Overview
Refundable tax credits relevant to film production are offered by both the federal government and the province of Ontario. The federal tax credits consist of:
(i) the Canadian Film or Video Production Tax Credit (CPTC); and
(ii) the Canadian Film or Video Production Services Tax Credit (PSTC).
The Ontario tax credits consist of:
(i) the Ontario Production Services Tax Credit (OPSTC);
(ii) the Ontario Computer Animation & Special Effects Tax Credit (OCASE);
(iii) the Ontario Film & Television Tax Credit (OFTTC); and
(iv) the Ontario Interactive Digital Media Tax Credit (OIDMTC).
Each credit is refundable and the Ontario tax credits are "stackable" in those combinations described in the following pages. If, for example, Ontario credits of 20% and 25% are stackable, the total credit would be 45%. However, the relevant Federal tax credit would only apply to the balance of qualifying expenditures. Assuming, then, a stacked Ontario credit of 45% (OPSTC and OCASE) and a Federal credit of 16% (PSTC), the combined Federal and Ontario tax credit would be 53.8% [Step 1: 100 - 45% = 55. Step 2: 16% of 55 = 8.8. Step 3: 45 + 8.8 = 53.8].
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
