Ontario Film and Television Tax Credit
Highlights
This program is designed for you. It offers a refundable tax credit based on your Ontario labour expenditures. This means you can get back 35% of your eligible labour costs. If you are a first-time producer, you can receive an enhanced rate of 40% on the first $240,000 of qualifying labour expenses. Additionally, productions outside the Greater Toronto Area (GTA) can get a 10% bonus on all Ontario labour expenditures.
Key Benefits:
- Significant Financial Support: Up to 35% back on eligible labour costs.
- Enhanced Rates: 40% for first-time producers on initial qualifying expenses.
- Regional Bonus: An extra 10% for productions outside the GTA.
Why Apply?
- Boost Your Budget: This credit can significantly reduce your production costs.
- Easy to Qualify: If your production meets the criteria, you are eligible.
- Government-Backed: Reliable and secure financial support.
Applying for this program can provide the financial boost your production needs, making it easier to manage costs and invest in quality.
Financing Details
Type of Financing: Tax Credit
Repayment Terms and Interest Rates:
- This is a refundable tax credit, meaning you do not need to repay it. There are no interest rates associated with this tax credit.
Eligible Expenses:
- Salaries and wages paid to Ontario residents.
- Remuneration paid to:
- Corporations that are personal service companies subject to tax in Ontario for the services of an Ontario resident.
- Sole proprietors or freelancers subject to tax in Ontario.
- Partnerships, for the services of a partner subject to tax in Ontario.
- Taxable Canadian corporations with a permanent establishment in Ontario for the services of their employee(s) who are Ontario residents.
- Reimbursements by a wholly-owned production company to its parent company for labour expenditures, as above, that were paid by the parent company on behalf of the production company.
Ineligible Uses of Funds:
- The funds cannot be used for non-Ontario costs, which are costs not paid to either Ontario residents or corporations with a permanent establishment in Ontario.
Fees:
- Administration fee of 0.15% of eligible expenditures, with a minimum fee of $500 and a maximum of $10,000 per application.
- Additional filing fee of $100 for applications received more than 24 months after the end of the first fiscal year in which principal photography began.
- Fee of $100 for each Amended Certificate.
Qualifications
- Must be a Canadian corporation.
- Must be Canadian-controlled.
- Must have a permanent establishment in Ontario.
- Must file an Ontario corporate tax return.
- Individual producer must have been an Ontario resident for tax purposes at the end of both of the two calendar years prior to commencement of principal photography.
- Production must have six Canadian content points (unless it is an official treaty co-production).
- Production must be predominantly shot and posted in Ontario.
- Must spend at least 75% of total final costs on Ontario expenditures.
- If for television, must be suitable for a minimum 30-minute time slot (except children’s programming).
- Must have an agreement in writing to be shown in Ontario within two years of completion, depending on the means of commercial exploitation.
- Must not be in an excluded genre (such as news or current affairs, talk shows, game shows, sports shows, awards shows, fundraising shows, reality television).
Must include a screen credit that acknowledges Ontario tax credit support in the production’s end credits if principal photography began after August 24, 2023.
Additional Requirements for Productions Made Available by Alternative Means:
- Total budget must be at least $250,000 if made commercially available under an agreement with a third party.
- Total budget must be at least $350,000 if made commercially available under an agreement with a related party.
- Total production budget must meet or exceed $2,000 per minute of the production’s completed runtime.
Disqualifications:
- Productions exclusively exhibited online where principal photography began before November 1, 2022.
- Productions in excluded genres such as instructional videos, reviews, commentaries, educational content, vlogs, music videos, esports, gaming, gambling, prank videos, speeches, sermons, event coverage, or productions primarily consisting of user-generated footage.
Description
This program offers your business a refundable tax credit. You can get back 35% of the eligible Ontario labour costs for your film or television production. If you are a first-time producer, you can receive an enhanced rate of 40% on the first $240,000 of qualifying labour expenses.
Additional bonuses are available:
- 10% bonus on all Ontario labour costs if your production is shot entirely outside the Greater Toronto Area (GTA) or has at least five location days in Ontario, with 85% of those days outside the GTA.
- Regional bonus for wholly animated productions if 85% of key animation is done outside the GTA.
This tax credit can significantly reduce your production costs, making it easier to manage your budget and invest more in your project. The money you get back can be used to cover salaries, wages, and other labour-related expenses, helping you to keep your production on track and on budget.
Program Steps
Gather Required Documentation: Prepare the following documents to support your application:
- Financial statements
- Business plan
- Proof of Ontario residency for the producer
- Agreement in writing for commercial exploitation
- Detailed budget and cost breakdown
- Screen credit acknowledgment (if applicable)
Complete the Application Form: Fill out the application form available on the Ontario Creates website. Ensure all sections are completed accurately.
Submit Documentation: Upload all required documents along with your completed application form through the Ontario Creates online portal.
Pay the Application Fee: Pay the administration fee, which is 0.15% of eligible expenditures, with a minimum of $500 and a maximum of $10,000 per application.
Review and Verification: Ontario Creates will review your application and documentation. They may request additional information or clarification during this process.
Receive Certificate of Eligibility: Once your application is approved, you will receive a Certificate of Eligibility from Ontario Creates.
File with Canada Revenue Agency (CRA): Submit the Certificate of Eligibility along with your corporate tax return to the CRA to claim the tax credit.
Await Disbursement: After the CRA processes your tax return, the tax credit amount, net of any Ontario taxes owing, will be paid to your corporation. If no taxes are owed, the full amount will be disbursed.