Film and Video Tax Credit
Highlights
This program is designed for your business to thrive in the film and video industry. It offers a refundable provincial Corporate Income Tax credit at a rate of 40% of eligible local labour costs, capped at 25% of production costs. This means you can receive significant financial support for your projects, making it easier to manage production expenses.
Key Benefits:
- Up to $5 million in tax credits for productions starting after July 1, 2021.
- No asset limit for production corporations, providing more flexibility.
- Simplified application process through the Newfoundland and Labrador Film Development Corporation.
By participating in this program, you can reduce your financial burden and focus on creating high-quality content. The approval process is straightforward, and the tax credit can be a substantial boost to your budget, allowing you to invest more in your projects and talent.
Financing Details
Type of Financing: This program offers a refundable provincial Corporate Income Tax credit.
Repayment Terms and Interest Rates:
- There are no repayment terms or interest rates as this is a tax credit, not a loan.
Eligible Expenses:
- Local labour costs: The tax credit covers 40% of eligible local labour costs.
- Production costs: The tax credit may not exceed 25% of total production costs.
Use of Funds:
- The funds can be used towards:
- Local labour costs for film and video production.
- Overall production costs, within the specified limits.
Restrictions on Use of Funds:
- The funds cannot be used for non-production related expenses.
- The corporation must pay at least 25% of its salaries and wages to residents of the province.
Fees:
- There are no direct fees associated with applying for this tax credit. However, the corporation must apply for eligibility to the Newfoundland and Labrador Film Development Corporation prior to the commencement of production.
Qualifications
- Must be a corporation involved in local film projects.
- Must pay at least 25% of its salaries and wages to residents of Newfoundland and Labrador.
- Must apply for eligibility to the Newfoundland and Labrador Film Development Corporation prior to the commencement of production.
- Must submit financial statements and cost reports upon project completion.
Must attach the tax credit certificate to the T2 return.
Disqualifications:
- None specified.
Description
This program offers your business a refundable tax credit for local film projects. You can get back 40% of your eligible local labor costs, but this amount can't be more than 25% of your total production costs.
You can receive up to $5 million per production. This is a significant increase from previous years, making it a great opportunity to fund your projects. To qualify, your company needs to pay at least 25% of its salaries and wages to residents of Newfoundland and Labrador.
Once your project is complete, you can apply for the tax credit. If approved, you'll get a tax credit certificate to include with your tax return. This credit can help reduce your overall tax burden, freeing up more resources for your business.
Program Steps
Gather Required Documentation: Prepare the necessary documents to support your application. These include:
- Financial statements
- Cost reports
- Detailed production budget
- Proof of local labour costs
- Any other relevant financial documentation
Apply for Eligibility: Submit an application for eligibility to the Newfoundland and Labrador Film Development Corporation before starting production. Ensure all required information and documents are included.
Complete Production: Proceed with the film project, ensuring compliance with all program requirements, including paying at least 25% of salaries and wages to residents of Newfoundland and Labrador.
Finalize Financial Statements and Cost Reports: Once the project is completed, finalize all financial statements and cost reports. Ensure these documents accurately reflect the production costs and local labour expenses.
Submit Tax Credit Application: Apply for the tax credit through the Department of Finance. Include all finalized financial statements, cost reports, and any additional required documentation.
Receive Tax Credit Certificate: Upon approval, you will receive a tax credit certificate from the Department of Finance. This certificate must be attached to your T2 Corporate Income Tax return.
File T2 Return: Submit your T2 Corporate Income Tax return, including the tax credit certificate, to claim the refundable tax credit.
