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Canada’s tax credits

By Playback Staff
April 1, 2001

British Columbia | Yukon Territory | Saskatchewan | Manitoba | Ontario | Quebec | New Brunswick | Nova Scotia | Newfoundland & Labrador

Territory Canada Canada British Columbia
Tax Credit Canadian Film or Video Production Tax Credit Film or Video Production Services Film Incentive BC package of tax credits: Basic Incentive, Regional Incentive, Training Incentive
Opportunities for outside producers
  • Treaty coproductions qualify
    		•
  • Available to taxable Canadian corporations or foreign-owned corporations with permanent establishments in Canada.
    		•
  • The corporation claiming the tax credit must be Canadian controlled.
  • Special rules apply for treaty coproductions.
    		•
    Essential Information
  • Available at a rate of 25% of eligible salaries and wages incurred after 1994.
  • Eligible salaries and wages may not exceed 48% of the cost of the production, net of assistance. Therefore, the tax credit could provide assistance of up to 12% of the cost of production, net of assistance.
  • Co-administered by the Canadian Audio-Visual Certification Office (cavco) with the Canada Customs and Revenue Agency.
    		•
  • Equal to 11% of salary and wages paid to Canadian residents or taxable Canadian corporations (for amounts paid to employees who are Canadian residents) for services provided to the production in Canada.
  • No cap on the amount that can be claimed.
  • Co-administered by the Canadian Audio-Visual Certification Office (cavco) with the Canada Customs and Revenue Agency.
    		•
  • Basic Incentive: 20% of eligible labor costs.
  • Regional Incentive: 12.5% of eligible labor costs. Available for production outside Vancouver.
  • Training Incentive: The lesser of 30% of trainee salaries or 3% of eligible labor costs. Must be accessed with the Basic Incentive or Regional Incentive.
  • Cap on eligible labor costs during a taxation year at 48% of total production costs.
    		•
    Eligibility    
  • Basic Incentive: Companies must be b.c.-controlled with controlling ownership of the copyright. The producer must be b.c.-based and a Canadian.
  • Regional Incentive: For productions that shoot a minimum 85% of principal photography and have production offices outside Vancouver.
  • Training Incentive: Trainees must be registered in an approved training program.
    		•
    Contact Information Canadian Audio-Visual Certification Office (cavco)
    (613) 946-7600/(888) 433-2200,
    fax: (613) 946-7602
    www.pch.gc.ca/cavco    		 Canadian Audio-Visual Certification Office (cavco)
    (613) 946-7600/(888) 433-2200,
    fax: (613) 946-7602
    www.pch.gc.ca/cavco    		 B.C. Film
    Robert Wong (604) 736-7997
    bcf@bcfilm.bc.ca
    www.bcfilm.bc.ca

    Territory British Columbia Saskatchewan Manitoba
    Tax Credit Production Services Tax Credit Saskatchewan Film Employment Tax Credit Manitoba Film and Video Production Tax Credit
    Opportunities for outside producers
  • Eligible applicants are film and tv production companies that have incurred qualifying labor expenses in b.c.
  • The company does not have to be a Canadian-owned corporation, and there is no requirement that it have an interest in the copyright.
    		•
  • Out-of-province production companies could co-venture with a Saskatchewan company in one of two ways: form a single-purpose company headquartered in Saskatchewan with a Saskatchewan partner who would control at least 50% of the entity and meet production company eligibility, or set up a coproduction between an eligible Saskatchewan-based company and an out-of-province company or companies. In the latter case, the Saskatchewan-based company must be the entity applying for and receiving the credit.
    		•
  • Coproductions qualify.
  • No Canadian or Manitoba content requirements.
  • No copyright ownership required.
    		•
    Essential Information
  • Equivalent to 11% of eligible b.c. labor costs incurred in making film or tv productions.
  • No project cap limiting tax credit that can be claimed with respect to a particular production.
  • No corporate cap limiting tax credit that a corporation or group of corporations can claim.
    		•
  • Can claim 35% of all eligible labor costs, to a maximum of 50% of total eligible production costs or 17.5% of a total production budget.
  • Eligible labor includes any Saskatchewan residents or any ‘deemed labor.’
  • The 35% credit for out-of-province labor is available for mentors where there is no qualified Saskatchewan employee available, and the mentor is hired to train a Saskatchewan resident employee.
  • Additional 5% bonus available for productions located 25 miles outside of Regina or Saskatoon; calculated on Saskatchewan labor and any other spending in the province.
    		•
  • Rebate of 35% on approved Manitoba labor expenditures, up to a maximum 22.5% of eligible production costs.
    		•
    Eligibility
  • Productions must meet the following conditions: minimum budget levels of $100,000 (us$65,000) per episode less than a half-hour or $200,000 (us$131,000) per episode greater than a half-hour for episodic television and $1 million (us$654,000) in all other cases.
    		•
  • Must have a permanent establishment in Saskatchewan, and pay at least 25% of all labor costs to Saskatchewan residents.
  • No Canadian or Saskatchewan content requirements.
  • No copyright requirements.
  • Eligible projects: tv, cinema, video tape, digital, cd-rom, multimedia or non-theatrical productions.
    		•
  • Applicant must have a permanent establishment in Manitoba, be incorporated in Canada, be a taxable Canadian corporation with assets of less than $50 million (us$33.7 million), and not hold a Canadian Radio-Television and Telecommunications Commission broadcasting licence.
  • A minimum 25% of all the corporation’s salaries and wages must be paid in Manitoba to eligible employees.
  • Eligible projects: Fully financed tv movies, docs, features, dramatic series, animation, children’s programming, music programming, informational series, variety, multimedia, digital and cd-rom productions.
    		•
    Contact Information B.C. Film
    Robert Wong (604) 736-7997
    bcf@bcfilm.bc.ca
    www.bcfilm.bc.ca    		 SaskFilm
    Susanne Bell, director of programs and services (306) 798-3456
    saskfilm@accesscomm.ca
    www.saskfilm.com    		 Manitoba Film and Sound
    Alexa Rosentreter
    (204) 947-2040
    www.mbfilmsound.mb.ca

    Territory Ontario Ontario Ontario
    Tax Credit Ontario Film and Television Tax Credit Ontario Production Services Tax Credit Ontario Computer Animation and Special Effects Tax Credit
    Opportunities for outside producers
  • Treaty coproductions are eligible, but the credit is calculated only on the Ontario portion of the production.
    		•
  • Available to non-Cancon productions and foreign-based companies producing in Ontario.
    		•
  • Available to taxable Canadian or foreign-owned corporations if they carry out digital animation or digital visual effects activities at a permanent establishment in Ontario.
  • Digital animation and digital effects created for non-Canadian productions qualify.
    		•
    Essential Information
  • A 20% refundable tax credit available to Ontario-based, Canada-controlled production companies for eligible Ontario productions.
  • Credit is based on Ontario labor expenditures, net of assistance, related to those expenditures. Equity from a government film agency is treated as assistance.
  • Productions commencing principal photography before May 2, 2000 are subject to a maximum credit based on 48% of the net production costs.
  • First-time productions are eligible for an enhanced rate of 30% on the first $240,000 (us$157,000) of qualifying labor expenditures.
  • Productions commencing principal photography after May 2, 2000 may also be eligible for a regional bonus of 10% on the production’s total eligible Ontario labor expenditures.
  • Annual corporate and per-project limits on productions that commenced principal photography before Nov. 1, 1997.
  • Administered by the Ontario Media Development Corporation jointly with the Ministry of Finance.
    		•
  • An 11% refundable tax credit based on qualifying Ontario labor expenditures performed in Ontario for eligible productions.
  • Productions commencing principal photography after May 2, 2000 may also be eligible for a regional bonus of 3% on the production’s total eligible Ontario labor expenditures.
  • Administered by the Ontario Media Development Corporation jointly with the Ministry of Finance.
    		•
  • A 20% refundable tax credit available to qualifying corporations on Ontario labor expenditures for activities directly in support of the creation of digital animation or digital visual effects for use in eligible film or tv productions.
  • Credit is calculated on the lesser of Ontario labor expenditures and 48% of the prescribed cost of eligible activities, net of government assistance.
  • Administered by the Ontario Media Development Corporation jointly with the Ministry of Finance.
    		•
    Eligibility  
  • Qualifying corporations are taxable Canadian or foreign-owned corporations with a permanent establishment in Ontario that own copyright in the production or contract directly with the copyright owner to provide production services.
  • Productions must be in an eligible genre and have production expenditures in excess of certain minimums.
    		•
  • Productions must be for commercial exploitation, be in an eligible genre, and if for film and tv and produced before May 6, 1998, must generally be suitable for broadcast in a minimum 30-minute time slot.
    		•
    Contact Information Ontario Media Development Corporation
    Len Pendergast
    (416) 314-6858
    fax: (416) 314-6876
    www.omdc.on.ca    		 Ontario Media Development Corporation
    Len Pendergast
    (416) 314-6858
    fax: (416) 314-6876
    www.omdc.on.ca    		 Ontario Media Development Corporation
    Len Pendergast
    (416) 314-6858
    fax: (416) 314-6876
    www.omdc.on.ca

    Territory Quebec Quebec Quebec
    Tax Credit Quebec Refundable Tax Credit Refundable Tax Credit for Film and Television Production Services Special-Effects and CGI Top-Up
    Opportunities for outside producers
  • Coproductions qualify if a minimum 75% of production costs (of the Quebec portion of the budget) are spent in Quebec.
  • The basic credit is calculated on the Quebec portion of the budget.
    		•
  • Producers outside of Quebec can be eligible when they shoot in Quebec or by working with a Quebec service producer. Also eligible for the post-production work incurred in Quebec, even if the production is not shot in Quebec
    		•
  • Productions receiving the Quebec Refundable Tax Credit or the Refundable Tax Credit for Film and Television Production Services qualify.
    		•
    Essential Information
  • A content tax credit, administered by Societe de developpement des entreprises culturelles (sodec), that covers one-third of eligible man-power costs incurred by a qualified Quebec company and paid to an individual or company established in Quebec.
  • Capped at 15% of a production’s budget, 20.25% in the case of French-language feature films and single documentaries, 25% in the case of regional productions (in Quebec but out of the Montreal region) produced by outside Montreal producers.
  • Capped at $2.5 million (us$1.6 million) per production in all content categories.
    		•
  • Equivalent to 11% of eligible labor costs incurred in respect of eligible productions for services rendered in Quebec and paid to taxpayers residing in Quebec.
  • A 20% enhancement is granted for animation and special effects.
    		•
  • An additional credit may be added to both the Quebec content and production services credits for special effects-related and cgi-related costs incurred in Quebec.
  • The cgi top-up is scaled in a manner that maximizes the credit for Quebec content productions at a maximum 20.25% of the budget, and 31% of labor expenses (including 11% under the Refundable Tax Credit for Film and Television Production Services) related to eligible activities for service productions.
    		•
    Eligibility
  • Companies must be controlled by Quebec residents.
  • The producer (in title) must be a Quebec resident.
  • Producer must be a Quebec resident on Dec. 31 of the year preceding the year during which an application for an advance ruling is filed with sodec regarding the production.
  • Certification for a production of more than 75 minutes stipulates that at least 75% of production expenditures, and at least 75% of post-production expenditures, excluding financing costs,are spent in Quebec.
  • Productions of less than 75 minutes qualify if a minimum 75% of production costs are incurred in Quebec.
  • sodec guarantees loans to producers of up to 90% of the anticipated credit.
  • Eligible projects: Features, mows, docmentaries and documentary series, children’s, live-action, animated and certain variety and magazine programs.
    		•     
    Contact Information sodec
    Stephane Cardin, general director, Tax Credit Programs,
    (514) 841-2200/(800) 363-0401
    info@sodec.gouv.qc.ca;
    www.sodec.gouv.ca    		 sodec
    Stephane Cardin, general director, Tax Credit Programs,
    (514) 841-2200/(800) 363-0401
    info@sodec.gouv.qc.ca;
    www.sodec.gouv.ca    		 sodec
    Stephane Cardin, general director, Tax Credit Programs,
    (514) 841-2200/(800) 363-0401
    info@sodec.gouv.qc.ca;
    www.sodec.gouv.ca

    Territory New Brunswick Nova Scotia Newfoundland & Labrador
    Tax Credit New Brunswick Labour Incentive Film Tax Credit Nova Scotia Film Industry Tax Credit Newfoundland and Labrador Film and Video Industry Tax Credit
    Opportunities for outside producers
  • A company outside of New Brunswick can have access to the tax credit through a coproduction with a New Brunswick company or producer or by incorporating a company in New Brunswick.
    		•
  • Coproductions are eligible, but the applying producer must have a permanent establishment in Nova Scotia.
    		•
  • Foreign producers have access to the tax credit by teaming up in a coproduction with a Newfoundland and Labrador producer
  • Also eligible if incorporated as a Canadian company and can demonstrate permanent establishment in Newfoundland and Labrador
    		•
    Essential Information
  • Can equal up to 40% of wages paid to New Brunswick residents.
  • Salaries in excess of 50% of total production costs are not eligible.
  • Under certain conditions, NB Film will waiver non-New Brunswick residents when qualified New Brunswick residents are not available, and these employees would be eligible for the tax credit.
  • The province is considering removing the current limit of $1 million (us$654,000) per production and $2 million (us$1.3 million) per corporation in any 12 month period.
    		•
  • Equivalent to 30% to 35% of the eligible Nova Scotian labor content to a maximum of 15% to 17.5% of the total eligible production budget.
    		•
  • Based on a calculation of eligible labor limited to the lesser of 25% of the total eligible budget or 40% of the total eligible labor expenditures.
    		•
    Eligibility
  • Production companies must have less than $25 million (us$16.4 million) in assets and the project must pay at least 25% of salaries to New Brunswick residents.
    		•   
  • At least 25% of the total salaries and wages must be paid in Newfoundland and Labrador to eligible employees.
    		•
    Contact Information New Brunswick Film
    Ray Wilson, executive director, (506) 453-8540,
    Ghislain Labbe, (506) 869-6868
    nbfilm@gnb.ca
    www.gnb.ca/filmnb    		 Nova Scotia Film Development Corporation
    Stephen Fielding (902) 424-7177
    www.film.ns.ca    		 Newfoundland and Labrador Film Development Corporation
    Chris Bonnell, director of programs (709) 738-3456>
    chris@newfilm.nf.net
    www.newfilm.nf.net

    Territory Yukon
    Tax Credit Yukon Film Incentive Program package of rebates: Labor rebate, Travel rebate, Training rebate
    Opportunities for outside producers The company does not have to be registered in the Yukon. As a rebate program, payments are made much more quickly than conventional refundable tax credits.
    Essential Information
  • Can claim up to 35% of wages paid to eligible Yukon labor, capped at 50% of total Yukon expenditures. Yukon labor must equal or exceed 25% of total person days on Yukon portion of production.
  • Can apply for up to 50% of travel costs between Vancouver and Whitehorse, according to this formula: multiply $2,000 by number of days production in Yukon, to a maximum of $15,000 or 15% of total Yukon expenditures (other than subsidized labor), whichever is less.
  • Can apply for 35% rebate for out-of-territory labor for mentors where there is no qualified Yukon employee available, and the mentor is hired to train a Yukon resident employee.
  • Commercials can access up to 50% of travel costs; multiply $2,000 by the number of days the production is in Yukon to a maximum of $10,000, or 10% of total Yukon expenditures, whichever is less.
    		•
    Eligibility Projects must be dramatic TV programs or feature films.
    Contact Information Yukon Film Commission
    Mark Hill, (867) 667-5400
    info@reelyukon.com
    www.reelyukon.com