Refundable Tax Credit for Film Production Services

The refundable production services tax credit is a tax measure designed to encourage the shooting, in Quebec, of foreign productions and the production of technical services such as animation and special effects.

Grant Deadline

Deadline not available

Funding Amount

$1,500,000 _{Up to 36% Qualified labour costs}

Type of Grant

Grant, Tax Credit, Hiring

Sectors

Arts & Culture, Film, Music, Entertainment

Demographics

Incorporation

For Profit

Perks

Region Restriction

This grant is restricted to whole of Canada

Keywords

Age Restriction

This grant is age restricted from 18 to 100

Eligibility and Requirements

Eligible fiction films or documentaries include virtual reality (RV) and augmented reality (AR) productions. It will be possible to offer VR or AR productions for free without them being deemed advertising. This type of production will be eligible to the tax credit for film production services if it is an original production or an extension or supplement to another production that aims to provide additional information or entertainment for the main production.

❖ Minimum budget requirement: $250,000 CAD

❖ Production can be partially done in Québec

❖ No broadcast or showing obligation

❖ Eligible corporation:

➢ Corporation established in Québec whose activities are primarily in film and television business;

➢ Corporation does not have to be controlled by Québec residents;

➢ Excluded corporations: ▪ tax exempted corporation; ▪ controlled by tax exempted corporation; ▪ holder of a broadcasting licence issued by the CRTC or corporation that is not at arm’s length to a corporation which holds such a licence1 .

❖ All-spend production costs: Provided they relate to services directly attributable to the completion of the qualified production rendered in Québec in relation to the production stages running from screenplay to postproduction and they are reasonable in the circumstances, the qualified costs include: ➢ Qualified labour costs: wages and salaries, including the associated payroll taxes incurred by the corporation, regarding an employee as well as the cost of any service contract incurred by the corporation with a supplier of services2 ;

➢ Cost of qualified properties, costs incurred by the corporation regarding the acquisition or rental, in Québec, of tangible properties (including software), in relation to a qualified production provided that: ▪ they relate to properties used in Québec in relation to the production stages running from screenplay to postproduction;