Ontario Film & Television Tax Credit (OFTTC)
The OFTTC is a refundable tax credit based upon eligible Ontario labour expenditures incurred by a qualifying production company with respect to an eligible Ontario production. The OFTTC is generally “harmonized” with the Canadian Film or Video Production Tax Credit.
Grant Deadline
Deadline not available
Funding Amount
35% of The OFTTC is generally calculated as 35% of the eligible Ontario labour expenditures incurred by a qualifying production company with respect to an eligible Ontario production. An enhanced credit rate of 40% on the first $240,000 of qualifying labour expenditure is available for first-time producers. An enhanced credit rate of 40% on the first $240,000 of qualifying Ontario labour, to a maximum of $12,000, is available for first-time productions.
Type of Grant
Tax Credit
Sectors
Film, Media
Demographics
Incorporation
For Profit
Perks
Region Restriction
This grant is restricted to whole of Canada
Keywords
tax credit, production, Film project, refundable credit, expenditures incurred, Media/Arts
Age Restriction
This grant is age restricted from 18 to 100
Eligibility and Requirements
WHO IS ELIGIBLE?
A qualifying production company is a Canadian corporation which is Canadian-controlled, has a permanent establishment in Ontario, and files an Ontario corporate tax return. In addition, the individual producer of the production must have been an Ontario resident for tax purposes at the end of both of the two calendar years prior to commencement of principal photography.
WHAT IS AN ELIGIBLE PRODUCTION?
An eligible Ontario production is a production which:
- has six Canadian content points (unless it is an official treaty co-production)
- is predominantly shot and posted in Ontario (Note: There are exceptions for documentaries, interprovincial co-productions and international treaty co-productions)
- spends at least 75% of its total final costs on Ontario expenditures
- if for television, is suitable for a minimum 30-minute time slot (except children’s programming)
- where principal photography commenced before November 1, 2022, has an agreement in writing with an Ontario-based, Canadian distributor or a CRTC-licensed broadcaster to be shown in Ontario within two years of completion (broadcast must occur between 7:00 p.m. and 11:00 p.m., except for children’s programming)
- where principal photography commenced on or after November 1, 2022, the production was made for commercial exploitation by one or more of the following means:
- Theatrical distribution: productions shown commercially in cinemas;
- Television broadcast: productions made available via traditional television broadcast in a scheduled timeslot; or,
- Alternative means: productions made available online (download or streaming), by video-on-demand, or on physical medial (e.g., DVD)
- where principal photography commenced on or after November 1, 2022, has an agreement in writing, for consideration at fair market value, to have the production shown in Ontario within two years after it is completed. The entity with whom the agreement must be made differs depending on the means of commercial exploitation:
- For productions distributed theatrically, the agreement must be with a Canadian distributor having a permanent establishment in Ontario;
- For productions broadcast on television, the agreement must be with a Canadian broadcaster;
- For productions made available by alternative means, the agreement must be with an entity that makes film or television productions available for viewing by the public. Note that this entity is not required to be Canadian so long as the production is made available for viewing in Ontario. However the distribution rights for the production can only be exploited by a Canadian corporation for two years after the production is completed.
- is not in an excluded genre (such as news or current affairs, talk shows, game shows, sports shows, awards shows, fundraising shows, reality television)
- where principal photography began after August 24, 2023, there is a screen credit that includes acknowledgement of Ontario tax credit support in the production’s end credits.
Additional Rules for alternative means productions (over and above the general eligibility requirements):
OFTTC production made available by alternative means are subject to additional eligibility rules:
Production budget requirements:
- The total budget must be at least $250,000 if the production is made commercially available under an agreement with a third party;
- The total production budget must be at least $350,000 if the production is made commercially available under an agreement with a related party;
- The total production budget must also meet or exceed $2,000 per minute of the production’s completed runtime
Content exclusions:
In addition to types of productions that are excluded from OFTTC eligibility regardless of exhibition method, productions made available by alternative means are also excluded if they are:
- An instructional production, including instructional videos or tutorials related to cooking, crafting, renovating, beauty, fitness, parenting, careers or finance,
- A review or a commentary, opinion or advice video,
- Educational content related to a curriculum or course of study, other than a production directed primarily at children under the age of 12,
- A vlog, travelogue, video journal or diary, home movie or a production that primarily consists of recreational content,
- A music video,
- A production in respect of esports, gaming or gambling,
- A prank video,
- A speech, sermon, presentation or discourse,
- Coverage of a conference, gathering, ceremony or event,
- A production that primarily consists of content from another film or television production or an interactive digital media production previously released to the public, or
- A production all or substantially all of which consists of user-generated footage
New Screen Credit Requirement For All Productions with Principal Photography After August 24, 2023:
Productions that begin principal photography after August 24, 2023 are required to include an acknowledgement of Ontario tax credit support in the production’s end credits. For a series, the acknowledgement is required in the end credits of each episode for which the tax credit is claimed.
The following elements must be included:
- The Province of Ontario wordmark logo;
- The Ontario Creates wordmark logo; and
- Text stating “Produced with film and television tax credit assistance from the Government of Ontario”
Image files containing the Province of Ontario logo and the Ontario Creates logo combined in a manner that meets Ontario’s visual identity rules can be accessed on Ontario Creates website at: https://www.ontariocreates.ca/about-us/ontario-creates-logo. If you have difficulty accessing these files or have any questions regarding proper use, please contact: communications@ontariocreates.ca.
WHAT EXPENDITURES ARE ELIGIBLE?
Eligible Ontario labour expenditures consist of:
- Salaries and wages paid to Ontario residents;
- Remuneration paid to:
- corporations that are personal service companies subject to tax in Ontario for the services of an Ontario resident,
- sole proprietors or freelancers subject to tax in Ontario
- partnerships, for the services of a partner subject to tax in Ontario, and
- taxable Canadian corporations with a permanent establishment in Ontario for the services of their employee(s) who are Ontario residents; and
- Reimbursements by a wholly-owned production company to its parent company for labour expenditures, as above, that were paid by the parent company on behalf of the production company.
Ontario residents are individuals who were resident in Ontario for tax purposes at the end of the calendar year prior to commencement of principal photography. The labour expenditures of a corporation for the purposes of the OFTTC must be reasonable and must be included in the cost of the production.
Labour expenditures must not only be incurred but must also be paid in the taxation year (or within 60 days after the end of the taxation year) for which they are being claimed.
Eligible labour expenditures include those incurred from the production commencement time (PCT) until the end of post-production. Productions can claim eligible labour expenditures as early as two years prior to the commencement of principal photography. This may include labour expenditures for script development.
Grant Application website
https://ontariocreates.ca/tax-incentives/ofttc
Contact
CONTACT
- Tax Credits & Financing Programs
- 175 Bloor Street East
- South Tower Suite 501
- Toronto ON M4W 3R8
- 416-642-6659
- taxcredits@ontariocreates.ca