Tax credit for the production of sound recordings

Who is eligible?

• Recognized record companies (maisons de disques) operating in Quebec
• Companies with an agreement with a recognized record company for the exploitation of eligible sound recordings, audiovisual digital recordings, or clips

Who is not eligible

• Companies controlled, directly or indirectly, at any time during the year or within the previous 24 months, by one or more persons who do not reside in Quebec.
• Companies that are exempt from tax for the year, or that are controlled, directly or indirectly, by one or more tax-exempt companies with a cultural mission (except those mandated to invest).
• Production companies whose sound recording, audiovisual, or clip is primarily intended for teaching or instructional purposes, or to fulfill the objectives of a business or organization other than commercial exploitation.
• Companies producing works that contain explicit sexual content, incite hatred toward an identifiable group, or are components of a game (for clips or audiovisual recordings).
• Companies seeking the credit for productions that already receive certain other government tax credits (such as for film, television, or multimedia production) for the same expenditure.

Eligible expenses

• Production salaries and wages directly attributable to the creation of the sound recording, digital audiovisual recording, or clip, paid to eligible employees or individuals residing in Quebec.
• Amounts paid, other than salaries, for services directly related to production, including fees to Quebec-based individuals, companies, or partnerships that contribute to the production.
• Reasonable production costs, except producer fees and administration costs, providing they are included in the production or capital cost and incurred for eligible production tasks.
• Reasonable fees related to producer compensation and administration, provided they have been paid at the time of the tax credit claim.
• Design and creation of cover artwork, mastering, and pressing costs (up to 20,000 copies pressed within 18 months of release for sound recordings and digital audiovisual recordings).

Eligible geographic areas

• Companies with an establishment in Quebec.

• The application must be submitted through the secure SOD@ccès electronic portal.
• SODEC charges administrative fees for issuing eligibility attestations, calculated at $4 per $1,000 of eligible production costs, with minimum and maximum fees per production set at $100 and $575 respectively.
• A visual identification featuring the "Québec" logo and the text "Crédit d’impôt enregistrements sonores – Gestion SODEC" must be displayed on every supported project's packaging and promotional materials.
• If the application is found incomplete, a 10-day period is granted to provide missing information; otherwise, the application will be closed without further notice.