'PRODUCTION SERVICES' Tax Credits

  • Stable, reliable & financeable through CFC
  • 100% refundable - no brokering required

'PRODUCTION SERVICES' Tax Credits

  • No annual funding caps
  • No caps per Production
  • No salary caps
  • No sunset clauses or expiry dates

'PRODUCTION SERVICES' Tax Credits

  • No 'minimum spend in Canada' test
  • No Canadian filming/shooting days required
    -Both 'Post-Production-only'&'VFX-only' costs are eligible

'PRODUCTION SERVICES' Tax Credits

  • No Canadian 'cultural' tests
  • Non-Canadian entity can hold copyright

Canadian Content tax credits

  • Stable, reliable and bankable
  • 100% refundable - no brokering required

Today, the BC government announced that the Digital Animation or Visual Effects (DAVE) tax credit bonus would be expanded to include eligible post-production film activities.  The expanded credit will be available for productions where principal photography begins on or after March 1, 2015.
 
Read the press release here.  
Read the budget here
Posted: 2/17/2015 5:51:58 PM by | with 0 comments
Amendments which affect productions accessing ‘Canadian Content’ credits have been made to Sections 125.4, 241, and 1106 of the Income Tax Act. 
 
The amendments to Section 125.4 include updates to the definitions of ‘assistance’, ‘salary and wages’, and ‘labour expenditure’. 
 
The amendments to Section 241 allows CAVCO to make public some limited information, such as the names of the individuals for whom points were awarded, and the names of the producers, for productions certified by CAVCO.  
 
Read the full text of the amendments to Sections 125.4 and 241 here.   

The amendments to Section 1106 include:
1.       Copyright ownership updates:
·         The production company or a ‘prescribed person’ may be a ‘copyright owner’ of a production
·         The ‘copyright owner’, is now defined as:
o   ‘the maker’ who owns ‘copyright’,or
o   a person to whom copyright has been assigned by contract
·         The right of a person to participate in profits from a production does not make them a copyright owner
·         The granting of an exclusive license is not an assignment of copyright
 
2.       Prescribed persons updates:
·         The definition of ‘prescribed person’ now also includes the following:
o   a prescribed taxable Canadian corporation,
o   an individual who is a Canadian citizen or permanent resident, and
o   a partnership composed entirely of other prescribed persons

A prescribed person can:
·         invest in a production,
·         participate in profits generated from a production, and/or
·         own copyright in a production
 
A non-prescribed person can invest in or participate in profits from a production, but only if they do not in any way share in the copyright ownership.
 
Read the full text of the amendments to Section 1106 here.
Posted: 1/8/2015 1:31:20 PM by | with 0 comments
Alberta issued updated guidelines for the Alberta Production Grant on November 18, 2014.
 
Some of the major changes to the program include:
o   Reality TV is now an eligible genre
o   For projects with budgets exceeding $1 M
o   Applicants must demonstrate that at least 75 % of the project is funded, up from 70 %
o   Applicants who have not demonstrated 100 % confirmed financing may require a completion bond
o   3rd-party audited financial statements for projects are now required for budgets of $200 K or more, audit threshold was previously $500 K
o   The “Key Creative” definition has been replaced by “Head of Department” and has been expanded to include:  wardrobe, key hair, key make-up, interactive developer, location sound mixer, visual effects artist and up to three Albertan performers in lead or supporting roles
o   The Costume Designer is not considered a Head of Department
o   “Stream I” Productions
o   productions must be at least 50 % owned and controlled by Albertans, up from 30 %
o   a minimum of 8 Albertans must be employed in Head of Department positions, up from 6 “Key Creatives”
o   now a maximum of 4 trainees may be substituted for Albertan Head of Department positions
o   “Stream II” Productions
o   now applies to productions with less than 50 % Albertan ownership (previously less than 30 %)
o   now a maximum of 4 trainees may be substituted for Albertan Head of Department positions
o   Definition of “Albertan”: Applicants may request that individuals be considered Albertan if they have filed an Alberta Tax Return in any 1 of the 4 prior taxation years. Only those individuals approved in an advanced ruling will be considered. This practice will be reviewed on an annual basis and, pending crew development in Alberta, may be discontinued.
 
Read the revised guidelines here.
For more information, contact Alberta Film here
Posted: 12/4/2014 6:05:21 PM by | with 0 comments
On December 2, 2014, Quebec announced a bonus for Quebec ‘Content’ Film and Television Productions.  The basic tax credit rate of either 36% or 28% of qualifying labour expenditures, depending on the type of production, will be calculated on an ‘increased expenditure’ basis.  The ‘increased expenditure’ amount is equal to the sum of qualified labour expenditures plus an amount equal to 2% of qualified labour expenditures.

These changes will apply to productions for which an application for an advance ruling, or an application for a certificate (if an application for an advance ruling was not filed earlier), is submitted to SODEC after December 2, 2014.  The bonus expires on January 1, 2017.

Read the information bulletin here
Posted: 12/4/2014 6:00:00 PM by | with 0 comments
Canada Film Capital and EP Canada are excited to be sponsors of CineCoup’s Film Accelerator program again!  The program offers independent filmmakers a unique model to develop, market and finance their feature films.
Check out last year’s winner, ‘WolfCop’, here.
Posted: 11/19/2014 4:06:50 PM by | with 0 comments