Ontario Book Publishing Tax Credit
ON, Canada
Tax credit for book publishing in Ontario
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|projects
This grant is specifically designed for companies that operate through a permanent establishment in Ontario. Eligibility is tied to the regional focus to support local literature industry development.
- Companies carrying on a book publishing business primarily through a permanent establishment in Ontario.
grant_single|admissibleProjectsExample
$30,000
Hamilton
Publishing an educational children's book with in-school promotions
$30,000
London
Publishing a collection of poetry with live reading events
$30,000
Ottawa
Releasing a cookbook with high-quality images and online promotions
$30,000
Toronto
Publishing a historical novel with extensive digital marketing campaign
$30,000
Windsor
Printing and marketing a graphic novel series
$30,000
Mississauga
Publishing a fantasy novel series with targeted social media marketing
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
The Ontario Book Publishing Tax Credit (OBPTC) covers certain costs incurred in the preparation and production of literary works.
- 100% of the costs of preparing a literary work for publication in print and digital or electronic formats.
- 50% of the production costs related to publishing a printed version of a book.
- Costs related to transferring a digital or electronic version of a literary work into a form suitable for distribution.
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.
Apply to this program
Maximize Book Publishing Potential with Ontario Book Publishing Tax Credit
The Ontario Book Publishing Tax Credit (OBPTC) is a valuable resource for Canadian-controlled book publishing companies operating within Ontario, aimed at offsetting costs for publishing eligible literary works through refundable tax credits. This initiative encourages and supports the rich cultural landscape of Ontario through financial incentives to sustain and grow the literary publishing sector.
Understanding the Ontario Book Publishing Tax Credit Mechanism
The OBPTC is structured to enhance the financial feasibility of book publishing in Ontario by offering a 30% refundable tax credit on eligible pre-press, printing, and marketing expenditures incurred by qualifying corporations for each book title, with a cap of $30,000 per title. This robust measure not only supports the traditional bound book editions but also encompasses digital versions, ensuring that publishers can adapt to the changing dynamics in the way people read and consume literature today.
In terms of eligibility, a corporation must qualify as Canadian-controlled under the Investment Canada Act provisions and operate primarily through a permanent establishment in Ontario. Besides, more than 50% of their taxable income should be allocated to Ontario in the year the claim is made. This ensures that the economic benefits primarily support the provincial economy.
Eligible literary works are required to be new, with at least 90% of the content unpublished in previous editions (prior to the granting of the credit). The works should fall under specific categories including fiction, non-fiction, poetry, biography, and various genres targeted at children. This broad eligibility range ensures the inclusion of diverse literary forms, reflecting the province's vibrant publishing sector.
The tax credit is administered via a partnership between Ontario Creates and the Canada Revenue Agency (CRA), ensuring a streamlined process. Publishers must first obtain a Certificate of Eligibility from Ontario Creates, providing a structured overview of the detailed expenditure involved in each literary project. This certificate then accompanies the corporate tax return filed with the CRA to secure the entitlement of the refundable credit.
A notable evolution in the program is the removal of the requirement mandating a minimum print run of 500 copies for titles released after 2019. This amendment reflects the industry's move towards digital publishing and reduces barriers for smaller publishers who may not achieve high print volumes yet resonate significantly with niche or specialized readerships.
For publishers looking to engage with the OBPTC, it is essential to consider the meticulous record-keeping and documentation required throughout the process. Ensuring compliance with all eligibility criteria and maintaining detailed accounts of all eligible expenditures will facilitate timely and accurate claims, ultimately optimizing the financial advantages offered.
Moreover, should issues of eligibility arise, Ontario Creates provides avenues for communication and potential resolution, though applicants are advised that determinations made regarding ineligibility are final and not subject to standard appeal processes through CRA or Canada's Ministry of Finance, fostering an environment of transparency and accountability.
This tax credit represents a strategic initiative to nurture the creative industries within Ontario, supporting publishers while extending support to Canadian authors. By leveraging this program, Ontario not only fosters the growth of its book publishing industry but also fortifies its cultural influence nationally and internationally.
