'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

The 2015 Ontario Budget introduced changes to reduce the OPSTC and OCASE tax credit rates for expenditures incurred after April 23, 2015. The Ontario Government has heard the concerns of industry and has proposed measures that would grandfather the tax credit rates of 25% and 20% for the OPSTC and OCASE, respectively, for eligible expenditures incurred after April 23, 2015 and before August 1, 2016 for productions that meet the criteria outlined below:
 
Ontario Production Services Tax Credit (OPSTC):
 
A qualifying corporation’s Ontario production services tax credit for an eligible production shall be 25 per cent of its qualifying production expenditures incurred after April 23, 2015 and before August 1, 2016 if all of the following criteria are satisfied:
 
1.       Before April 24, 2015, the corporation has entered into at least one written agreement in respect of a qualifying production expenditure with a person that deals at arm’s length with the corporation and any of the following criteria are satisfied:
 
i.                    The agreement is in respect of services of a producer, a director, a key cast member, a production crew or a post-production crew.
ii.                  The agreement is in respect of a studio located in Ontario, or a location in Ontario.
iii.                The agreement demonstrates, in the opinion of the Minister of Tourism, Culture and Sport, that the corporation has made a significant commitment to production activities in Ontario.
 
2.       Before August 1, 2015, the corporation has applied to the Ontario Media Development Corporation for a certificate in respect of the production.
 
3.       Principal photography or key animation for the production commenced before August 1, 2015.
 
Ontario Computer Animation and Special Effects Tax Credit (OCASE):
 
A qualifying corporation’s Ontario computer animation and special effects tax credit shall be 20 per cent of its qualifying labour expenditures for expenditures incurred after April 23, 2015 and before August 1, 2016 if all of the following criteria are satisfied:
 
A qualifying corporation’s Ontario computer animation and special effects tax credit shall be 20 per cent of its qualifying labour expenditures for expenditures incurred after April 23, 2015 and before August 1, 2016 if all of the following criteria are satisfied:
 
2.       Before April 24, 2015, the corporation has entered into at least one written agreement in respect of a qualifying labour expenditure for the eligible production with a person that deals at arm’s length with the corporation and any of the following criteria are satisfied:
 
i.                    The agreement is in respect of digital animation or digital visual effects for use in the eligible production.
ii.                  The agreement demonstrates, in the opinion of the Minister of Tourism, Culture and Sport, that the corporation has made a significant commitment to production activities related to the eligible production in Ontario.
 
3.       Before August 1, 2015, the corporation has notified the Ontario Media Development Corporation in writing of its intent to apply for a certificate in respect of the eligible production.
 
4.       Before August 1, 2016, the corporation has applied to the Ontario Media Development Corporation for a certificate in respect of the eligible production.
 
5.       Principal photography or key animation for the production commenced before August 1, 2015.
 
The OPSTC and OCASE legislation will incorporate the above-noted changes. Applicants should review the legislation directly for further details. The applicable tax credit guidelines will be updated on the OMDC website in the coming weeks.
 
For further information on these amendments to Bill 91, please send an inquiry to taxcredits@omdc.on.ca 
 
Transitional Grant
 
For productions that commenced principal photography or key animation between August 1, 2015 and November 30, 2015, inclusive, but otherwise met the criteria listed for OPSTC and OCASE above, there will be a separate transitional mechanism outside of the Taxation Act.
 
Read the full bulletin here.
Posted: 5/25/2015 4:13:32 PM by | with 0 comments
Further to our April 23, 2015 update, we are very pleased to report that the Minister released the following statement today about grandfathering:   
 
“The 2015 Provincial Budget announced changes to the film and television tax credits that would ensure the long-term sustainability of our tax credits and protect our position as the most competitive jurisdiction in the country.
 
Our government has a strong relationship with our industry partners and I was pleased to work with them through the Budget committee process. We received valuable feedback from the film and television sector on the need for stable and reliable support. Productions require intense planning and predictable budgets long before the cameras roll.
 
For this reason we intend to table amendments to the Ontario Production Services Tax Credit (OPSTC) and Ontario Computer Animation and Special Effects Tax Credit (OCASE) that would, if passed, provide a transition period to ensure that producers who made a significant commitment to Ontario before the introduction of the Budget would receive the tax credit rates they expected. This approach includes a combination of provisions through the tax system and a grant.
 
Ontario is the number one film and television production centre in Canada. The entertainment and creative cluster supports over 206,000 jobs and contributes $12.4B to the provincial economy. With these proposed changes I am confident we will continue to attract new investment, create jobs and foster economic growth.”
 
- Hon. Michael Coteau
Minister of Tourism, Culture and Sport, Province of Ontario
  
CFC will keep you updated.
Posted: 5/25/2015 4:11:12 PM by | with 0 comments
The Manitoba Film and Video Production Tax Credit, which was scheduled to expire December 31, 2016, has been extended for three years to the end of 2019.
Posted: 5/6/2015 12:50:55 PM by | with 0 comments
In today’s Budget, the Ontario Finance Minister announced that the lower Canadian dollar is making Ontario an increasingly attractive location for productions and is increasing foreign investment in the film and television sector. He stated that foreign productions have benefited significantly from the drop in the Canadian dollar relative to the US dollar. As a result, he said there is a reduced need for government support of foreign productions. The Minister has stated that the proposed changes to Ontario’s film and television tax credits strike a balance between cultural support and fiscal responsibility. Ontario expects to continue to attract production activity through a combination of world-class infrastructure, talent and skills, diverse locations, and stable and competitive financial incentives.
 
Ontario Production Services Tax Credit (OPSTC)
 
The OPSTC is currently a 25 % refundable tax credit. Ontario proposes to reduce the rate of this credit from 25 %  to 21.5 % for qualifying production expenditures incurred after April 23, 2015
 
Ontario Computer Animation and Special Effects Tax Credit (OCASE)
 
The OCASE is currently a 20 % refundable tax credit available to qualifying corporations on Ontario labour for eligible computer animation and special effects activities. Ontario proposes to reduce the rate of the OCASE from 20 % to 18 % for expenditures incurred after April 23, 2015.
Posted: 4/23/2015 5:19:46 PM by | with 0 comments
Effective July 1, 2015, Nova Scotia will provide funding for screen-based content creation to eligible organizations with a permanent establishment in Nova Scotia through the new Nova Scotia Film & Television Production Incentive Fund.  Nova Scotia has allocated $10 million dollars to the Fund in its 2015-2016 budget.  The Fund is based on the Alberta Production Grant, and is expected to operate similarly.
 
Two streams will be available:
• Stream I: Indigenous/Co-Production: base funding of 25% of all eligible Nova Scotia costs
• Stream II: Foreign/Service Productions: base funding of 25% of all eligible Nova Scotia costs
• Additional Incentive for rural production work and Nova Scotia producers
 
Eligible expenses will include:
• Post production
• Special effects
• Musicians, composers, orchestrators
• All Nova Scotia labour
• All rentals
• Carpenters, painters, electricians and other required trades
• Craft services
• Food and accommodations
• Wardrobe, makeup and hair
• All production services
• Studio facility rental
• Equipment rental such as cameras, generators, cranes, scaffolding
Posted: 4/23/2015 9:42:59 AM by | with 0 comments