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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|minCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
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
Refundable tax credit of 21.5% of production expenses for films and television shows produced in Ontario.
grant_single_labels|terms_and_conditions
- The Ontario Production Services Tax Credit (OPSTC) offers a refundable tax credit calculated as 21.5% of qualifying Ontario production expenditures.
- Eligible expenditures include Ontario qualifying production expenditures such as labour costs, service contracts, and tangible property expenditures.
- The tax credit can be claimed against Ontario taxes owed, with any remaining balance refunded to the corporation.
- There are no per-project or annual corporate tax credit limits imposed on the amount of the OPSTC that may be claimed.
- For productions where principal photography commenced on or after November 1, 2022, an end credit acknowledgment of Ontario tax credit support is mandatory.
- Eligible productions may be combined with the federal Film or Video Production Services Tax Credit of 16% of qualified Canadian labour expenditures.
- An administration fee for application processing is calculated as 0.15% of the eligible expenditures, with a minimum of $5,000 and a maximum of $15,000 per application.
- The refundable credit, net of any Ontario taxes due, will be issued by the Canada Revenue Agency (CRA) once the Certificate of Eligibility is filed alongside the corporation's tax return.
- The funding may include assistance in the form of grants, subsidies, or forgivable loans, affecting the calculation of the tax credit.
- The tax credit does not consider bona fide loans with scheduled repayment dates, other tax credits, licence fees, or equity investments as assistance impacting credit calculation.
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
- Eligible wages paid to Ontario-based employees.
- Eligible service contract expenditures paid to companies or partnerships with a permanent establishment in Ontario.
- Eligible tangible property expenditures such as equipment, studio rentals, and computer software, used in Ontario for the production.
- Location fees for real property leased in Ontario, up to 5% of the production’s qualifying production expenditures.
- Costs related to the acquisition or rental of tangible property used in the production.
- Expenditures must be reasonable, directly related to the production, and incurred after the final script stage to the end of post-production.
grant_eligibility_criteria|zone
- Permanent establishments located in Ontario, Canada.
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
- Step 1: Create an Account on the Online Application Portal (OAP)
- Access the Ontario Creates Online Application Portal.
- Register your corporation by creating an account if you don't already have one.
- Step 2: Prepare Necessary Documentation
- Compile all required documents, including the completed OPSTC Application, incorporation documents, and production-specific documentation such as production schedules, budgets, and cost reports.
- Ensure all documents are current and submit any updated documentation as necessary.
- Step 3: Calculate and Pay Administration Fee
- Calculate the administration fee based on 0.15% of the eligible expenditures, with a minimum of $5,000 and a maximum of $15,000 per application.
- Pay the administration fee via Interac e-Transfer when submitting the application.
- Step 4: Submit Application through OAP
- Log in to the OAP and start the OPSTC application process.
- Upload all required documentation through the OAP.
- Submit the completed application within the 90-day window provided post-starting the application.
- Step 5: Await Review and Response
- Wait for the application to be reviewed by a Tax Credit intake officer, who will check for completeness.
- Respond promptly if additional documentation is requested to ensure the application process proceeds smoothly.
- Step 6: Receive Certificate of Eligibility
- Once reviewed, receive the Certificate of Eligibility from Ontario Creates.
- Use this certificate to file your T2 Corporation Income Tax Return with the CRA.
- Step 7: Submit Certificate to CRA
- Submit the Certificate of Eligibility along with your corporate tax return and Schedule T2SCH558 to the CRA to claim the OPSTC.
- Monitor the processing of the claim, as facilitated by the CRA.
grant_single_labels|otherInfo
- The OPSTC can be combined with the federal Film or Video Production Services Tax Credit for additional benefits.
- There are no per-project or annual corporate tax credit limits under the OPSTC.
- Productions that commenced principal photography after August 24, 2023, must include a mandatory screen credit acknowledging Ontario tax credit support.
- The OPSTC rate is 21.5% of qualifying Ontario production expenditures.
- Eligible productions must engage in significant production activities within Ontario.
grant_single_labels|contact
taxcredits@ontariocreates.ca
416-642-6659
