Canada – Federal

Be a taxable Canadian entity; have a permanent establishment in Canada; be primarily in the business of film/video production or film/video production services; own the production’s copyright during the production period or have a direct contract with the owner of the copyright; submit an application for an Accreditation Certificate along with a Canadian Dollar (CAD) 5,000 administrative fee to CAVCO any time after the production’s budget is locked and a detailed synopsis of the production can be provided; during the 24-month period after the start of principal photography anywhere, meet the appropriate global minimum spending requirement of more than CAD 100,000 (approximately USD 74,000) per episode for productions less than 30 minutes, more than CAD 200,000 per episode for productions 30 minutes or longer, or more than CAD 1 million for feature films or any other productions; and file a tax return accompanied by the Accreditation Certificate and other required documents.

Qualified Canadian labor includes salaries paid to Canadian residents or taxable Canadian corporations for services provided in Canada and incurred from the final script stage to the end of the postproduction stage. Costs which are not eligible include the salaries of nonresidents, the cost of advertising, marketing, promotion, market research, and any amount related in any way to another film or video production.

This incentive program is administered on a first-come, first-served basis. The Film or Video Production Service Tax Credit (PSTC) is a refundable tax credit equal to 16% of qualified Canadian labor expenditures that were incurred in Canada (reduced by any other assistance received, such as the provincial incentives). A corporation must have an Accreditation Certificate before it can apply for the tax credit. The Canada Revenue Agency will determine the amount of the tax credit a production company is entitled to after a tax return and the required documentation is filed.