Québec Tax Credit for Film Production Services
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Tax Credit
Description:
The refundable Québec Tax Credit for Film Production Services (QPSTC) is designed to stimulate job creation in Québec, essentially by encouraging foreign producers to choose Québec as a filming location.
Comments on Funding:
1. The tax credit corresponds to 20% of the qualified expenditures incurred by an eligible corporation for services provided in Québec for the making of an eligible production. The base of the tax credit applies to all-spend production costs, which corresponds to the total of the qualified labour costs and the costs of qualified properties.
2. In addition, eligible expenditures that relate to computer-aided animation and special effects including the shooting of scenes in front of a chroma-key for use in an eligible production give rise to an increase in the rate of the tax credit. This increase corresponds to an additional rate of 16% of the qualified labour cost (broad notion).
Rolling deadline
Eligibility:
The applicant must:
1. be a corporation, for a taxation year, has an establishment in Québec during the year;
2. have activities consist chiefly in carrying on a film or television production business or a film or television production services business.
3. be a corporation that:
a) either owns the copyright for the eligible production throughout the period during which the production is carried out in Québec;
b) or, in the case where the owner of the copyright is not an eligible corporation in regard to such a production, has concluded, directly with the owner of the copyright for the eligible production, a contract to supply production services in relation to such a production.
A corporation will be denied the QPSTC if, for a taxation year, it is:
a) tax exempt;
b) controlled by one or more tax-exempt corporations; or
c) the holder of a broadcasting licence issued by the Canadian Radio-Television and Telecommunications Commission (CRTC) or a corporation that is not at arm’s length, in the year or the 24 months preceding said year, to a corporation which holds such a licence.
Application Steps:
1. All requests must be sent through the secure electronic portal SOD@ccès.
2. By connecting to SOD@ccès, applicants must:
a) create their user profile if they are a new user or enter their access codes;
b) select a SOD@ccès program number:
– Approval Certificate: 50-33-00-04;
– Advance Ruling: 50-33-00-03.
c) fill out the application form and forward all required documents.
Documentation Needed:
Applicants must prepare the documentation to transfer to SOD@ccès, including:
1. a declaration of the copyright owner – Approval certificate;
2. a declaration of the qualified corporation – Advance Ruling;
3. a statement relating to Official Representative;
4. a detailed Québec budget;
5. additional information, as listed.
Other Things to Note:
Please make sure to attach all required documents in SOD@ccès. Only complete and compliant applications will be analyzed. Files submitted that are found to be incomplete will be systematically declared inadmissible and refused and will have to be resubmitted. Read the Info-SODEC about the processing of incomplete applications.
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Maurice
