Canadian Film or Video Production Tax Credit (CPTC)

Who is eligible?

• Canadian-owned, taxable corporations that are primarily in the business of Canadian film or video production.

Who is not eligible

• Tax-exempt corporations.
• Corporations controlled by one or more tax-exempt persons.
• Corporations that are not primarily in the business of Canadian film or video production.

Eligible expenses

• Qualified labour expenditures.

Eligible geographic areas

• Corporations with a permanent establishment anywhere in Canada.

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

• Get a Canadian film or video production certificate (Part A) or a certificate of completion (Part B) from CAVCO.
• Fill out Form T2, Corporation Income Tax Return, and Form T1131, Canadian Film or Video Production Tax Credit, along with your CAVCO certificate or a copy.
• Submit the T2 return and attachments to your tax centre.
• If filing electronically, send a paper copy of the CAVCO certificate to the appropriate film services unit using My Business Account or by mail.
• If filing a paper T2 return, send the return and required documents to your tax centre.

• After the Canada Revenue Agency receives the claim, it conducts a risk assessment and may select it for audit.
• If a claim is selected for audit, the applicant must provide requested documents to support the claim.
• The Canada Revenue Agency may review a claim again if there is new information, a reassessment is requested, another film or media tax credit is requested for the same production, the CAVCO certificate is revoked, or fraud or misrepresented facts are identified.
• If the applicant files an objection, the Appeals Division will conduct an impartial review of the file.

• There is no maximum limit on the amount of tax credit that can be received for a production.
• A separate claim (Form T1131) must be completed for each accredited production, but for television series, a single form is allowed for episodes certified as a series.
• All related documentation, including CAVCO certificates, must be retained for at least six years.
• Respond promptly to any CRA requests for additional information to avoid processing delays.