Montreal: Quebec’s new refundable production tax credit for multimedia titles is especially designed to promote French-language content in the cd-rom and Internet marketplace, says an official with sodec, the administering agency.

Quebec expects to spend $3 million on the program this year.

‘The program creates a very wide opening for multimedia titles. The priority (for government) is to put Quebec content on the market,’ says Pierre Leblanc, director general, enterprise financing, sodec.

The maximum value of the credit for qualified production is 30% of the production budget.

The calculation of the credit is tied to admissible manpower costs, the language of production, and commercial performance.

The basic credit is calculated as 20% of 50% of admissible labor costs, or 10% of the budget. The bonus features add a 10% credit for French-language titles, and a second 10% bonus, or ‘prime,’ based on a title’s domestic and international revenues.

Leblanc says the program is being fine-tuned and should be up and running by September.

While the ‘anticipated’ cost of the program is $3 million, Leblanc says there is no formal cap.

Admissible titles include entertainment products aimed at consumers as well as corporate and institutional titles in areas such as training, the promotion of culture including libraries and museums, and the promotion of Quebec industrial sectors such as tourism, health and social services. The maximum value for corporate titles is capped at 20%.

Corporate Web sites are excluded as are electronic transactions, video conferencing, etc.

A minimum of 75% of a qualifying production’s budget has to be spent in Quebec and the rights must be held for a period of three years.

Leblanc says sodec is establishing provisions for coproduction.