Ontario Production Services Tax Credit
At a glance
- No Condition
- Open Date : November 14, 2019
- All industries
- Government of Ontario
- Ontario Creates
Overview
Eligibility criteria
The Ontario Production Services Tax Credit (OPSTC) is a refundable tax credit based on qualifying production expenditures incurred in Ontario for eligible film or television productions. To be eligible, the qualifying corporation must meet certain criteria including ownership of the copyright in the eligible production and compliance with production cost thresholds.
- A qualifying corporation must be Canadian or foreign-owned, operate a film or video production business in Ontario, file an Ontario corporate tax return, and own the copyright in the eligible production.
- An eligible production must exceed a minimum production cost, not be in excluded genres, and must be intended for commercial exploitation via theatrical distribution, television broadcast, or alternative means such as online platforms.
- Qualifying production expenditures must be incurred in Ontario and include wages, service contracts, and tangible property expenditures.
- Labour expenditures must be at least 25% of qualifying production expenditures, and the OPSTC can be combined with the federal tax credit.
Who is eligible
Eligible companies for the Ontario Production Services Tax Credit (OPSTC) grant include Canadian or foreign-owned corporations that carry on a film or video production or production services business at a permanent establishment in Ontario. These companies must file an Ontario corporate tax return and own the copyright in an eligible production or provide production services directly to an eligible production. They must also meet expenditure and genre requirements.
- Canadian or foreign-owned corporations
- Companies carrying on a film or video production or production services business in Ontario
- Companies filing an Ontario corporate tax return
- Companies owning the copyright in an eligible production or providing services to an eligible production
Eligible expenses
There are eligible expenses for the Ontario Production Services Tax Credit (OPSTC) grant. The eligible expenses include:
- Wages paid to Ontario-based individuals
- Service contracts with Ontario companies or partnerships
- Tangible property expenditures such as equipment and studio rentals
- Location fees incurred after November 14, 2022
Evaluation & selection criteria
There are evaluation and selection criteria for this grant. The criteria include:
- Qualifying Production Expenditures
- Eligibility for the OPSTC
- Enactment Dates Impact
- Online Platform Eligibility
- End Credit Requirement
How to apply
- Step 1: Determine if your production qualifies for the Ontario Production Services Tax Credit (OPSTC) by meeting the minimum production cost and not being in an excluded genre.
- Step 2: Ensure your qualifying corporation meets the eligibility criteria, including being a Canadian or foreign-owned corporation with a permanent establishment in Ontario.
- Step 3: Calculate your qualifying production expenditures incurred in Ontario and ensure they meet the required percentage thresholds.
- Step 4: Apply to Ontario Creates for a certificate of eligibility for the OPSTC and file it with the Canada Revenue Agency along with your tax return to claim the tax credit.
Ontario Production Services Tax Credit (OPSTC)
The Ontario Production Services Tax Credit (OPSTC) is a refundable tax credit based on qualifying production expenditures incurred in Ontario by a qualifying corporation for an eligible film or television production, amounting to 21.5% of the total expenditures. This credit is administered jointly by Ontario Creates and the Canada Revenue Agency, providing financial incentives for film and TV production in the province.
Overview of the OPSTC
The OPSTC offers a tax credit of 21.5% of qualifying production expenditures incurred in Ontario by a qualifying corporation engaged in film or TV production. Productions must meet certain criteria such as exceeding a minimum production cost and not being in an excluded genre to be eligible. The tax credit can be combined with the federal Film or Video Production Services Tax Credit to further support production activities.
To be eligible for the OPSTC, a qualifying corporation must carry out the production or production services business at a permanent establishment in Ontario and meet specific ownership and copyright requirements. The production cost must be above specified thresholds, and the production must be intended for commercial exploitation through various distribution channels.
Qualifying production expenditures include wages, service contracts, and tangible property expenditures incurred in Ontario for the stages of production after the final script stage. The expenditures need to be reasonable, directly related to production, and meet specific payment and attribution criteria to qualify for the tax credit. Ontario-based individuals and companies with a permanent establishment in Ontario are eligible to receive payments under the OPSTC.
The OPSTC is jointly administered by Ontario Creates and the Canada Revenue Agency, requiring applicants to obtain a certificate of eligibility from Ontario Creates and file it with their tax return to claim the credit. The credit is calculated based on the qualifying production expenditures and is subject to certain tax credit limits. The administration fee for the OPSTC application is contingent on the total eligible expenditures incurred during production.
Overall, the OPSTC serves as a financial incentive for film and television production in Ontario, encouraging industry growth, job creation, and investment in the province’s entertainment sector.
