While a higher dollar and increased competition continue to challenge Canadian film and television production, some provinces say they see signs of stability thanks to enhanced tax credits and a strong stable of domestic producers.

Nova Scotia, which typically ranks fourth in film production behind Ontario, British Columbia and Quebec, moved in 2007 to boost its film tax credit to 50 per cent from 35 per cent.

The change was made as several provinces, including P.E.I. and New Brunswick, introduced increased tax credits when many in the industry were ringing alarm bells over the impact of a higher loonie and fierce competition from the United States.

Ann MacKenzie, CEO of Film Nova Scotia, said the benefits of that increase were noticeable within the next fiscal year.

“It really kick-started 2008-09. That year ended up being our highest on record ... with $150 million in production,” said MacKenzie.

Recent numbers released by the province show business declined in fiscal 2009-10 to $97 million, but that is still well above the $75 million registered in 2007, which was the lowest figure in a decade.

However, she believes the most recent figures also reveal the strength of Nova Scotia’s production capacity because over half ($54 million) was generated by local producers.

MacKenzie said the current calendar year has seen increased activity for films. There are also two larger budget television series that are shot in the Halifax area.