- Refundable corporate tax credit
- Focused on supporting film and video production
- Accepts applications each taxation year
The Canadian Film or Video Production Tax Credit (CPTC), co-administered by the Canadian Audio-Visual Certification Office (CAVCO) and Canada Revenue Agency (CRA) is a refundable corporate tax credit designed to encourage the creation of Canadian film and television programming and the development of an active domestic independent production sector in Canada.
The Canadian Film or Video Production Tax Credit (CPTC) provides eligible productions with a fully refundable tax credit, available at a rate of 25% of the qualified labour expenditure.
To be eligible for CPTC certification, a production must be a linear, non-interactive film or video production.
The qualified labour expenditures is the lower of the following two amounts:
- The eligible production cost for the production (equal to 60% of the total production costs, not including financing amounts considered assistance)
- The net labour expenditures for the production (equal to the total of all eligible labour expenditures minus amounts that are labour deferrals). Labour expenditures include:
- Salaries or wages
- Remuneration other than salary or wages
- Reimbursements by a wholly-owned corporation to its parent
To be eligible for the CPTC, the following conditions must be met:
- The production company must be a prescribed taxable Canadian corporation whose activities consist primarily of carrying on a Canadian film or video production business, through a permanent establishment in Canada.
- Only the production company or a prescribed person may own copyright in the production during the 25-year period beginning when the production is complete and commercially exploitable
- The production must obtain a minimum number of points given for key creative positions occupied by Canadian citizens or permanent residents, and obtain certain points that are mandatory
- All producer-related personnel must be Canadian (except in limited circumstances)
- At least 75% of the total of all costs for services related to producing the production must be payable to individuals who are Canadian
- At least 75% of the total of all post-production costs for a production must be incurred for services provided in Canada
- Only the production company of a prescribed person may control the initial licensing of commercial exploitation rights for the production
- Either a Canadian distributer or a CRTC-licensed broadcaster must provide written confirmation that the production will be shown in Canada within the two-year period beginning when the production is complete and commercially exploitable
- The production cannot be distributed in Canada by a non-Canadian entity within the two-year period beginning when the production is complete and commercially exploitable
- The production company or a related prescribed taxable Canadian corporation must receive an acceptable share of revenues from the exploitation of the production in non-Canadian markets.
CPTC accepts applications within 24 months from the first taxation year end date following the commencement of principal photography.