Canadian Film or Video Production Tax Credit
Canada
Labour tax credit for producing Canadian films or videos
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Information and cultural industries
- Arts, entertainment and recreation
grant_single|grantors
- Government of Canada
- Canada Revenue Agency (CRA)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Refundable tax credit of 25% of qualified Canadian labour expenses on Canadian film and video production.
grant_single_labels|projects
This tax credit is intended for Canadian productions; however, specific eligible geographical areas are not detailed in the given context. Therefore, it generally applies to qualifying productions within Canada.
- Generally applies across all Canadian provinces and territories as administered by federal bodies.
grant_single|admissibleProjectsExample
$337,500
Production of a feature film exploring multiculturalism
$200,000
Creation of a web series capturing the essence of Montreal's local art scene
$175,000
Production of an indie film portraying the historical events
$225,000
Development of a documentary series on Canadian wildlife
$250,000
Development of a TV series set in the tech industry of Kitchener
$262,500
Creation of a children's animated series about environmental sustainability
grant_single_labels|admissibility
Eligibility for the Canadian film or video production tax credit is determined by specific criteria related to the applicant corporation.
- The corporation must be Canadian-owned and controlled.
- The production must meet the criteria of Canadian content as outlined by the Canadian Audio-Visual Certification Office.
- Only labour expenditures qualify for the tax credit, which cannot exceed 60% of the total production costs.
- The corporation can claim only one federal tax credit per production.
grant_eligibility_criteria|who_can_apply
To be eligible for the Canadian film or video production tax credit (CPTC), a corporation must be incorporated in Canada and primarily engaged in the business of Canadian film or video production. The production must meet specific Canadian content requirements, and the corporation must own the copyright of the production. Additionally, the production must involve an acceptable genre of Canadian programming, and a certain percentage of Canadian personnel must be used in key functional positions.
grant_eligibility_criteria|who_cannot_apply
This grant does not specify which companies or industries are excluded from eligibility based on their status or main activity. However, general restrictions may apply based on typical tax credit qualifications.
grant_eligibility_criteria|eligible_expenses
If eligible for the Canadian film or video production tax credit (CPTC), your corporation can get a refundable tax credit of 25% of your qualified labour expenditures. The qualified labour expenditures cannot be more than 60% of production costs (net of assistance).
- Refundable tax credit of 25% of qualified labour expenditures
- Qualified labour expenditures limited to 60% of production costs (net of assistance)
grant_eligibility_criteria|zone
The eligible geographic zone for the Canadian film or video production tax credit grant is Canada. The corporation must have a permanent establishment in Canada throughout the year to be eligible.
- Canada
grant_single_labels|criteria
There are evaluation and selection criteria for this grant. The eligibility criteria include:
- Production must be considered Canadian according to the Canadian Audio-Visual Certification Office
- Minimum Canadian content requirements must be met
- Production costs must meet certain thresholds
- Completion and delivery deadlines must be adhered to
grant_single_labels|register
- Step 1: Get a Canadian film or video production certificate (Part A) or a certificate of completion (Part B) from the Canadian Audio-Visual Certification Office (CAVCO).
- Step 2: Fill out the following forms and send them to the Canada Revenue Agency (CRA), along with your CAVCO certificate (or a copy):
- T2, Corporation Income Tax Return
- Form T1131, Canadian Film or Video Production Tax Credit
- Step 3: If you are making multiple claims, include all corresponding CAVCO or provincial certificates with your T2 return.
- Step 4: Keep all financial documents to support your claim.
- Step 5: If filing electronically, send your CAVCO certificate to the CRA using My Business Account or by mail to your CRA film services unit. If filing a paper T2 return, send the return and required documents to your tax centre.
- Step 6: After submission, the CRA’s film services unit will conduct a risk assessment and may select the claim for audit. Respond promptly to any CRA queries and provide any additional requested information.
grant_single_labels|otherInfo
If your claim is incomplete, the CRA will ask you to provide the missing information before it reviews your claim.
- Keep all financial documents to support your claim.
- Your claim is considered complete if Form T1131 and your CAVCO certificate are attached to your corporation’s T2 return.
- If filing electronically, you still need to send your CAVCO certificate to the CRA.
- Send your CAVCO certificate to the appropriate CRA film services unit based on the location of your corporation's books and records.
- Maintain your CAVCO certificates, tax slips, documents and records for at least six years.
- Respond promptly to CRA’s questions and provide additional information requested to avoid delays.
- The CRA aims to review T2 returns within 60 days without an audit and 120 days with an audit, meeting these standards at least 90% of the time.
- Use the Check CRA Processing Times tool to get an estimated completion time for your request.
- If selected for an audit, provide requested documents quickly to avoid processing delays.
- The CRA may ask for books, records, agreements, minute books, and other documents during the audit.
- The CRA usually limits its audit to a given year but may expand it to other years if necessary.
- Re-audits may occur if new information arises, reassessment is requested, another tax credit is claimed, the CAVCO certificate is revoked, or fraud/misrepresentation is identified.
- The CRA may select your T2 return for audit as part of its regular audit program.
- Object to an unfavorable assessment outcome by filing an objection for reasons such as dissatisfaction with the explanation, denied adjustment requests, or legal interpretation disputes.
- The Appeals Division will do an impartial review, and you can file an appeal with the Tax Court of Canada if still unsatisfied with the decision.
Apply to this program
Exploring the Canadian Film or Video Production Tax Credit
The Canadian film or video production tax credit (CPTC) is a governmental initiative designed to boost production activities within the nation, simultaneously fostering Canadian programming. By offering refundable tax credits on qualified labour expenditures, this program seeks to incentivize the creation of Canadian film and video content, thereby supporting the country's cultural sector and economic development.
In-depth Overview of the Canadian Film or Video Production Tax Credit (CPTC)
The Canadian Film or Video Production Tax Credit (CPTC) serves as a pivotal instrument in the landscape of Canadian media production. This program is co-administered by the Canada Revenue Agency and the Department of Canadian Heritage through the Canadian Audio-Visual Certification Office. Its primary purpose is to foster the domestic production ecosystem and to encourage an increase in Canadian programming that resonates with both local and international audiences. By providing a financial incentive equating to a 25% refundable tax credit on eligible labour expenditures—with these expenditures capped at up to 60% of the total production costs net of assistance—the CPTC effectively reduces the financial burden on production companies.
Qualifying for the CPTC could mean a considerable fiscal advantage for eligible corporations engaged in the production of Canadian film and video content. Unlike many other financial incentives, the CPTC does not impose a ceiling on the amount of tax credit that a production can claim, fostering an environment of creative and financial flexibility. This feature is particularly valuable for larger productions with extensive budgets and for projects that rely heavily on qualified labor components.
This tax credit is integral not only to bolstering economic activity within Canada’s creative sectors but also to ensuring that Canadian stories and perspectives are highlighted in the global cultural narrative. A spectrum of production endeavors from small independent documentaries to large scale feature films can benefit from the CPTC, encouraging a diverse array of content that reflects Canada’s cultural diversity and heritage.
Eligible corporations need to ensure that their projects align with the CPTC's specific conditions to take full advantage of this tax credit. The emphasis on qualified labour expenditures means that productions must strategize financially, ensuring they allocate budgets effectively and maintain compliance with the program’s stipulations. This incentivizes companies to invest in workforce talent and development, aligning their production strategies with the broader goal of enhancing Canadian employment within the creative industries.
The impact of the CPTC goes beyond mere financial support; it acts as a catalyst for industry growth, innovation, and international collaboration. Productions facilitated by this tax credit often showcase Canadian locations, talent, and stories to audiences worldwide, contributing not only to economic returns but also to cultural exchanges that bolster Canada’s reputation as a dynamic and vibrant production hub.
In conclusion, the Canadian film or video production tax credit is a significant catalyst in the support and promotion of Canadian media productions. By alleviating some of the financial pressures associated with film and video production, the CPTC empowers producers to focus on creativity and quality, enhancing the global presence and influence of Canadian cinema and television.
