The Ontario government has delayed changes to two production-related tax credits introduced in its latest budget.

Productions that made a “significant commitment” to Ontario before the latest provincial budget was released on April 23 will be able to access the fully refundable Ontario Production Services Tax Credit at its previous rate of 25%. Previously, the province stipulated in its budget that the new tax credit rate of 21.5% would be instituted for all qualifying production expenditures incurred after April 23, 2015.

The government has also delayed implementing changes to the Ontario Computer Animation and Special Effects Tax Credit. Productions that booked into the province before the budget was passed can access the refundable tax credit at its full 20% rate, rather than its now-reduced rate of 18% of eligible expenditures. Like the Production Services tax credit, these changes were previously set to come into effect for all expenses incurred after April 23.

These changes will be financed via a combination of provisions through the tax system and a grant, and follow budget committee meetings between the government and members of Ontario’s film and television industry. For both the OPSTC and the OCASE, these grandfathered tax credit rates would apply for eligible expenditures incurred after April 23, 2015 and before Aug. 1, 2016.

Productions must  meet a number of conditions to access the grandfathered tax credit rates, including a stipulation that principal photography or key animation on the project must occur before Aug. 1, 2015. Productions that start principal photography or key animation between Aug. 1, 2015 and Nov. 30, 2015 and meet specific criteria for the OPSTC and the OCASE will be able to access a transitional grant program outside the taxation system.

The amendments are intended to “provide a transition period to ensure that producers who made a significant commitment to Ontario before the introduction of the budget would receive the tax credit rates they expected,” said Michael Coteau, minister of tourism, culture and sport, in a statement.

“Our government has a strong relationship with our industry partners and I was pleased to work with them through the budget committee process. We received valuable feedback from the film and television sector on the need for stable and reliable support. Productions require intense planning and predictable budgets long before the cameras roll,” Coteau also said in his statement.

The latest Ontario budget has not yet officially been passed.

Image courtesy of Shutterstock