The Ontario Film and Television Tax Credit – previously accessible only by productions attaining eight of 10 Cancon points – has been extended to include projects with a minimum of six points.

The amendment to the 20% Ontario labor rebate program was announced in the May 4 provincial budget.

The Ontario Computer Animation and Special Effects Tax Credit and the Ontario Digital Media Tax Credit have also been enhanced. Labor costs paid to individuals in Ontario who are not employees of the qualifying corporation (i.e. freelancers and other arm’s-length employees) are now deemed an eligible expense for the 50% rebate. Previously only employees of the qualifying corporation were allowable expenses under the terms of the program.

The lowered Cancon requirement on the ofttc harmonizes the program with the federal tax credit, which requires a minimum six out of 10 Cancon points.

It also places Ontario on a more competitive playing field in comparison with other provincial tax credit programs. The intent of the amendment is to encourage more production to stay in Ontario, says Sara Morton, director, tax credits at the Ontario Film Development Corporation.

The ofttc amendment is effective for productions commencing principal photography after May 4, 1999, and the animation and digital effects enhancements for expenses incurred after the May 4 date.