investors a 100% tax deduction, created a boom in film production in Canada. Between 1974 and 1979, the number of films per year increased from 3 to 66, and the national expenditure ballooned from $1.6 million to $172 million.

To be eligible, productions had to be staffed with predominantly Canadian creative and technical personnel. However, most of the films made during the period lacked the presence or purposeful inclusion of Canadian culture. Though filmed in Canada, the stories were often set in America, with B-list American actors in starring roles. The boom ended by 1982, when the tax rules were changed to reflect a fifty-per-cent write-off.