Canadian Film or Video Production Tax Credit (CPTC)

Funding Snapshot

• Refundable corporate tax credit
• Focused on supporting film and video production
• Accepts applications each taxation year

Funding Details

The Canadian Film or Video Production Tax Credit (CPTC) provides eligible productions with a fully refundable tax credit, available at a rate of 25% of the qualified labour expenditure.

Eligible Expenditures

To be eligible for CPTC certification, a production must be a linear, non-interactive film or video production.

The qualified labour expenditures is the lower of the following two amounts:

• The eligible production cost for the production (equal to 60% of the total production costs, not including financing amounts considered assistance)
• The net labour expenditures for the production (equal to the total of all eligible labour expenditures minus amounts that are labour deferrals). Labour expenditures include:
  • Salaries or wages
  • Remuneration other than salary or wages
  • Reimbursements by a wholly-owned corporation to its parent

Eligibility Requirements

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.

Program Run

CPTC accepts applications within 24 months from the first taxation year end date following the commencement of principal photography.