Numerous tax credits are available to support the film, television, and digital media industries in Canada, with the potential to receive credit rates covering up to 100% of eligible expenditures, depending on the type of program, as well as company size, location, and production type. However, your clients may be missing out on tax credits they are eligible for due to the complexity of each individual case. We have summarized eligibility criteria for key tax credits to determine which programs your clients may be able to access.

Federal

Federal programs are available Canada-wide, with certain credits available to foreign corporations for productions filmed within Canada. Below is a list of key film and digital media tax credits and corresponding eligibility criteria.

Canadian Film or Video Production Tax Credit (CPTC)

The CPTC is a fully refundable tax credit which can cover up to 25% of qualified labour costs per year, with labour costs capped at 60% of the production’s total costs.

Your client may be eligible if:

  • They are a taxable Canadian production company.
  • They are conducting business through a permanent establishment in Canada.
  • They are an owner of Canadian copyrighted material.
  • They will spend a minimum of 75% of costs on Canadian-based individuals or services.
  • Their production is Canadian-produced.

Canadian Film or Video Production Services Tax Credit (PSTC)

For companies which are not eligible for CPTC, they may be considered for the Canadian Film or Video Production Services Tax Credit (PSTC), which allows for applications from foreign producers.  

Your client may be eligible if:

  • They employ Canadians on their production.
  • They carry out at least 50% of production activities through a permanent establishment in Canada.

Eligible corporations can receive a credit at a rate of 16% on qualified Canadian labour expenditures, for productions with costs exceeding $1 million.

Provincial programs offer additional support, and typically require applicants to be taxable Canadian corporations in the business of film, video, television, or digital media productions, with a permanent establishment in the relevant province. We have provided some examples of provincial credits below, though the list extends to other provinces as well.

BC

FIBC

Film Incentive British Columbia (FIBC) is a refundable income tax credit with a basic rate of 35% which allows film productions to claim a portion of their labour expenditures.

Your BC-based client may be eligible if:

  • Their production has a BC-based, Canadian producer.
  • 75% of the principal photography is taking place in BC.
  • 75% of production costs are being paid to BC-based individuals or corporations.

Corporations must be eligible for the basic credit in order to apply for any of the other five credits.

British Columbia Film and Television tax credit

BC’s film and television refundable tax credit provides support to qualifying domestic film or video productions in British Columbia with a basic rate of 35%.

Your BC-based client may be eligible if:

  • They have a permanent establishment in BC.
  • Their production has a BC resident producer.
  • 75% of the production costs are being paid to BC individuals or corporations.
  • Labout expenditures for their production are being paid to BC-based individuals.

The credit cannot be claimed alongside BCPSTC, and corporations must be eligible for the basic credit in order to apply for any of the other five credits.

British Columbia Production Services Tax Credit (BCPSTC)

BC’s refundable Production Services Tax Credit has a basic rate of 28%, and can only be claimed if the BC film and television tax credit is claimed for the same production.

Your BC-based client may be eligible if:

  • They have a permanent establishment in BC.
  • They primarily operate as a film or video production/production services business.
  • They have incurred eligible labour expenditures.

Ontario

Ontario Film & Television Tax Credit (OFTTC)

OFTTC can be claimed by Ontario-based productions for a basic rate of 35% of qualifying labour expenditures.

Your client may be eligible if:

  • Their production is predominately shot and posted in Ontario.
  • They have an agreement to broadcast the production in Ontario within two years of completion.
  • At least 75% of final costs are being spent on Ontario expenditures.
  • Their production is at least 30 broadcast minutes in length.
  • Their production consists of Canadian content.
  • They have incurred eligible labour expenditures, which include salaries and wages paid to Ontario residents.

Ontario Production Services Tax Credit (OPSTC)

OPSTC allows corporations to claim up to 21.5% of qualifying production expenditures incurred in Ontario.

Your client may be eligible if:

  • They are a Canadian of foreign-owned film or video producing corporation
  • They have a permanent establishment in Ontario
  • They have incurred expenses which are paid to Ontario-based individuals or corporations.  
  • Their production costs exceed $1 million.

The credit can be claimed in conjunction with the federal PSTC, but not with the OFTTC.

Ontario Interactive Digital Media Tax Credit (OIDMTC)

OIDMTC is a refundable tax credit which can be claimed by eligible products and digital games, with a focus on entertainment and educational products for children under 12.

Your client may be eligible if:

  • They are a Canadian corporation.
  • They have developed an eligible interactive digital media project at a permanent establishment in Ontario.
  • Their production presents information through at least two out of the following formats: text, sound, or images.

Corporations developing and marketing their own products are eligible for a credit for 40% of expenditures, while corporations that develop products under a fee-for-service arrangement are eligible for a 35% credit.

Alberta

Film and Television Tax Credit (FTTC)

The Film and Television Tax Credit is calculated at a 22% or 30% tax rate. In order to receive the full 30% credit, the production must have at least 50% Alberta-based ownership, have an Alberta-based producer, have an Alberta-based copyright, and spend at least 60% of production costs in Alberta or 70% of salaries on Alberta-based individual. 

Your client may be eligible for the basic tax credit if:

  • They are a taxable incorporated business in Alberta.
  • They are working on a new production.
  • Their production has total costs of $499,999 CAD or greater.
  • They have not received funding from Alberta production grants.

Interactive Digital Media Tax Credit (IDMTC)

IDMTC is a refundable tax credit calculated as 25% of eligible labour costs.

Your client may be eligible if:

  • They are paying taxes in Alberta.
  • They have a permanent establishment in Alberta. 
  • They have eligible wages between $50,000-$2 million.

The program has two annual intake windows. In order to receive the tax certificate, corporations must register as an interactive digital media corporation and submit eligible expenses.

Find out more

If you are a service provider and currently have clients that are eligible for any of these federal or provincial tax credits listed, or if you would like to learn more about tax credits available in other provinces, please reach out to us for assistance in gaining access to these credits.