Ontario Production Services Tax Credit (OPSTC)

• The tax credit is calculated as 21.5% of all qualifying Ontario production expenditures incurred by the applicant corporation for the eligible production.
• Ontario labour expenditures, including Ontario labour paid under an eligible service contract, must constitute at least 25% of qualifying production expenditures claimed.
• The maximum eligible expenditures for leasing real property for on-location filming that can be claimed per production is capped at 5% of qualifying production expenditures, net of these location costs.
• There are no per-project or annual corporate limits on the total amount of tax credit that may be claimed.
• An administration fee is applied at 0.15% of eligible expenditures, with a minimum fee of $5,000 and a maximum of $15,000 per application.

• The applicant must be a Canadian or foreign-owned corporation active in film or video production or production services, with 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 during production in Ontario or contract directly with the copyright owner to provide production services.
• The primary business activities in Ontario must relate to film or video production or production services (more than 50% of activities).
• The project must not be in an excluded genre and must comply with all public policy considerations.

Who is eligible?

• Canadian or foreign-owned corporations engaged in film or video production or production services
• Corporations operating a film or video production business at a permanent establishment in Ontario
• Companies providing film or television production services to copyright owners

Who is not eligible

• Corporations that are exempt from tax, including non-profit or registered charitable organizations.
• Labour-sponsored venture capital corporations under section 127.4 of the Income Tax Act (Canada).
• Companies whose primary activities are not in film or video production or production services (i.e., companies not primarily carrying on these businesses in Ontario).
• Corporations not carrying on business through a permanent establishment in Ontario.

Eligible expenses

• Salaries and wages paid to Ontario-based employees for work performed after the final script stage to the end of post-production.
• Payments under eligible service contracts to Ontario-based individuals (including freelancers) and Ontario-based companies or partnerships for services rendered in Ontario after the final script stage to the end of post-production.
• Acquisition or rental costs of tangible property (such as equipment, studio rentals, and computer software) used in Ontario and directly attributable to the production.
• Expenditures for leasing real property in Ontario for on-location filming, subject to the allowable maximum (up to 5% of qualifying production expenditures, net of these location costs), provided they are reasonable and paid to arm’s length parties.
• Union and guild fringe benefits paid to Ontario-based employees if they constitute taxable benefits.
• Security services provided by Ontario provincial or municipal police trade unions while on set.
• Food and non-alcoholic beverages for on-set catering and craft services.

Eligible geographic areas

• Corporations with a permanent establishment in Ontario.

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

• The administration fee for OPSTC applications is calculated as 0.15% of eligible expenditures, with a minimum of $5,000 and a maximum of $15,000 per application, payable at the time of submission.
• A non-refundable additional fee of $100 is charged for each amended Certificate or for applications filed more than 24 months after the relevant fiscal year-end.
• Applicants can combine the OPSTC with the federal Film or Video Production Services Tax Credit.
• Crowdfunding proceeds may be considered assistance depending on the model used, potentially affecting the tax credit calculation.