'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 reduced the OPSTC rate to 21.5% and the OCASE tax credit rate to 18% for expenditures incurred after April 23, 2015. Pre-budget rates were grandfathered for qualifying expenditures incurred after April 23, 2015 and before August 1, 2016, for productions which commenced principal photography by July 31, 2015. For productions that don’t qualify for grandfathering, the transitional grant will provide partial relief from the rate reductions on qualifying expenditures incurred after April 23, 2015 and before January 1, 2017, for productions which satisfy all of the criteria described below. 
 
Ontario Production Services Tax Credit (OPSTC)
 
1.        Eligible Agreement
 
Before April 24, 2015, your company has entered into at least one written agreement in respect of a qualifying production expenditure in respect of the production with a person that deals at arm’s length with your company and any of the following criteria are satisfied: 
    1. The agreement is in respect of services of a producer, a director, a key cast member, a production crew or a post-production crew.
    2. The agreement is in respect of a studio located in Ontario, or a location in Ontario.
    3. The agreement demonstrates, in the opinion of the Minister of Tourism, Culture and Sport, that your company has made a significant commitment to production activities in Ontario.
2.        Application for OPSTC Certificate
 
Your company must apply to the OMDC for an OPSTC Certificate in respect of the eligible production before December 1, 2015 and indicate in the application that you are applying for the transitional grant.
 
3.        Commencement of Principal Photography/Key Animation
 
Principal photography or key animation for the production must commence after July 31, 2015 and before December 1, 2015.
 
Ontario Computer Animation and Special Effects Tax Credit (OCASE)
 
1.        Eligible Agreement
 
Before April 24, 2015, your company 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 your company and any of the following criteria are satisfied:
    1. The agreement is in respect of digital animation or digital visual effects for use in the eligible production.
    2. The agreement demonstrates, in the opinion of the Minister of Tourism, Culture and Sport, that your company has made a significant commitment to production activities related to the eligible production in Ontario.
 
2.        Notification to the OMDC
 
Before December 1, 2015, your company must notify the Ontario Media Development Corporation (“OMDC”) in writing of its intent to apply for the transitional grant in respect of the eligible production. You must do this by submitting the form Notice of Intent to Apply for OCASE Transitional Grant found on the OMDC’s Online Application Portal.
 
3.        Commencement of Principal Photography/Key Animation
 
Principal photography or key animation for the production must commence after July 31, 2015 and before December 1, 2015.
  
4.        Application for OCASE Certificate
 
A filing deadline for an OCASE Tax Credit Certificate will be determined and communicated to affected companies after all Notices of Intent to Apply for OCASE Transitional Grant have been received by OMDC.
 
 Minister’s Opinion
 
If your company does not have a written agreement that satisfies the specific types of agreements listed above for the OPSTC and OCASE, you can request an opinion of the Minister of Tourism, Culture and Sport as to whether another written agreement demonstrates that you have made a significant commitment to production activities in respect of the production in Ontario. Such a request should only be made if your company does not have an agreement that otherwise satisfies the criteria. Your company must have entered into this written agreement before April 24, 2015 in respect of a qualifying expenditure for the eligible production, with a person that deals at arm’s length with your company.
 
If a determination is made that the agreement does demonstrate such a commitment, a notice of determination will be provided to your company.
Posted: 10/20/2015 3:34:38 PM by | with 0 comments