BC book publishing tax credit

This tax credit provides refundable financial support to qualifying book publishing corporations in British Columbia by leveraging federal contributions. It aims to enhance the financial stability of the regional book publishing industry while supporting growth and sustainability.

• Refundable tax credit up to 90% of the base Support for Publishers contributions received in the tax year.
• The tax credit is applied against the total income tax payable before a refund is issued.
• There are no provisions for carry-back or carry-forward of the credit.

Eligibility for the book publishing tax credit is determined by specific criteria related to the corporation's business operations and control structure.

• The corporation must be a Canadian-controlled corporation, defined under sections 26 to 28 of the Investment Canada Act.
• The principal business of the corporation must be book publishing.
• The corporation must offer books for retail sale, enter into contractual agreements with authors or copyright holders, and assume financial risks associated with book production and marketing.
• The corporation must carry on business primarily through a permanent establishment in B.C., meaning it has a permanent establishment only in B.C. or pays more than 50% of its salaries and wages to employees of permanent establishments in B.C. during the taxation year.
• The corporation must receive a base amount of Support for Publishers contributions under the federal Canada Book Fund before April 1, 2026.
• The corporation must not be exempt from tax under section 27 of the Income Tax Act.
• The corporation must not be controlled directly or indirectly by persons who are exempt under section 27 of the Income Tax Act or Part I of the Income Tax Act (Canada).

Who is eligible?

Who is not eligible

This tax credit is not available to certain companies based on their tax status or control structure. Specifically, companies that are tax-exempt or controlled by tax-exempt individuals are not eligible.

• Companies exempt from tax under section 27 of the Income Tax Act.
• Companies controlled directly or indirectly by persons who are exempt under section 27 of the Income Tax Act or Part I of the Income Tax Act (Canada).

Eligible expenses

The book publishing tax credit supports the activities of Canadian-controlled book publishing corporations operating primarily in British Columbia. These activities are directly related to the business of book publishing and include the following:

• Offering books for retail sale.
• Entering into contractual agreements with authors or copyright holders.
• Assuming financial risks associated with the production and marketing of books.

Eligible geographic areas

This grant applies to book publishing corporations that primarily operate within a designated geographical area. Eligible locations are confined to ensure that the benefits of the program are locally targeted.

• Businesses with a permanent establishment located exclusively within British Columbia (B.C.), Canada.
• Corporations where more than 50% of employee salaries and wages are paid in British Columbia (B.C.), Canada.

Book publishing tax credit provides financial support to Canadian-controlled book publishing corporations in B.C. adhering to specific eligibility criteria.

• The credit is available until April 1, 2026.
• Claim must be filed within 18 months of receiving Support for Publishers contributions.
• Deadline extension for claims required between March 13, 2020 and December 30, 2020 until December 31, 2020.
• The credit must first be applied against total income tax payable.
• No carry-back or carry-forward provisions for the tax credit.