Film & TV Tax Credits
Today, there are various government agencies at the federal and provincial level that provide financial incentives for Canadian film and television producers through tax credits, grants, and loans.
At the federal level, there are two tax credit programs known as the Canadian Film or Video Productions Tax Credit (CPTC) and the Canadian Film or Video Production Services Tax Credit (PSTC), while at the provincial level, most Canadian provinces have their own film and television tax credit programs with different rates and percentages specific to the region.
The federal Canadian Film or Video Productions Tax Credit (CPTC) and the Film and Video Production Services Tax Credit (PSTC) are both administered jointly by The Canadian Audio-Visual Certification Office (CAVCO) and Canada Revenue Agency (CRA). These programs are designed to support both domestic and foreign producers on service productions and Canadian-content productions. CPTC offers a tax credit of up to 25% of eligible expenditures, while PSTC offers up to 16%. To be eligible for CPTC, the production must have Canadian copyright ownership. Productions that do not meet this requirement may qualify for the production services PSTC.
In addition to the federal credits, many Canadian provinces and territories have their own tax credit programs designed to support the film and television industry in their respective regions.
Below is a summary of all tax incentives currently available in Canada to film/tv productions:
| FEDERAL | |
| Canadian Film or Video Production Tax Credit (CPTC) | 25% of eligible labour expenditures |
| Production Services Tax Credit (PSTC) | 16% of eligible labour expenditures |
| ALBERTA | |
| Film and Televisions Tax Credit (FTTC) | 22% or 30% of eligible production costs |
| BRITISH COLUMBIA | |
| Film Incentive BC (FIBC) – Basic | 35% of eligible production costs |
| Film Incentive BC (FIBC) – Regional | 12.5% of eligible labour costs that occur within a prescribed area |
| Film Incentive BC (FIBC) – Distant Location | 6% of eligible labour expenditures that occur within a prescribed area |
| Film Incentive BC (FIBC) – Digital Animation, Visual Effects and Post-Production (DAVE) | 16% of eligible labour costs directly attributable to digital animation, visual effects or eligible post-production activities |
| Film Incentive BC (FIBC) – Scriptwriting | 35% of eligible labour directly attributable to the development of script material |
| Film Incentive BC (FIBC) – Film Training | 30% of amount paid to BC-based individual registered in an approved training program |
| Production Services Tax Credit (PSTC) – Basic | 28% of eligible production costs |
| Production Services Tax Credit (PSTC) – Regional | 6% of eligible labour expenditures that occur within a prescribed area |
| Production Services Tax Credit (PSTC) – Distant Location | 6% of eligible labour expenditures that occur within a prescribed area |
| Production Services Tax Credit (PSTC) – Digital Animation, Visual Effects and Post-Production (DAVE) | 16% of eligible labour costs directly attributable to digital animation, visual effects or eligible post-production activities |
| MANITOBA | |
| Manitoba Cost-of-Salaries Tax Credit | 45% of eligible labour (increase to 65% by combining with 10% Frequent Filming bonus, 5% Manitoba producer bonus, and 5% Rural and Northern Bonus) |
| Manitoba Cost-of-Production Tax Credit | 30% of eligible labour (increase to 38% by combining with 8% bonus for co-producing with Manitoba production company) |
| NEW BRUNSWICK | |
| NB Film, Television & New Media Industry Support Program – Development Incentive [**grant] | 40-50% of approved development budget |
| NB Film, Television & New Media Industry Support Program – Development Incentive [**grant] | 40% of eligible labour OR 25% of eligible expenditures |
| NEWFOUNDLAND AND LABRADOR | |
| Film and Video Tax Credit | 40% of eligible labour costs |
| All Spend Tax Credit | 40% of total qualified production costs |
| NORTHWEST TERRITORIES | |
| NWT Film Rebate Program – NWT Spend [**rebate] | 40% rebate for goods and services for scripted projects, 30% rebate for goods and services for non-scripted projects, 20% rebate for goods and services for commercial projects |
| NWT Film Rebate Program – NWT Travel [**rebate] | 50% rebate on scheduled airline travel within NWT |
| NOVA SCOTIA | |
| Nova Scotia Film & Television Production Inventive Fund – Stream 1 (50-100% Nova Scotian ownership and control of production) [**grant] | 26% on eligible expenditures (+ up to 10% for expenditures within a prescribed area) |
| Nova Scotia Film & Television Production Inventive Fund – Stream 2 (<50% Nova Scotian ownership and control of production) [**grant] | 25% on eligible expenditures (+ up to 10% for expenditures within a prescribed area) |
| NUNAVUT | |
| Nunavut Labour Rebate [**rebate] | 17-27% of eligible costs |
| ONTARIO | |
| Film and Television Tax Credit (OFTTC) | 35% of eligible labour expenditures (+ 10% regional labour bonus) |
| Production Services Tax Credit (OPSTC) | 21.5% of eligible production expenditures |
| Computer Animation and Special Effects Tax Credit | 18% of eligible labour expenditures related to animation or visual effects |
| Interactive Digital Media Tax Credit | |
| PRINCE EDWARD ISLAND | |
| Prince Edward Island Film Production Fund [**rebate] | 32% of eligible expenditures (+ production bonuses) |
| QUEBEC | |
| Refundable Tax Credit for Quebec Film Production Services | 25% for qualified expenditures |
| Refundable Tax Credit for Quebec Film Production Services – Computer-aided animation and special effects | 16% of qualified expenditures |
| SASKATCHEWAN | |
| Saskatchewan Film and Television Development Grant [**grant] | 50-75% of total development budget depending on phase |
| Saskatchewan Feature Film & Television Production Grant [**grant] | 25-30% of eligible expenditures (+ bonuses for frequent filming, rural, and post-production) |
Contact us for more information on Film & TV Tax Credits