Ontario Production Services Tax Credit
ON, Canada
Tax credit for film and television production 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
- Arts, entertainment and recreation
grant_single|grantors
- Government of Ontario
- Ontario Creates
grant_single|status
grant_card_status|open
grant_single_labels|preview
Refundable tax credit of 21.5% of production expenses for films and television shows produced in Ontario.
grant_single_labels|terms_and_conditions
Financial support through the Ontario Production Services Tax Credit is focused on refunding eligible production expenditures to enhance local film and television productions in Ontario. This refundable tax credit provides flexibility and substantial support through outlined modalities.
- The credit amounts to 21.5% of qualifying production expenditures incurred in Ontario.
- No per-project or annual corporate tax credit limits are imposed, providing extensive financial support.
- Ontario labour expenditures must constitute at least 25% of the qualifying production expenditures claimed.
- The credit can be combined with the federal Film or Video Production Services Tax Credit of 16% on qualified Canadian labour expenditures.
- Eligible expenditures cover tangible property, wages, and service contracts specifically incurred in Ontario.
- Expenses must be incurred in the taxation year, paid within the taxation year or within 60 days after fiscal year-end.
- Payment is awarded after accounting for any Ontario taxes owing; if none, the full credit is disbursed.
- An administration fee of 0.15% is applied to eligible expenditures, subject to minimum and maximum caps.
- Overall eligibility and support are contingent on specific criteria regarding expenditure types and legislative compliance.
grant_single_labels|projects
Projects eligible for the Ontario Production Services Tax Credit focus on film or television productions with certain financial and content criteria. These activities exclude productions in specific genres and aim for commercial exploitation on various platforms.
- Producing feature films or television series with a production cost exceeding $1 million CAD.
- Producing episodes for series or pilots with costs exceeding $100,000 CAD for episodes less than thirty minutes, or $200,000 CAD for longer episodes.
- Engaging in productions that pursue commercial distribution through theatrical release, television broadcast, or online platforms.
- Utilizing production services in Ontario, focusing on labour, service contracts, and tangible property expenditures.
grant_single|admissibleProjectsExample
$ 430,000
Television cooking show production
$ 258,000
Documentary film on Indigenous art and culture
$ 645,000
Animated children's film production
$ 215,000
Indie film production about youth culture
$ 322,500
Documentary series on environmental conservation
$ 1,075,000
Production of a historical drama series
grant_single_labels|admissibility
Eligibility for the Ontario Production Services Tax Credit (OPSTC) requires the applicant to meet specific criteria pertaining to their operations and the nature of the production.
- The applicant must be a Canadian or foreign-owned corporation that carries on a film or video production, or production services business, at a permanent establishment in Ontario.
- The corporation must file an Ontario corporate tax return.
- The corporation must either own the copyright in the eligible production or contract directly with the copyright owner to provide production services to the eligible production.
grant_eligibility_criteria|who_can_apply
The Ontario Production Services Tax Credit (OPSTC) is designed for Canadian or foreign-owned corporations that carry on a film or video production or production services business at a permanent establishment in Ontario. Eligible entities must file an Ontario corporate tax return and either own the copyright in the eligible production or contract directly with the copyright owner to provide production services for an eligible production.
grant_eligibility_criteria|who_cannot_apply
The Ontario Production Services Tax Credit (OPSTC) has specific exclusions regarding the types of productions and companies eligible for the credit. These restrictions help ensure that the credit is allocated to suitable film and television projects aligned with public interest and policy.
- Companies producing content in excluded genres such as news, current events, or public affairs programming.
- Organizations involved in producing talk shows, game shows, sports events, or reality television.
- Businesses that produce content not intended for commercial exploitation via theatrical distribution, television broadcast, or alternative means.
- Companies engaged in producing advertising material or pornography.
- Industries creating industrial, corporate, or institutional purpose productions.
- Productions that involve content contrary to public policy or funded by public financial support deemed inappropriate.
grant_eligibility_criteria|eligible_expenses
The Ontario Production Services Tax Credit (OPSTC) supports eligible film or television productions that involve significant production activities and expenditures within Ontario. Productions must not belong to excluded genres and should aim for commercial exploitation through various distribution means.
- Productions with budgets exceeding $1 million for films or television, or over $100,000-$200,000 per episode for series, depending on length.
- Projects that began principal photography on or after November 1, 2022, and aim for theatrical distribution, television broadcast, or online streaming.
- Productions including a required screen credit in the end credits acknowledging tax credit support from Ontario for projects starting after August 24, 2023.
- Activities involving eligible production expenditures in Ontario, including labour, service contracts, and tangible property expenditures.
grant_single_labels|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
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: Determine Eligibility
- Ensure your production meets the minimum cost requirements and is not in an excluded genre.
- Verify that your corporation is eligible, has a permanent establishment in Ontario, and addresses the copyright ownership requirements.
- Step 2: Prepare Your Application
- Gather all documents related to your Ontario qualifying production expenditures, including labor, service contracts, and tangible property expenditures.
- Ensure all eligible expenditures and production stages align with guidelines between script to post-production.
- Prepare the required screen credit materials if your production commenced principal photography after August 24, 2023.
- Step 3: Application Submission to Ontario Creates
- Submit an application to Ontario Creates for a Certificate of Eligibility using the forms and guidelines provided on their website.
- Include necessary forms such as the Qualifying Production Expenditure Calculation Form and any additional documents required by Ontario Creates.
- Step 4: File Tax Return with CRA
- Once the Certificate of Eligibility is received, file it along with your corporate tax return with the Canada Revenue Agency (CRA).
- Opt to use the "T2 attach-a-doc" feature or submit electronically via My Business Account, or send by mail or fax.
- Step 5: Receive Tax Credit Payment
- Upon CRA's processing, receive the tax credit amount, subtracting any Ontario taxes owed, paid out to your corporation.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The OPSTC can be applied alongside the federal Film or Video Production Services Tax Credit, allowing for a combined credit application.
- There is a requirement of screen credits in the end credits for productions with principal photography beginning on or after August 24, 2023.
- OPSTC is administered jointly by Ontario Creates and the CRA, requiring coordination in application processes.
- Location fees and certain other expenses incurred after November 14, 2022, have specific eligibility conditions, such as arm's length dealings.
- The OPSTC calculation involves a 21.5% credit rate on qualifying expenditures incurred in Ontario.
- An administration fee of 0.15% of eligible expenditures with specified minimum and maximum amounts is applicable.
- Some specific COVID-19 related expenses might not qualify, based on guidelines regarding eligible expenditures.
- Productions considered contrary to public policy or in excluded genres are ineligible for the OPSTC.
- Assistance, such as grants or subsidies, may reduce the credit amount, except for specific transitional funds.
- Recognition of eligible expenses is tied to geographical and timing constraints, ensuring expenditures are related to producing in Ontario.
- For productions not released to the public, the screen credit requirement might not apply unless there are released versions.
- International versions of productions might be exempt from the screen credit requirement under certain jurisdictional restrictions.
Apply to this program
Unlocking the Benefits of the Ontario Production Services Tax Credit (OPSTC)
The Ontario Production Services Tax Credit (OPSTC) provides a significant financial incentive for corporations engaged in film or video production within Ontario. Designed to bolster the province's creative industries, this refundable tax credit is geared towards covering a portion of qualifying production expenditures incurred by eligible productions.
In-Depth Insights into the Ontario Production Services Tax Credit
The Ontario Production Services Tax Credit is a pivotal financial resource aimed at advancing the film and television production landscape within Ontario. Managed collaboratively by Ontario Creates and the Canada Revenue Agency, the OPSTC offers a refundable tax credit calculated as 21.5% of all qualifying production expenditures. This initiative supports both Canadian and foreign-owned production companies that establish operations in Ontario, encouraging substantial investment in the local economy.
The OPSTC is particularly notable for its non-restrictive nature, allowing productions to surpass $1 million in cost while leveraging the province’s rich creative resources. In particular, television series production costs are structured to accommodate budgetary thresholds that vary based on episode length. By demanding a minimum percentage of Ontario labour expenditures, the program ensures meaningful employment and skill development for residents within the province. Furthermore, this tax credit can coexist with federal incentives, amplifying the financial viability for participating corporations and expanding the overall budgetary scope of productions.
There have been strategic regulatory amendments to the OPSTC, notably extending eligibility to productions released exclusively online. This aligns with the current digital consumption trends and broadens access for productions distributed via streaming services, thus reflecting the province's commitment to staying at the forefront of technological advances in content delivery. With the inclusion of productions offered through subscription-based and ad-supported platforms, producers can now access a wider audience and generate more robust streams of revenue.
Compliances such as the screen credit requirement further elevate the importance of crediting Ontario for its support. This mandate ensures that the province’s contributions are acknowledged in the end credits, fostering a culture of mutual benefit and showcasing Ontario as a dynamic production hub. Productions need to effectively integrate this requirement to avoid repercussions such as the revocation of tax certificates.
Financial nuance is another critical aspect of OPSTC, with guidelines stipulated for eligible costs ranging from local expenditures on labor, service contracts, and tangible property. To qualify, these must be direct and reasonable expenses embedded within the production lifecycle from script to post-production, thus reinforcing disciplined financial planning and execution.
Ultimately, the Ontario Production Services Tax Credit serves not only as a substantial financial motivator but also as a testament to Ontario’s strategic investment in its creative industries. Through facilitative taxation policies, Ontario enriches its audiovisual sector while enticing sustainable foreign investments, thereby leveraging its position as a leading production destination. In this dynamic environment, the OPSTC stands as a critical cornerstone of Ontario’s creative economy, driving innovation, employment, and growth across the film and television sectors.
