Ontario Production Services Tax Credit for TV & Film

The Ontario Media Development Corporation has reinforced their support of the production of television and film media in Ontario through a new tax incentive called the Ontario Production Services Tax Credit (OPSTC). Similar to the Ontario Interactive Digital Media Tax Credit, the OPSTC requires applicants to be Ontario-based companies who file Ontario corporate tax returns. The tax credit also requires the company to own the copyright, or have a contract with the copyright owner, to the eligible production.

Ontario Tax Credit Amount

This Ontario tax incentive covers expenses related to the production of a television program or film. 25% of these expenditures are covered with no maximum limit. The production cost must be at least $1 million, except in the case of a pilot show or a series consisting of two or more episodes. For pilot shows and series running thirty minutes or less, the production costs must be $100,000 or greater and shows over thirty minutes must incur at least $200,000 in production expenses.

Eligible Expenses

Most costs related to the production of the television program or film are covered, including:

• Eligible wages
• Eligible service contracts
• Eligible tangible property expenditures (ie. equipment, studio rentals, software)

These expenses must be paid to companies and partnerships that are established in Ontario. Eligible costs also need to be directly attributable to the production and must be incurred in the taxation year, paid in the same taxation year or within 60 days after the end of the taxation year.

Apply for this Ontario Government Funding Program

Interested parties are encouraged to visit the Ontario Productions Services Tax Credit Website or contact Mentor Works for more details. Also, please download the OPSTC Guidelines for a detailed overview of the tax credit and visit the Online Application Portal when you are ready to begin.