Ontario Book Publishing Tax Credit
ON, Canada
Tax credit for book publishing in Ontario
grant_single|update January 24, 2025
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
grant_single|grantors
- Government of Ontario
- Ontario Creates
grant_single|status
grant_card_status|open
grant_single_labels|preview
Ontario book publishers may apply for a refundable 30% tax credit, with a maximum of $30,000 per book title, for pre-press, printing and marketing expenditures.
grant_single_labels|terms_and_conditions
This tax credit provides financial relief to eligible book publishing corporations in Ontario, facilitating their publishing activities without a presumption of specific project funding modalities. It calculates a refundable tax credit based on eligible expenditures, aimed at encouraging a robust literary market.
- A refundable tax credit equivalent to 30% of eligible Ontario expenditures.
- Maximum tax credit cap of $30,000 per book title.
- Eligible costs include pre-press, printing, marketing, and digital/electronic publishing expenses.
- Costs must be associated with eligible literary works and incurred by a qualifying corporation.
grant_single_labels|projects
The Ontario Book Publishing Tax Credit (OBPTC) is designed to support Ontario-based book publishing corporations by providing financial assistance for specific book publishing activities. Eligible projects include expenditures related to the preparation and production of literary works in both print and digital formats.
- Preparation of a literary work for publication in print.
- Production of digital or electronic versions of a literary work.
- Expenditures on marketing efforts associated with publishing an eligible literary work.
- Costs involved in transferring a prepared digital version into a form suitable for distribution.
- Eligible Ontario pre-press and printing expenditures incurred by the book publisher.
grant_single|admissibleProjectsExample
$ 30,000
Publishing a historical novel with extensive digital marketing campaign
$ 30,000
Printing and marketing a graphic novel series
$ 30,000
Publishing a fantasy novel series with targeted social media marketing
$ 30,000
Publishing an educational children's book with in-school promotions
$ 30,000
Publishing a collection of poetry with live reading events
$ 30,000
Releasing a cookbook with high-quality images and online promotions
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the corporation's control, operations, and publication activities.
- The applicant must be a Canadian-controlled corporation, as defined under sections 26 to 28 of the Investment Canada Act (Canada).
- The corporation must carry on a book publishing business primarily through a permanent establishment in Ontario.
- The corporation must file an Ontario corporate tax return.
- More than 50% of its taxable income must be allocated to Ontario in the taxation year the credit is being claimed.
- The corporation must have published at least two books in the previous year, with certain exceptions.
grant_eligibility_criteria|who_can_apply
The Ontario Book Publishing Tax Credit (OBPTC) is available to qualifying corporations that must meet the following criteria:- Canadian-controlled corporation: The corporation must be Canadian-controlled as defined under sections 26 to 28 of the Investment Canada Act.- Permanent Establishment in Ontario: The corporation must carry out its book publishing business primarily through a permanent establishment in Ontario.- Ontario Corporate Tax Return: The corporation must file an Ontario corporate tax return and allocate more than 50% of its taxable income to Ontario in the year the credit is claimed.- Book Publication History: The corporation must have published at least two books in the previous year. Exceptions to this criterion exist for Ontario book publishers who have transferred, amalgamated, or wound up their business.Eligible literary works must adhere to additional criteria such as being authored by eligible Canadian authors, containing a high percentage of new material, belonging to eligible writing categories, and meeting specifications regarding the ratio of text to images and book length.
grant_eligibility_criteria|eligible_expenses
The Ontario Book Publishing Tax Credit (OBPTC) provides support for various activities associated with the publication of eligible literary works. These activities must be undertaken by qualifying corporations engaging in book publishing within Ontario.
- Preparation of a literary work for publication in both print and digital or electronic formats.
- Production of printed versions of a book.
- Transferring a prepared digital or electronic version of a literary work into a form suitable for distribution.
grant_eligibility_criteria|zone
This grant is available to Canadian-controlled corporations primarily operating through a permanent establishment in Ontario. The eligible locations ensure that the tax credit supports businesses contributing to Ontario's literary and cultural development.
- Corporations with a permanent establishment in Ontario.
grant_single_labels|criteria
There are evaluation and selection criteria for the Ontario Book Publishing Tax Credit (OBPTC) grant. The assessment is based on the eligibility of Ontario pre-press, printing, and marketing expenditures, as well as the publishing of electronic or digital versions of eligible literary works.
- Eligible expenditures must be incurred by a qualifying corporation primarily operating in Ontario.
- The literary work must be written by eligible Canadian authors, contain new material, and belong to eligible categories of writing.
- The book publishing company must meet specific requirements, including publishing at least two books in the previous year and having more than 50% of taxable income allocated to Ontario.
- Additional criteria include the length and format of the literary work, as well as the exclusion of certain ineligible publications.
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Obtain Certificate of Eligibility
- Contact Ontario Creates to apply for a Certificate of Eligibility for each book title.
- Ensure all necessary documents and declarations, such as the Author Citizenship & Residency Declaration, are accurately completed and submitted.
- Step 2: Prepare Tax Documentation
- Ensure all relevant financial records related to eligible expenditures are properly documented.
- Prepare the T2 Corporation Income Tax return and the completed Schedule 564 (T2SCH564) for each eligible literary work.
- Step 3: Submit Application to CRA
- File your T2 Corporation Income Tax return electronically or by mail to the Canada Revenue Agency (CRA).
- Include the Ontario Creates certificate of eligibility and a completed T2SCH564 with your T2 Corporation Income Tax return.
- Step 4: Upload Supporting Documents
- Use the "T2 attach-a-doc" feature in your CRA-approved tax software to submit your certificate of eligibility and other documentation electronically.
- If not filed within 24 hours of the original submission, register for My Business Account and upload the documents through the MyBA portal.
- Step 5: Confirmation and Follow-up
- Receive confirmation of submission from the CRA, ensuring that your application is complete and under review.
- Contact Ontario Creates or CRA in case of queries or issues that arise during review.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- A Certificate of Eligibility from Ontario Creates is required to file with the CRA for the tax credit.
- There is a 0.15% administration fee on eligible expenditures for the application, with a minimum of $50 and a maximum of $200.
- Older publications requiring a minimum print of 500 copies (pre-2020) will still adhere to that rule, yet no bound edition is required post-2019.
- The OBPTC does not consider several types of government funding, such as the Canada Book Fund and Block Grants, as assistance to grind the tax credit.
- Incomplete submissions will delay processing, as the CRA requires a completed application to proceed.
- Certification applications sent more than 24 months after the first year-end of the claim incur an additional $100 fee.
- Judicial review is necessary if disputing eligibility as objections are not part of the standard appeal process with Ontario Creates or the CRA.
