Canadian Film or Video Production Tax Credit (CPTC)

To be eligible for the CPTC, the following conditions must be met:

• The production company must be a prescribed taxable Canadian corporation whose activities consist primarily of carrying on a Canadian film or video production business, through a permanent establishment in Canada.
• Only the production company or a prescribed person may own copyright in the production during the 25-year period beginning when the production is complete and commercially exploitable
• The production must obtain a minimum number of points given for key creative positions occupied by Canadian citizens or permanent residents, and obtain certain points that are mandatory
• All producer-related personnel must be Canadian (except in limited circumstances)
• At least 75% of the total of all costs for services related to producing the production must be payable to individuals who are Canadian
• At least 75% of the total of all post-production costs for a production must be incurred for services provided in Canada
• Only the production company of a prescribed person may control the initial licensing of commercial exploitation rights for the production
• Either a Canadian distributer or a CRTC-licensed broadcaster must provide written confirmation that the production will be shown in Canada within the two-year period beginning when the production is complete and commercially exploitable
• The production cannot be distributed in Canada by a non-Canadian entity within the two-year period beginning when the production is complete and commercially exploitable
• The production company or a related prescribed taxable Canadian corporation must receive an acceptable share of revenues from the exploitation of the production in non-Canadian markets.