Ontario Production Services Tax Credit
Highlights
This program is designed for businesses like yours in the film and television production industry. It offers a refundable tax credit of 21.5% on qualifying production expenditures in Ontario. This can significantly reduce your production costs, making it easier to manage your budget and invest in high-quality content.
Why Apply?
- Financial Relief: Combine this credit with the federal Film or Video Production Services Tax Credit for even more savings.
- No Limits: There are no per-project or annual corporate tax credit limits, allowing you to maximize your benefits.
- Broad Eligibility: The credit covers a wide range of expenditures, including labour, service contracts, and tangible property like equipment and studio rentals.
What's in it for You?
- Increased Cash Flow: Receive a substantial refund that can be reinvested into your production.
- Competitive Edge: Lower production costs can help you produce higher-quality content and compete more effectively in the market.
- Simplified Process: The program is jointly administered by Ontario Creates and the Canada Revenue Agency, ensuring a streamlined application process.
Qualifying for this program is straightforward, and it can provide your business with the financial support needed to thrive in the competitive film and television industry.
Financing Details
Type of Financing: Tax Credit
Repayment Terms and Interest Rates:
- This is a refundable tax credit. There are no repayment terms or interest rates.
Eligible Expenses:
- Ontario Labour Expenditures: Salaries and wages paid to Ontario residents.
- Service Contracts: Payments to Ontario-based service providers.
- Tangible Property Expenditures: Costs for equipment, studio rentals, computer software, and location fees incurred in Ontario.
Ineligible Uses of Funds:
- The funds cannot be used for productions in excluded genres such as news, current events, public affairs, talk shows, sports events, reality TV, pornography, advertising, or productions primarily for industrial, corporate, or institutional purposes.
Fees:
- Administration fee of 0.15% of eligible expenditures, with a minimum fee of $5,000 and a maximum fee of $15,000 per application.
- Additional filing fee of $100 for applications submitted more than 24 months after the start of principal photography.
- $100 fee for each amended certificate.
Qualifications
- Must be a Canadian or foreign-owned corporation.
- Must carry on a film or video production, or production services business.
- Must have a permanent establishment in Ontario.
- Must file an Ontario corporate tax return.
- Must own the copyright in the eligible production or contract directly with the copyright owner to provide production services.
- Production cost must exceed $1 million (Cdn.), except for series or pilots.
- For series or pilots, cost per episode must exceed $100,000 (Cdn.) for episodes under 30 minutes.
- For episodes over 30 minutes, cost must exceed $200,000 (Cdn.).
- Must not be in an excluded genre:
- News
- Current events or public affairs programming
- Programs including weather or market reports
- Talk shows
- Game, questionnaire, or contest shows
- Sports events or activities
- Gala presentations or awards shows
- Productions soliciting funds
- Reality television
- Pornography
- Advertising
- Productions for industrial, corporate, or institutional purposes
- Productions contrary to public policy
- Principal photography must have commenced on or after November 1, 2022.
- Must be made for commercial exploitation by:
- Theatrical distribution
- Television broadcast
- Alternative means (online, video-on-demand, physical media)
For productions starting principal photography after August 24, 2023, must include an acknowledgment of Ontario tax credit support in the end credits.
Disqualifications:
- Productions receiving an Ontario Film and Television Tax Credit (OFTTC).
- Interactive productions (e.g., multiple endings, "choose your own adventure," video games).
Description
This program offers your business a refundable tax credit of 21.5% on qualifying production expenses in Ontario. This includes costs like wages, service contracts, and tangible property such as equipment and studio rentals.
You can combine this with a federal tax credit of 16% on Canadian labour expenses, maximizing your savings. There are no limits on the amount you can claim per project or annually, giving you flexibility in your budgeting.
The credit is designed to support film and television productions, whether they are for theatrical release, TV broadcast, or online streaming. This financial boost can help you manage production costs more effectively, allowing you to focus on creating high-quality content.
Program Steps
Gather Required Documentation: Prepare the following documents to complete your application:
- Financial statements
- Business plan
- Proof of Ontario corporate tax return filing
- Contracts with copyright owners (if applicable)
- Detailed budget of qualifying production expenditures
- Proof of Ontario residency for key personnel
- Any other relevant financial or contractual documents
Complete the Qualifying Production Expenditure Calculation Form: This form helps calculate your eligible production expenditures. Ensure all figures are accurate and reflect your production costs.
Submit Application to Ontario Creates: Apply for a certificate of eligibility from Ontario Creates. Include all prepared documentation and the completed expenditure calculation form.
Receive Certificate of Eligibility: Once your application is reviewed and approved, you will receive a certificate of eligibility from Ontario Creates.
File Tax Return with CRA: Submit your Ontario corporate tax return along with the certificate of eligibility to the Canada Revenue Agency (CRA) to claim the tax credit.
Acknowledge Ontario Tax Credit Support: Ensure your production includes the required screen credit acknowledgment in the end credits as specified by Ontario Creates.
Await Tax Credit Payment: The CRA will process your tax return and issue the tax credit payment, net of any Ontario taxes owing. If no taxes are owed, the full amount will be paid out.
Maintain Records: Keep detailed records of all expenditures and documentation related to the production for future reference or audits.
