Film and Video Tax Credit
$5,000,000.00
Tax credit
Description:
The Film and Video Tax Credit is a refundable provincial corporate income tax credit and is provided for eligible local film projects at a rate of 40% of eligible local labor costs, but may not exceed 25% of production costs.
Comments on Funding:
Funding is 40% of eligible local labor costs, but may not exceed 25% of production costs. The maximum tax credit within a 12 month period that may be received by an eligible corporation, together with all corporations associated with that corporation, in respect of all eligible projects commenced on or after July 1, 2021 is $5,000,000.
Rolling deadline
Eligibility:
Applicants must:
1. be a corporation incorporated under the Corporations Act or an Act of the Parliament of Canada or of the legislature of a province and have a permanent establishment in the province,
2. primarily carry on the business of film, television or video production,
3. pay at least 25% of salaries and wages with respect to an eligible project in Newfoundland and Labrador to eligible employees (for work performed in the province),
4. be producing an eligible project (a film television program or series or video program and the subject of the proposal is drama, variety, animation, children’s programming, music programming, an informational series or a documentary).
Application Steps:
Applicants must:
1. first apply for eligibility to the Newfoundland and Labrador Film Development Corporation prior to the commencement of production,
2. apply for the tax credit once the project is completed, and financial statements and cost reports finalized,
3. attach the tax credit certificate to the T2 return.
Documentation Needed:
Applicants must provide the following information:
1. the estimated total production costs and the estimated eligible salaries,
2. the estimated value of the tax credit,
3. a financing plan including recoupment schedule,
4. the expected revenue from the sale of the production,
5. a script,
6. other information the minister may require.
Other Things to Note:
The film and video industry tax credit is a fully refundable corporate income tax credit administered on behalf of the Department of Finance by the Newfoundland & Labrador Film Development Corporation (NLFDC).
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Maurice
