Film and Video Tax Credit
NL, Canada
Tax credit for film production in Newfoundland and Labrador
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Tax Credits
grant_single|eligibleIndustries
- Arts, entertainment and recreation
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- Government of Newfoundland and Labrador
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Get a refundable tax credit of 40% when you hire local labour or 25% of total production costs for films produced in the province.
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The Film and Video Tax Credit supports projects focusing on the production of local film and video content in Newfoundland and Labrador. These projects encompass various stages of film production, ensuring significant local employment and economic contribution to the region's film industry.
- Production of local film and video projects.
- Engagement of local labor for film production activities.
- Execution of financial and strategic planning for film projects.
- Completion and reporting of production financial statements and cost reports.
grant_single|admissibleProjectsExample
$ 52,000
Creating a short film featuring local folklore
$ 76,000
Developing a TV series celebrating artists of Gander
$ 68,000
Creating an animated series based on legends of Happy Valley-Goose Bay
$ 120,000
Producing a biographical film about local hero from Grand Falls-Windsor
$ 160,000
Producing a feature film about the fishing industry
$ 90,000
Producing a local documentary about the history of St John's
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Eligibility for the Film and Video Tax Credit requires specific compliance with labour and financial criteria.
- The corporation must apply for eligibility to the Newfoundland and Labrador Film Development Corporation before production starts.
- The corporation must pay at least 25% of its salaries and wages to residents of Newfoundland and Labrador.
- Eligible projects must be local film productions.
- The corporation is subject to a tax credit limit of $5 million for productions beginning on or after July 1, 2021.
- The corporation is no longer restricted by a limit on asset size in conjunction with associated corporations.
grant_eligibility_criteria|who_can_apply
This grant is aimed at corporations involved in the local film and video industry, focusing on productions employing provincial talent and contributing to the local economy. However, the specific evaluation and selection criteria for projects under this tax credit beyond the eligibility conditions are not detailed in the provided context.
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This grant opportunity is designed to support film and video production corporations that engage in local projects by offering a refundable tax credit. Although the context does not explicitly list eligible projects or activities, it implies a focus on film and video productions involving local labour.
- Film production involving local labour resources.
- Video production engaging provincial talent and technicians.
- Collaborative productions that promote regional stories or settings.
- Projects exploring innovative filming techniques using local expertise.
grant_eligibility_criteria|zone
The Film and Video Tax Credit is catered to support corporations engaged in film projects within the provincial jurisdiction. The focus is on productions employing residents and incurring costs locally as dictated by the development corporation.
- Newfoundland and Labrador.
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There are evaluation and selection criteria for the Film and Video Tax Credit grant in Newfoundland and Labrador.
- Applicants must first apply for eligibility to the Newfoundland and Labrador Film Development Corporation prior to production.
- Corporations must pay at least 25% of salaries and wages to residents of the province.
- The corporation must submit financial statements and cost reports for final approval.
- The project must meet the required local labour costs and production expenses.
- Overall project feasibility and impact on the local film industry may also be considered.
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Here are the steps to apply for the Film and Video Tax Credit:
- Step 1: Application for Eligibility
- Contact the Newfoundland and Labrador Film Development Corporation to initiate the eligibility process before the commencement of production.
- Complete and submit any required eligibility forms or documentation.
- Receive confirmation of eligibility for your film project.
- Step 2: Complete Production
- Conduct your film project’s production as per the plan and guidelines.
- Ensure that at least 25% of salaries and wages are paid to residents of the province.
- Step 3: Prepare Financial Documents
- Finalize financial statements and cost reports upon project completion.
- Ensure that documentation aligns with the specified eligible local labour costs and production costs.
- Step 4: Submit Tax Credit Application
- Prepare the tax credit application, ensuring all required documents are included.
- Submit the completed application to the Tax Administration Division of the Department of Finance.
- Step 5: Await Approval and Certification
- Wait for the Department of Finance to review and approve your tax credit application.
- Upon approval, obtain the tax credit certificate.
- Step 6: Attach Certificate to T2 Return
- Attach the tax credit certificate to the corporation’s T2 Corporate Income Tax return.
- Submit the T2 return with the attached tax credit certificate.
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Here are additional relevant details for this tax credit:
- The tax credit applies at a rate of 40% of eligible local labor costs but is capped at 25% of the total production costs.
- The current corporation credit limit of $5 million is for productions beginning on or after July 1, 2021.
- There is no longer a restriction on the production corporation and any associated corporations having assets less than $25 million.
- The credit certificate must be attached to the T2 return for the corporation to claim the tax credit.
Apply to this program
Empowering Local Film Productions in Newfoundland and Labrador
This tax credit offers financial incentives to local film projects by covering a significant portion of eligible labour costs. The revamped structure aims to provide greater support and remove earlier financial and asset restrictions, facilitating increased development within the local industry.
A Deep Dive into the Film and Video Tax Credit
The Film and Video Tax Credit in Newfoundland and Labrador has become a pivotal financial instrument for local filmmakers, ensuring that creative ideas can transition from the drawing board to the big screen with financial ease. This support system is structured to cater to the unique needs of film and video production corporations within the region by offering a robust refundable credit. Particularly, this tax credit rebates up to 40% of eligible local labour costs, providing a strong incentive for companies to invest in local talent and resources, thereby bolstering the regional economy and cultural expression. Additionally, by not exceeding a cap of 25% of total production costs, the tax credit ensures a broad spread of benefit across different areas of production expenditure.
The progressive increase in the maximum allowable claim—from $3 million in earlier budgets to the current cap of $5 million—represents the government's commitment to nurturing the creative industries as a significant economic driver. This cap ensures that larger projects do not monopolize resources, thus allowing smaller and medium enterprises to flourish. The removal of the previously imposed asset cap in the 2005 budget further broadens eligibility, inviting larger corporations to partake in this financial opportunity without the limitations of asset-based eligibility criteria.
A noteworthy criterion is the condition that at least 25% of salaries and wages must be directed towards province residents, cementing the credit's role in boosting local employment and skill development. This stipulation creates a cycle of investment in local expertise, establishing a skilled base that can fulfill the laborious needs of the film industry efficiently and creatively.
Additionally, the process for obtaining this tax credit involves a thorough two-step application. Initially, productions must seek eligibility approval from the Newfoundland and Labrador Film Development Corporation prior to commencing production. This ensures that all projects receiving funding align with the province's artistic and economic objectives. Following completion, productions must present finalized financial statements and cost reports to apply for the credit, showcasing accountability and sound financial management in spending.
Once these hurdles are cleared, and the Department of Finance approves the project, corporations receive a tax credit certificate. This document is crucial as it must accompany the corporation's T2 return to officially claim the credit. This structure reinforces a comprehensive regulatory framework while fostering an environment of creativity, sustainability, and economic growth within the province.
Ultimately, Newfoundland and Labrador’s Film and Video Tax Credit signifies more than just fiscal relief; it represents a governmental vow to invigorate a flourishing, diverse, and sustainable film industry. By supporting both smaller local endeavors and larger projects without previous restrictions, it is a catalyst for both artistic expression and economic prosperity.
